New Delhi: The government on Tuesday approved rail, airport, and metro projects worth about ₹12,236 crore, along with reforms in the power sector, and an increase in the support price for raw jute.
The cabinet and its committee on economic affairs (CCEA), in the first meeting at Seva Teerth, the new Prime Minister’s Office (PMO), increased the minimum support price (MSP) of raw jute to ₹5,925 per quintal, an increase of ₹275 per unit, Union minister of information and broadcasting Ashwini Vaishnaw said. This change is estimated to cost the public exchequer ₹430 crore, he said.
India is the world’s largest producer of jute, accounting for over 50-70% of global production. and with cultivation largely concentrated in West Bengal, Assam, Bihar, Odisha, Meghalaya and Tripura. According to official estimates, jute is grown on around 7 lakh hectares annually, with West Bengal accounting for nearly 70 per cent of the total acreage. The country produces roughly 90–100 lakh bales (of 180 kg each) of raw jute every year, depending on monsoon conditions.
At ₹5,925 per quintal, growers will receive a guaranteed floor price. With input costs such as fertilizers, labour and irrigation rising, the enhanced MSP is expected to partially offset higher production expenses, said Puneet Singh Thind, founder & director, Northern Farmers Mega FPO, a federation of farmer-producer organizations from five North Indian states.
The move comes at a time when demand for eco-friendly and biodegradable packaging is increasing, giving jute — often called the “golden fibre” — renewed relevance in domestic and export markets.
Ceiling raised
The cabinet also approved an increase in the equity investment ceiling for Power Grid Corporation of India to ₹7,500 crore from ₹5,000 crore earlier, in order to enable the country’s largest transmitter of electricity to participate in high-value bids it was previously unable to bid for, said Vaishnaw.
However, the existing cap of investment up to 15% of the company’s net worth has been retained. As Power Grid mostly forms separate subsidiaries or Infrastructure Investment Trusts (InvIT) for its projects, this approval would help it invest more in these projects.
India’s power transmission capacity currently stands at more than 5 lakh circuit km (ckm). Under the National Electricity Plan, the government has set a plan to add a total of over 1,91,000 ckm of transmission lines from 2022-23 to 2031-32. However, the progress so far has been slow. As of December FY26, a total of 5,077 ckm was added, compared to the target of 10,696 for the period of April-December.
Railway projects
The cabinet also approved three railway projects in central and eastern regions to reduce congestion in passenger and freight travel and reduce logistics costs.
The projects covering eight districts across Maharashtra, Madhya Pradesh, Bihar and Jharkhand will expand the Indian Railways network by about 307 km, at a total cost of about ₹9,072 crore, said a CCEA statement.
“The projects are essential routes for transportation of commodities such as coal, steel, iron ore, cement, ballast and stone chips, fly ash, fertilizers, limestone, manganese, dolomite, foodgrains, POL etc,” said the statement. It also added that freight capacity would increase by 52 million tons per annum (MTPA), and that these routes would also cover popular tourist destinations such as Kanha National Park, Dhuandhar Waterfall, and Pench National Park, among others.
The three routes approved include doubling of the 231 km Gondia-Jabalpur line; 50 km Punarakh-Kiul third and fourth lines; and 26 km Gamharia-Chandil third and fourth lines.
Civil enclave
The CCEA also approved the development of the Civil Enclave at Srinagar International Airport at an estimated cost of ₹1,677 crore to support the increase in tourism demand, especially following the abrogation of Article 370, said Vaishnaw.
The enclave, to be built by the Airports Authority of India (AAI), will include a 71,500 sq m terminal building and barracks for security personnel, Vaishnaw told reporters.
Currently, the Srinagar airport has a capacity of 3 million passengers annually, while it recorded about 4.5 million passengers in FY25, said Vaishnaw. He said the airport’s existing capacity of 950 peak-hour passengers (PHP) would be increased to 2,900 PHP.
Metro line
The cabinet also approved extension of a metro line from GIFT City in Gujarat to Shahpur, a 3.33km project with an estimated cost of ₹1,067 crore, Vaishnaw said. “This extended corridor is expected to benefit approximately 23,702 passengers in 2029 and approximately 58,059 passengers in 2041. This corridor will strengthen connectivity between Ahmedabad & GIFT region. Major multinational companies, educational institutions, and commercial centres located along the proposed route will directly benefit,” said the cabinet statement.
Keralam soon
The Union cabinet also approved a proposal to rename Kerala as Keralam, reflecting the state’s name in Malayalam. The demand to name states in their regional languages has been longstanding, said Vaishnaw.
Vaishnaw said the Kerala legislative assembly passed a decision to rename the state to Keralam in June 2024. Now, the president will refer the Union cabinet’s decision back to the state government to seek its views, following which the Centre will take further action, Vaishnaw said.