The Union Cabinet on Wednesday approved seven major decisions covering infrastructure, semiconductor manufacturing, mobile phone production, fertiliser and railway projects, with a combined outlay of Rs 2,19,353 crore, according to the Times of India. The announcements were made after the Cabinet and Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi.
Addressing the briefing, Minister Vaishnaw said, "I am presenting before you the seven major decisions taken by the Cabinet and the Cabinet Committee on Economic Affairs (CCEA) under the chairmanship of Prime Minister Narendra Modi."
Varanasi Infrastructure Projects
The first two decisions focus on developing infrastructure in Varanasi (Kashi). The Cabinet approved the construction of a 46.039-km link corridor connecting National Highway-19 (NH-19) with the Varanasi Ring Road, aimed at easing traffic congestion and enhancing connectivity along the Ganga riverbank. The corridor will feature a six-lane elevated carriageway, an iconic cable-stayed bridge, an extradosed foot over bridge-cum-major bridge, along with loops, ramps, link roads and service roads. It will be developed under the Hybrid Annuity Model (HAM) at a total cost of Rs 14,447.64 crore, including Rs 6,037.85 crore for civil construction and Rs 541.11 crore towards land acquisition. Additionally, a 6-/4-lane elevated corridor along the Varuna riverbank in Uttar Pradesh was approved at a total capital cost of Rs 10,998.32 crore.
Semicon 2.0 Mission
The Cabinet approved the second edition of the India Semiconductor Mission, or Semicon 2.0 Mission, with an outlay of Rs 1.27 lakh crore. This decision underscores India's push to bolster domestic semiconductor manufacturing capabilities.
Mobile Phone Manufacturing Scheme
Alongside the chip push, Minister Vaishnaw announced the extension of the Mobile PLI scheme, now named the Mobile Phone Manufacturing Scheme (MPMS), with a budget of Rs 62,500 crore for its second edition. The scheme aims to accelerate mobile phone production in India.
National Investment Policy for Urea
The Cabinet approved the National Investment Policy for Urea-2026, under which 9 new urea plants will be set up. The initiative is expected to achieve 1 crore additional urea requirement, helping India become self-reliant in urea demand.
Railway Upgrades
The Cabinet approved two railway projects: doubling the Paradeep-Haridaspur railway line at a cost of Rs 2,542 crore, and a fourth railway line between Dangoaposi and Rajkharsawan involving an investment of Rs 1,365 crore.
Summary of Seven Cabinet Decisions
| Decision | Outlay (Rs crore) | Key Details |
|---|---|---|
| Varanasi Link Corridor (NH-19 to Ring Road) | 14,447.64 | 46.039 km, six-lane elevated, HAM |
| Varuna Riverbank Elevated Corridor | 10,998.32 | 6-/4-lane, ramps & loops |
| Semicon 2.0 Mission | 1,27,000 | Second edition of India Semiconductor Mission |
| Mobile Phone Manufacturing Scheme (MPMS) | 62,500 | Extension of PLI scheme |
| National Investment Policy for Urea | Not separately stated | 9 new urea plants, 1 crore tonne additional capacity |
| Paradeep-Haridaspur Line Doubling | 2,542 | Railway track doubling |
| Dangoaposi-Rajkharsawan Fourth Line | 1,365 | Fourth railway line |
For manufacturing executives and plant managers, the decisions signal increased government support for electronics manufacturing (semiconductors and mobile phones), chemical production (urea), and improved logistics infrastructure (railway upgrades). The semiconductor and mobile phone schemes are particularly relevant for OEMs and Tier-1 suppliers in the electronics supply chain, while urea self-reliance impacts the agricultural input sector.
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