Cabinet approves ₹7,798 crore for two railway projects and venture capital fund to boost space economy. peppermint

New Delhi: The Union Cabinet on Thursday approved an amount Rs 7,798 crore for two railway connectivity projects and a venture capital (VC) fund to boost India’s space economy.

One rail project runs from Narkatiaganj to Darbhanga, covering a distance of 256 km, and the other from Errupalem and Namburu via Amaravati, covering a distance of 57 km. The projects will be completed in the next five years.

“The 256 km long railway project will benefit Uttar Pradesh and North Bihar. Connecting the inland container depot at Birgunj in Nepal, it will be important for India-Nepal trade. This will speed up the movement of food grains, fertilizers, cement, containers etc. The other railway project will improve the connectivity of central and northern India with southern India, with direct connectivity between Amaravati, Hyderabad, Chennai and Kolkata,” said Union Railway Minister Ashwini Vaishnav. , briefing journalists about cabinet decisions.

Read this also Cabinet increases support price for farmers, allowance for government employees, pensioners

Additionally, the capacity addition works will result in additional freight traffic of 31 million tonnes per annum. Being an eco-friendly and energy-efficient means of transportation, the railway will help achieve climate goals and reduce logistics costs, reducing CO2 emissions by 1.68 billion kilograms, which is equivalent to planting 70 million trees.

These projects will generate employment of 10.6 million man days, the minister said.

These projects come under the PM-Gati Shakti National Masterplan for Multimodal Connectivity, made possible through integrated planning and will provide seamless connectivity to move people, goods and services.

Vaishnav said 7,000 special trains are being run ahead of Diwali and Chhath Puja, accommodating 200,000 additional people compared to last year’s 4,500 special trains.

Read this also 7th Pay Commission: Cabinet approves 3% DA hike for central government employees before Diwali

VC funds for space economy

The Space Economy VC Fund, which aims to promote economic growth and job creation, will also be developed over the coming five years with proposed investments. 30-35 space startups to invest Rs 10-60 crore each over the next 10 years

It will be structured as per SEBI guidelines for Alternative Investment Funds.

“The number of startups is just a target—it is not restrictive. The amount will be given in two phases. In the first phase it will be 5-10 crores, and at a later stage it will be 10-60 crores. The number may increase depending on the type of company and its profile. We will be transparent in the valuation, selection of companies and a fund manager will operate the fund,” said Indian Space Research Organization chairman Sridhar Panikkar Somnath, who was also present at the press briefing.

The Railway Minister said, “This decision will motivate India to stand with developed countries like UK, US, Germany, France etc. Through this, young entrepreneurs and scientists will get opportunities.”

What is India’s space economy about at present? Which is likely to increase to Rs 70,000 crore 3.5 trillion by 2033. Vaishnav said, there are already 250 startups in the space sector.

Read this also Cabinet approves extension of fortified rice scheme to combat anemia till December 2028