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Good news, railway passengers! Mumbai-Pune 48 min, Delhi-Lucknow 2 hr; Cabinet clears Rs 1.52 lakh-crore projects
Cabinet has cleared Rs 1.52 lakh crore projects across railways, credit, semiconductors and agriculture, with a focus on faster train travel and economic growth. Key routes like Mumbai–Pune, Bengaluru–Chennai and Delhi–Lucknow could see major travel time cuts, while ECLGS 5.0 and other measures boost businesses and farmers.
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Cabinet clears Rs 1.52 lakh crore push across cotton, railways, semiconductors, sugar and credit schemes. Image: ANI
Written By: Ankit Kumar
Updated: Wed, May 06, 2026
07:27 AM IST
07:27 AM IST
New Delhi, ZeeBiz WebDesk
India is set for a major economic and infrastructure push as the Union Cabinet led by Prime Minister Narendra Modi has cleared projects worth over Rs 1.52 lakh crore, with a direct impact on train travel time, business credit, semiconductor manufacturing and farmer income. At the centre of the decisions is a major railway expansion plan that could drastically cut travel time on some of India’s busiest routes, alongside big-ticket moves to boost liquidity, manufacturing and agriculture.
Faster trains: what it means for passengers
The biggest takeaway for commuters is a sharp drop in travel time across key high-density corridors:
- Mumbai–Pune in just 48 minutes
- Bengaluru–Chennai in 73 minutes
- Delhi–Lucknow in around 2 hours
Key approved railway projects include:
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- Nagda–Mathura 3rd and 4th line (Rs 16,403 crore)
- Guntakal–Wadi 3rd and 4th line (Rs 4,758 crore)
- Burhwal–Sitapur 3rd and 4th line (Rs 2,276 crore)
The aim is to reduce delays, improve punctuality and enable faster train operations across busy routes.
The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 approved by the Cabinet reflects our commitment to supporting India’s businesses, especially the MSME sector in challenging global times. By enabling additional credit flow with strong guarantee coverage, this initiative will…
— Narendra Modi (@narendramodi) May 5, 2026
Big boost to credit: ECLGS 5.0 explained
The Cabinet has approved Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, aimed at ensuring liquidity for businesses facing global uncertainties. Key highlights:
- 100 per cent guarantee cover for MSMEs
- 90 per cent for non-MSMEs and airline sector
- Additional credit flow target of up to Rs 2.55 lakh crore
- Airlines can avail up to 100 per cent of outstanding as working capital loans
- Likely beneficiaries include IndiGo and Air India
- Interest cap range:
- Banks around 9 per cent
- NBFCs around 13 per cent
Semiconductor push
In a major boost to electronics manufacturing, two new semiconductor units have been approved under the India Semiconductor Mission:
- Crystal Matrix Limited (Rs 3,068 crore)
- Suchi Semicon Pvt Ltd (Rs 868 crore)
These facilities in Gujarat will focus on advanced technologies such as Mini/Micro-LED displays and semiconductor packaging, supporting sectors from smartphones to automotive electronics.
With these approvals, India’s semiconductor investment pipeline has crossed Rs 1.64 lakh crore.
Farmers, sugar sector get support
The Cabinet has approved:
- Fair and Remunerative Price (FRP) of Rs 365 per quintal for sugarcane (2026–27 season)
- Direct benefit to nearly 5 crore farmers and 5 lakh workers
In addition, the Mission for Cotton Productivity – Kapas Kanti (Rs 5,659 crore) aims to improve yield, quality and global competitiveness of Indian cotton.
Supreme Court strength increased
In a key institutional move, the number of judges in the Supreme Court of India has been increased from 33 to 38, aimed at reducing case backlog and improving judicial efficiency.
Read More: IndiGo Flight faces fire scare after landing, passengers evacuated safely
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Ankit Kumar
Ankit Kumar
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