Synopsis: The Union Cabinet’s plan, worth ₹2.19 lakh crore, consolidates seven strategic projects in the field of semiconductors, mobile manufacturing, fertilizers, roads and railways. This article covers the projects, investments in sectors, areas benefiting and more.
The Union Cabinet has approved seven mega projects with a total investment of ₹2.19 lakh crore, which include semiconductor, mobile manufacturing, fertilizer, highway, railway. The approvals will help foster the manufacturing ecosystem, enhance the transport network, reduce dependency on imports and provide employment opportunities on a large scale, thereby supporting India’s vision of becoming a global manufacturing and logistics hub.
7 Mega projects at a Glance
1. Semicon 2.0
Semicon 2.0 has been approved by the Union Cabinet with a budget of ₹1.27 lakh crore to give a boost to India’s goal of emerging as a semiconductor hub in the world. The mission is dedicated to developing a full semiconductor ecosystem through semiconductor design, semiconductor fabrication plants (fabs), semiconductor packaging and testing (ATMP/OSAT), research and development, manufacturing of critical materials and equipment, and talent development. On the back of Semicon 1.0, in which 12 semiconductor manufacturing projects have already been approved, the ecosystem has spread out to various locations across Gujarat (Dholera, Sanand and Surat), Assam (Jagiroad), Uttar Pradesh (Jewar), Odisha (Bhubaneswar), Punjab (Mohali) and Andhra Pradesh (Visakhapatnam), with Gujarat becoming India’s largest semiconductor hub.
2. The Mobile Phone Manufacturing Scheme (MPMS)
The Mobile Phone Manufacturing Scheme has been announced to promote the growth of domestic smartphone manufacturing and augment local value addition, boost exports and strengthen the domestic phone component manufacturing over the next five years with an outlay of ₹62,500 crores. Top mobile manufacturing units have set up their plants at Noida and Greater Noida (Uttar Pradesh), Sriperumbudur (Tamil Nadu), Sri City (Andhra Pradesh) and Bengaluru (Karnataka).
3. The National Investment Policy for Urea 2026
The Cabinet has accepted the National Investment Policy for Urea (NIP) 2026 for encouraging investment in new urea manufacturing plants and increasing the domestic urea manufacturing capacity. These measures are estimated to result in savings of over Rs.250 crore for each plant established under NIPU-2026 compared to NIP-2012. The policy will lessen the reliance on farm chemicals being imported into India, increase food security and secure continuity in the supply of urea to farmers. Key urea production centres such as Gorakhpur (Uttar Pradesh), Barauni (Bihar), Ramagundam (Telangana), Talcher (Odisha), Panagarh (West Bengal) and Namrup (Assam).
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4. Ganga Elevated Corridor, Varanasi (₹14,448 crore)
The Cabinet has given its approval to construction of a six-lane, 46-km-long, Greenfield Elevated Corridor on River Ganga in Varanasi, Uttar Pradesh, the cost of which will be Rs 14,448 crores. This corridor is set to cut travel time from 60 minutes to 20 minutes. The corridor will be linked to Varanasi Ring Road, which will relieve congestion in the city and better connect it with the ghats, airport, railway stations and neighboring highways.
5. Varuna Elevated Corridor, Varanasi
The Cabinet has also accepted the ₹10,998 crore Varuna Elevated Corridor project, which is a 43.2-km elevated corridor along the Varuna River at Varanasi in Uttar Pradesh, dual carriageway with 6/4 lanes. The project is a part of the city’s decongestion plan, which connects NH-31 with the Varanasi Ring Road. It will enhance the connectivity with Kashi Railway Station, Varanasi Airport, Varanasi Junction, Deen Dayal Upadhyaya Junction and Ramnagar Port.
6. The Paradeep–Haridaspur Railway Line Doubling
The Cabinet has approved two multi-tracking railway projects worth ₹3,907, including the ₹2,542 crore for doubling of 82-km Paradeep–Haridaspur railway line in Odisha. The project will improve freight connectivity from Paradip Port to the mineral and industrial belt in the state, allowing the movement of coal, iron ore and other commodities in a more efficient and timely way and thus bring relief to one of the busiest freight corridors in eastern India.
7. 4th Railway Line in Rajkharsawan-Dangoaposi, Jharkhand
The Cabinet has given its approval for a fourth railway line connecting the Rajkharsawan and Dangoaposi in Jharkhand with an allocation of ₹1,365 crore. This is the second project of the tow multi-tracking railway projects worth ₹3,907. The project will boost rail capacity, enhance the transportation of iron ore and steel, alleviate congestion on the line, boost traffic on freight and passenger services and enhance connectivity with eastern states of the country with their industrial corridors, as it will cross the mineral-rich region of West Singhbhum.
The combined investment of ₹2.19 lakh crore is expected to boost the manufacturing, logistics and industrial ecosystem in India. The semiconductor and mobile manufacturing policies look to make India a global electronics manufacturing power while the urea policy will make India less reliant on imports and more secure in the supply of urea. In the meantime, the highway and railway projects will facilitate connectivity, reduce logistics costs, boost exports, and generate thousands of jobs, providing a significant boost to the economic growth in the long term and the vision of ‘Atmanirbhar Bharat’.
