India Desk July 16, 2026 at 06:02 AM 2 min readindiabreaking

Cabinet Approves Major Highway Projects for Varanasi

Varanasi Infrastructure Expansion:

The Union Cabinet has approved the construction of two elevated highway corridors in Varanasi, totaling an investment of Rs 25,446 crore. This project is a central element of the Varanasi Decongestion Plan, designed to accommodate the city’s high volume of annual tourists, which currently reaches 15 crore. The initiative includes a 43-km link corridor along the Varuna river and a 46-km corridor along the Ganga, developed under the hybrid annuity mode (HAM) to alleviate urban traffic density.

Design and Connectivity:

The Varuna river project will feature a predominantly elevated 6/4-lane corridor with design speeds up to 100 kmph, significantly reducing travel time between NH-31 and Kashi railway station. The Ganga river corridor includes an iconic 910-meter cable-stayed bridge and pedestrian connectivity to the Kashi Vishwanath Temple. By diverting traffic from the densely populated urban core, these projects aim to decrease average travel times in project-influenced areas from 60 minutes to approximately 20 minutes.

Freight and Railway Upgrades:

Beyond urban congestion, the Cabinet approved two significant railway infrastructure developments to support freight movement. These include the doubling of the 74-km Paradeep-Haridaspur line in Odisha and the quadrupling of the 71-km Rajkharsawan-Dangoaposi line in Jharkhand. These corridors represent some of India's busiest freight routes, facilitating the transport of coal, iron ore, and limestone. The multitracking upgrades are expected to increase freight traffic capacity by 44 million tonnes per annum (mtpa), bolstering industrial connectivity across eastern India.
Pulse Intelligence
Context & Impact
  • Varanasi has experienced a massive surge in religious tourism, straining existing road networks.
  • The Paradeep-Haridaspur and Rajkharsawan-Dangoaposi railway lines are vital links for major Indian steel and mining hubs.
  • Urban traffic congestion in Varanasi is expected to decline significantly upon completion of the highway corridors.
  • Freight transit capacity between coal fields and steel plants will increase by 44 mtpa after railway track completion.
  • Increased construction activity will likely create short-term employment opportunities in Varanasi, Odisha, and Jharkhand.

Improved logistics infrastructure is expected to lower transportation costs for mining and steel companies in the long term.