Cabinet Approves Ahmedabad (Sarkhej)-Dholera Rail Project Worth ₹20,667 Crore

The Union Cabinet has cleared the Ahmedabad (Sarkhej)-Dholera Semi High-Speed Double Line rail project on 13th of May, 2026. It will be India’s first ever semi high speed railway corridor with estimated cost of Rs 20,667 crore. This project will improve the connectivity between Ahmedabad, Dholera and upcoming project and Lothal National Maritime Heritage Complex.

Ahmedabad-Dholera Rail Project Gets Cabinet Approval

The Cabinet Committee on Economic Affairs (CCEA) which is chaired by Honorable Prime Minister Narendra Modi  has approved the major railway infrastructure proposal under the Ministry of Railways.

This will be the Indian Railways first semi high speed rail project developed using the indigenous technology and it will mark the landmark achievement for Indian railways modernization.

The total projected outlay for this project is around Rs 20,667 crore and expected to complete the project in FY 2030-31.

The new rail corridor will add approximately 134 kilometres to the country’s railway network.

Why This Project Matters for Gujarat

The newly proposed Ahmedabad-Dholera corridor is strategically important because it connects the Gujarat’s most critical future growth hubs.

The railway line will provide the direct connectivity between,

• Ahmedabad
• Dholera Special Investment Region (SIR)
• Upcoming Dholera International Airport
• Lothal National Maritime Heritage Complex

This connectivity is expected to improve the passenger movement and regional mobility.

India’s First Semi High-Speed Rail

Compare to the conventional rail upgrades this project is positioned as a reference model for future semi high speed rail expansion across India.

It could become the blueprint for the similar corridors in other states if successfully implemented.

The use of the indigenous technology also aligns with India’s vision of self reliance and domestic infrastructure development.

Economic Boost for Dholera and Ahmedabad Region

This railway project is expected to act as the major economic growth model.

Dholera is already being developed as India’s one of the flagship smart industrial cities under the Dholera Special Investment Region (SIR) initiative.

Better transport connectivity typically leads to the,

• Higher industrial investment
• Faster logistics movement
• Real estate growth
• Business expansion
• New employment generation
• Stronger regional development

The government states that this project will supports the vision of Atmanirbhar Bharat vision.

PM Gati Shakti and Multi-Modal Connectivity

The project has been planned under the PM Gati Shakti National Master Plan which focuses on integrated infrastructure planning.

This means the railway corridor is designed not as an isolated transport project but as part of the broader logistics and connectivity ecosystem.

Also with the integration with airport connectivity, industrial zones and heritage tourism infrastructure signals the larger strategy by government.