Indian Railway Finance Corporation (IRFC) witnessed selling pressure on Friday and the stock closed 2.7 percent lower. Similar selling pressure was witnessed in other railway stocks like Railtel Corporation of India, Rail Vikas Nigam and IRCTC. However, these stocks could see positive activity on Monday as the Union Government has approved projects worth Rs 18,658 crore. These stocks will be direct beneficiaries of the projects announced by the Union Government.

Railway PSU Stocks in Spotlight as Union Cabinet Clears Rs 18,658 Crore Multitracking Push

Railway public sector undertakings such as Indian Railway Finance Corporation (IRFC), RailTel Corporation of India, and Rail Vikas Nigam Ltd (RVNL) are expected to remain in focus on Monday following the Union Cabinet’s approval of a sweeping set of railway infrastructure projects valued at Rs 18,658 crore.

The Cabinet Committee on Economic Affairs (CCEA) on Friday gave the green light to four multitracking railway projects across key freight and passenger corridors in Maharashtra, Odisha, and Chhattisgarh, according to Railways and Information & Broadcasting Minister Ashwini Vaishnaw.

Major Expansion: 1,247 km to Be Added to Existing Rail Network
The approved multitracking projects will result in a total of 1,247 kilometers of additional railway lines, of which 680 kilometers will be operational routes. The expansion will enhance capacity across some of the nation’s busiest and most congested rail corridors.

The four projects include:

Sambalpur–Jarapada (3rd and 4th Line)

Jharsuguda–Sason (3rd and 4th Line)

Kharsia–Naya Raipur–Parmlakasa (5th and 6th Line)

Gondia–Balharshah (Doubling Project)

Infrastructure to Boost Efficiency and Ease Congestion
According to the Cabinet’s statement, the projects are designed to increase line capacity, reduce congestion, and enhance overall operational efficiency. These routes play a critical role in moving freight and passengers across industrial and mining belts.

Vaishnaw emphasized that these initiatives would lead to improved mobility and service reliability for Indian Railways, especially in high-traffic regions that have long faced bottlenecks.

Project Breakdown by Region and Economic Impact
Chhattisgarh will see the construction of 278 route km of railway lines at a cost of Rs 8,741 crore, with an estimated boost of 38 million tonnes in cargo capacity.

In Maharashtra, the Gondia–Balharshah doubling project, with an outlay of Rs 4,819 crore, aims to ease congestion along critical North–South rail corridors.

Two projects in Odisha are intended to decongest heavily trafficked regions such as Talcher, Paradip, Sambalpur, and the strategic Howrah–Mumbai route, vital for coal and industrial supply chains.

Electrification and Employment: Sustainability with Scale
All four initiatives are designed as electrified projects, expected to reduce diesel usage by nearly 950 million litres, delivering a significant environmental dividend.

Vaishnaw also noted the projects will generate approximately 38 million human-days of employment, providing a boost to rural and semi-urban job markets.

In addition, the development will result in railway connectivity to 3,350 villages, impacting nearly 4.7 million residents, and improve access to 19 new railway stations, including outreach to two aspirational districts—Gadchiroli and Rajnandgaon.

Freight Growth and Long-Term Strategic Gains
During the announcement, Vaishnaw described the developments as “quantum jumps” in freight capacity. Enhanced infrastructure is expected to unlock a new phase of logistics growth for Indian Railways, particularly across eastern and central coal belts.

For market participants, particularly in the railway PSU segment, the Cabinet’s green light may serve as a near-term catalyst. Stocks like IRFC, RVNL, and RailTel have already seen positive investor sentiment on past announcements, and this latest policy boost could renew momentum.

With execution timelines and funding models yet to be detailed, analysts will watch for further clarity from the Ministry in the coming weeks. Nonetheless, the commitment to modernize and expand the backbone of Indian logistics signals another strong push toward infrastructure-led growth.