The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the Ahmedabad (Sarkhej)–Dholera semi high-speed double line railway project at an estimated cost of around Rs 20,667 crore.

The 134-km project in Gujarat will be the first semi high-speed rail project of Indian Railways to be developed using indigenous technology.

The proposed rail corridor is expected to significantly improve connectivity between Ahmedabad, the Dholera Special Investment Region (SIR), the upcoming Dholera Airport and the Lothal National Maritime Heritage Complex. The project is also aimed at reducing travel time and enabling convenient daily commuting and same-day return travel between the two cities.

According to the government, the project will serve as a model for future expansion of semi high-speed rail corridors across the country. It is aligned with the PM Gati Shakti National Master Plan and focuses on improving multimodal connectivity and logistics efficiency through integrated infrastructure planning.

The railway line is expected to improve mobility and connectivity for nearly 284 villages with a combined population of around five lakh people. The government said the project would contribute to regional economic development and create employment and self-employment opportunities in the area.

The ministry also highlighted the environmental benefits of the project, stating that the new rail corridor would help reduce oil imports by around 0.48 crore litres and cut carbon emissions by nearly 2 crore kilograms, equivalent to planting about 10 lakh trees.