Cabinet Approves ₹1,264 Crore Ballari–Guntakal Rail Expansion to Boost Freight, Tourism and Regional Connectivity
46-km Multi-Tracking Project Across Karnataka and Andhra Pradesh to Enhance Logistics Efficiency, Support Industry and Improve Access to Key Tourist Destinations by 2028-29Key HighlightsCabinet approves ₹1,264 crore Ballari–Guntakal 3rd and 4th rail line project.46 km

46-km Multi-Tracking Project Across Karnataka and Andhra Pradesh to Enhance Logistics Efficiency, Support Industry and Improve Access to Key Tourist Destinations by 2028-29
Key Highlights
- Cabinet approves ₹1,264 crore Ballari–Guntakal 3rd and 4th rail line project.
- 46 km of additional railway network to be developed across Karnataka and Andhra Pradesh.
- Project targeted for completion by 2028-29.
- Will improve connectivity for 99 villages with a combined population of around 7 lakh.
- Freight handling capacity to increase by 16.22 million tonnes per annum (MTPA).
- Better rail access to tourist attractions including Ballari Fort and Sri Kumara Swamy Temple.
- Expected to reduce logistics costs, save 1.32 crore litres of fuel, and cut 6.67 crore kg of CO₂ emissions.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the construction of the third and fourth railway lines between Ballari and Guntakal, a key infrastructure project aimed at enhancing rail capacity, freight movement and regional connectivity across Karnataka and Andhra Pradesh.
The project, with an estimated investment of ₹1,264 crore, is expected to be completed by 2028-29 and forms part of the PM Gati Shakti National Master Plan, which focuses on integrated multimodal transport planning and improved logistics efficiency.
Strengthening Rail Freight and Industrial Supply Chains
The Ballari–Guntakal corridor is an important freight route serving major industrial sectors. Once completed, the additional rail lines will significantly improve the transportation of commodities such as:
- Iron ore
- Iron and steel
- Coal
- Limestone
- Dolomite
- Fertilizers
- Food grains
The capacity enhancement is projected to support an additional freight movement of 16.22 million tonnes per annum (MTPA), helping industries reduce transportation costs while improving supply chain efficiency.
Improved Connectivity for Villages and Tourism
The rail expansion will directly benefit 99 villages with a combined population of nearly seven lakh, improving passenger mobility and regional accessibility.
The upgraded corridor is also expected to strengthen connectivity to popular tourist destinations, including:
- Ballari Fort
- Sri Kumara Swamy Temple
Improved rail accessibility could encourage higher tourist footfall while supporting local hospitality businesses, transport operators and small enterprises in the region.
Environmental Benefits
The government estimates that the project will contribute significantly to India’s sustainability goals by shifting more freight from road to rail.
Expected environmental gains include:
- Saving approximately 1.32 crore litres of fuel
- Reducing 6.67 crore kilograms of CO₂ emissions
- Environmental benefits equivalent to planting around 0.27 crore trees
The project aligns with India’s broader strategy to promote rail transport as an energy-efficient and environmentally friendly mode of logistics.
Boost to Regional Development
According to the government, the multi-tracking project will improve operational efficiency, ease congestion on one of the important freight corridors and enhance service reliability across the railway network.
The project is also expected to generate employment during construction while creating long-term economic opportunities for industries, logistics providers and local communities, supporting the government’s vision of regional development under the PM Gati Shakti initiative.
Hospitality & Tourism Impact
The Ballari–Guntakal rail capacity expansion is expected to benefit the tourism and hospitality sectors by improving rail access to heritage and pilgrimage destinations such as Ballari Fort and Sri Kumara Swamy Temple. Better connectivity can encourage domestic tourism, increase visitor arrivals and support hotels, restaurants, transport operators and local businesses across Karnataka and Andhra Pradesh. Enhanced freight movement will also strengthen supply chains for food, beverages and hospitality procurement by reducing logistics costs and improving delivery efficiency.