Cabinet approves ₹14,115 crore for Uttar Pradesh highway, Delhi tunnel

The Cabinet cleared a plan for a 6,970-crore eight-kilometre, six-lane tunnel in Delhi and a 7,145-crore 242-kilometre access-controlled highway connecting Kanpur and Kabrai in Uttar Pradesh

Manas Pimpalkhare
Updated1 Jul 2026, 06:11 PM IST
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Big Cabinet Announcement: 8 Km Dwarka Tunnel In Delhi To Connect Dwarka Expressway To Vasant Kunj

NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved two major road infrastructure projects worth over 14,000 crore.

The CCEA, chaired by Prime Minister Narendra Modi, cleared a plan for a 6,970-crore 8km, six-lane tunnel in Delhi and a 7,145-crore 242km access-controlled highway connecting Kanpur and Kabrai in Uttar Pradesh, according to union minister Ashwini Vaishnaw.

The Kanpur-Kabrai project will improve connectivity between Uttar Pradesh's industrial hubs and the mineral-rich, manufacturing and agricultural regions of Madhya Pradesh. It will initially be built as a four-lane highway, with structures designed for future expansion to six lanes.

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It will reduce the travel time between Kanpur and Kabrai to 1.5 hours from 3.5 hours, allowing speeds of 80-100km per hour, the statement said.

The highway will comprise a 118km greenfield stretch and a 124km brownfield section which will be strengthened. The highway will be built under a build-operate-transfer (BOT) toll model and will be completed in 2.5 years. The highway will cater to annual average daily traffic of 18,069 passenger cars by FY28, the statement said.

“Aligned with the PM GatiShakti National Master Plan, the project will improve connectivity to 16 Economic Nodes, including the Unnao, Banther, Pankhi, Rania, Jainpur, Rooma, Chakeri, Sumerpur and Bhuragarh Industrial Areas, Trans Ganga Integrated Township, Growth Centre Jaipur, Kanpur Nagar Node and Bengal Chemicals & Pharmaceuticals Ltd,” the statement said.

India currently has 146,572km of national highways.

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Meanwhile, the tunnel in Delhi will connect the Dwarka Expressway in West Delhi with Vasant Kunj in South Delhi, reducing traffic congestion on existing roads. It is expected to cater to 37,000 cars every day once completed, and will provide connectivity to six PM GatiShakti economic nodes and four logistics nodes, said Vaishnaw, minister of electronics and IT, and railways, during a press briefing.

“This tunnel will be a big boon for Delhi. It will reduce congestion near the Delhi airport, and will become a new artery for the national capital,” he said.

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Of the tunnel's 8.1km length, 3.1km will pass beneath the southern ridge forest to minimise ecological disruption. The project will be executed under the hybrid annuity mode (HAM) and is scheduled for completion in five years, said Vaishnaw.

The approvals come a day after Modi chaired a review meeting with central government secretaries on deregulation reforms and building a self-reliant India, news agency PTI reported on 30 June.

About the Author

Manas is a New Delhi-based journalist with Mint, where he covers the intersection of economic policy, industry, and emerging sectors shaping India’s growth. He writes on government regulation, manufacturing, and the clean energy transition, with particular depth in areas such as electric mobility, battery ecosystems, and rare-earth supply chains. He has written on India’s efforts to build domestic capacity in electric vehicles and energy storage, as well as the broader push to reduce import dependence and strengthen supply chain resilience. His reports are not limited to capturing the headline; they also aim to explain complex policy simply.<br><br>Manas has studied law in Pune, the city where he grew up, followed by a business journalism diploma from the Asian College of Journalism in Chennai. In his almost two years of being a correspondent for Mint, Manas has reported as major wars unfolded, a general election brought surprises for both the ruling party and the Opposition, and three Union Budget announcements where India has charted its economic course for the days to come.<br><br>On vacation, Manas plays bass guitar with his friends in Space & Co, their jam-rock band. He also likes cats, and occasions of late-night snacking.

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