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New Delhi: The Union Cabinet on Thursday approved a sum of \u20b9<\/span>7,798 crore for two railway connectivity projects and a venture capital (VC) fund to boost India’s space economy.<\/p>\n<\/div>\n One rail project runs from Narkatiaganj to Darbhanga, covering 256km, and the other from Errupalem and Namburu via Amaravati, covering 57km. The projects will be completed over the next five years.<\/p>\n<\/div>\n \u201cThe 256km railway project will benefit Uttar Pradesh and North Bihar. It will be vital for Indo-Nepal trade, connecting the inland container depot at Birgunj, Nepal. It will fasten movement of foodgrains, fertilizers, cement, containers, etc. The other railway project will improve connectivity of central and northern India with southern India, with direct connectivity between Amravati, Hyderabad, Chennai and Kolkata,\u201d Union railway minister Ashwini Vaishnaw said, briefing reporters about the cabinet decisions.<\/p>\n<\/div>\n Also read | <\/i>Cabinet raises support prices for farmers, allowance for govt staff, pensioners<\/i><\/p>\n<\/div>\n Additionally, capacity augmentation works will result in additional freight traffic of 31 million tonnes per annum. The railways, being an environment-friendly and energy-efficient mode of transportation, will help in achieving climate goals and minimizing logistics cost, lowering CO2 emissions by 1.68 billion kg, which is equivalent to planting 70 million trees.\u00a0<\/p>\n<\/div>\n These projects will generate 10.6 million human days of employment, the minister said.<\/p>\n<\/div>\n The projects fall under the PM-Gati Shakti national masterplan for multimodal connectivity, which has been possible through integrated planning and will provide seamless connectivity for moving people, goods and services.<\/p>\n<\/div>\n Vaishnaw said 7,000 special trains are being run ahead of Diwali and Chhath Puja, accommodating an additional 200,000 people against last year\u2019s 4,500 special trains.<\/p>\n<\/div>\n Also read | <\/i>7th Pay Commission: Cabinet clears 3% DA hike for central govt employees ahead of Diwali<\/i><\/p>\n<\/div>\n The space economy VC fund, which is aimed at driving economic growth and job creation, will also be developed over the coming five years, with proposed investments of \u20b9<\/span>10-60 crore each in 30-35 space startups over the next 10 years.<\/p>\n<\/div>\n It will be structured as per Sebi guidelines for alternative investment funds.<\/p>\n<\/div>\n \u201cThe number of startups is just a goal\u2014it is not restrictive. The amount will be in two phases. In the first phase, it will be \u20b9<\/span>5-10 crore, and in the later phase it will be \u20b9<\/span>10-60 crore. The number can grow based on the company type and its profile. We will be transparent in evaluation, selection of the companies and a fund manager will be operating the fund,\u201d Indian Space Research Organisation chairman Sreedhara Panicker Somanath who was also present at the press briefing said.<\/p>\n<\/div>\n \u201cThis decision will push India to stand alongside developed nations like the UK, US, Germany, France, etc. Through this, young entrepreneurs and scientists will get an opportunity,\u201d the railway minister said.<\/p>\n<\/div>\n At present, India\u2019s space economy is about \u20b9<\/span>70,000 crore, which is likely to grow to \u20b9<\/span>3.5 trillion by 2033. There are already 250 startups in the space sector, Vaishnaw said.<\/p>\n<\/div>\n Also read | <\/i>Cabinet clears extension of fortified rice scheme until December 2028 to combat anaemia<\/i><\/p>\n<\/div>\n<\/div>\n Catch all the Business News, Politics news,Breaking NewsEvents andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.<\/p>\nVC fund for space economy<\/h2>\n