Budget'26:New dedicated freight corridor to link Gujarat and Bengal

Union Finance Minister Nirmala Sitharaman on Sunday announced a new Dedicated Freight Corridor (DFC) connecting Dankuni in West Bengal with Surat in Gujarat, unveiling a major rail infrastructure push in the Union Budget 2026–27.The proposed corridor will pass through several states across eastern and western India, strengthening freight movement between Gujarat’s industrial clusters and the eastern region. The project is expected to lower logistics costs, ease congestion on passenger rail routes, and improve the efficiency of goods transportation for key sectors such as manufacturing, mining, and agriculture.
With this announcement, the government aims to bridge India’s existing freight rail networks. At present, India operates two dedicated corridors—the Eastern DFC from Ludhiana to Dankuni and the Western DFC from Dadri to Jawaharlal Nehru Port. The new Dankuni–Surat corridor will effectively link these routes, creating a continuous freight spine that enhances connectivity across northern, central, and eastern India.Officials indicated that the integrated corridor network would help industries achieve faster transit times and more reliable supply chains, while also supporting the expansion of industrial corridors and logistics parks along the route.The move is in line with the Centre’s infrastructure-led growth strategy and the objectives of the National Logistics Policy, which seeks to bring down India’s logistics costs from the current 14–16 per cent of GDP to single-digit levels. The government sees improved rail freight capacity as a critical lever in boosting India’s manufacturing competitiveness and export potential.

(State Correspondent)