Union Cabinet approves expansion of civil enclave in Srinagar airport at Rs 1677 cr cost

Project to boost tourism, economic growth

Nod to renaming of Kerala as Keralam

NEW DELHI, Feb 24: The Union Cabinet on Tuesday approved the expansion of the civil enclave at the Srinagar International Airport at an estimated cost of Rs 1,677 crore.
The expansion of the civil enclave will mark a major milestone in strengthening aviation infrastructure and connectivity in the Kashmir Valley, an official release said.
“The project scope also includes the construction of barracks for security personnel.
“Operated by the Airports Authority of India within the Budgam Airbase of the Indian Air Force (IAF), the airport, designated as an international airport in 2005, is located approximately 12 km from Srinagar city,” it said.

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The decision taken at the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, was announced by Information & Broadcasting Minister Ashwini Vaishnaw at a briefing in the national capital.

It was also the first time that the Cabinet meeting was held at the Prime Minister’s new office, ‘Seva Teerth’.
The new civil enclave project, spread over 73.18 acres, will feature a state-of-the-art terminal building spanning 71,500 square meters, including 20,659 square meters of existing structure. The terminal building will be designed to serve 2,900 passengers during peak hours and an annual capacity of 10 million passengers per annum (MPPA).
“The expanded apron will accommodate 15 aircraft parking bays, including 1 wide-body (Code E) (9 existing and 6 proposed), while the 3,658m x 45m runway continues to be operated by the IAF. The project will also include the construction of multi-level car parking facility for 1,000 cars,” the release said.
Generally, a civil enclave refers to the area allotted at an airport belonging to any armed force for commercial flights.
According to the release, the project is expected to significantly boost tourism and economic growth by improving connectivity to iconic attractions, including Dal Lake, Shankaracharya Temple, and the Mughal Gardens, thereby generating employment opportunities, stimulating investment, and reinforcing Srinagar’s position as a premier tourist and economic destination.
The civil enclave will have various features such as advanced water harvesting systems, maximised natural lighting to reduce energy consumption, and the use of locally-sourced eco-friendly materials to minimize the carbon footprint.
“Architecturally, the new terminal will reflect a harmonious blend of modern design and the rich cultural heritage of Kashmir, incorporating traditional elements such as intricate woodwork and locally inspired craftsmanship while maintaining operational efficiency through streamlined passenger processing areas, spacious lounges, and advanced security and check-in facilities,” the release said.
The Cabinet Committee on Economic Affairs also approved three Railway ministry projects with a total cost of approximately Rs 9,072 crore.
The three projects include the doubling of the Gondia-Jabalpur section and the laying of the third and fourth lines between Punarakh-Kiul and Gamharia-Chandil sections.
The Government said that these projects covering eight districts across Maharashtra, Madhya Pradesh, Bihar and Jharkhand will increase the existing network of the Indian Railways by about 307 km.
“The proposed multi-tracking project will enhance connectivity to approximately 5,407 villages which have a population of about 98 lakhs,” an official statement said.
It added, “The increased line capacity will significantly enhance mobility, resulting in improved operational efficiency and service reliability for Indian Railways. These multi-tracking proposals are poised to streamline operations and alleviate congestion.”
The Union Cabinet also approved a proposal of Kerala Government to change the name of the state to Keralam, Union minister Ashwini Vaishnaw said.
The Union Cabinet chaired by the prime minister approved the proposal for alterating the name of state of Kerala as ‘Keralam’, Vaishnaw said.
After approval of Union Cabinet, the president of India will refer a Bill, namely the Kerala (Alteration of Name) Bill, 2026 to the State Legislative Assembly of Kerala for expressing its views under proviso to Article 3 of the Constitution of India.
After receipt of the views of the Kerala Legislative Assembly, the government of India will obtain the recommendation of the president for introduction of the Kerala (Alteration of Name) Bill, 2026 to alter the name of Kerala as ‘Keralam’ in Parliament, an official release said.
The Legislative Assembly of Kerala passed a resolution on June 24, 2024 to alter the name of Kerala to ‘Keralam’.
Meanwhile, the Union Cabinet approved a hike in the Minimum Support Price (MSP) of raw jute by Rs 275 to Rs 5,925 per quintal for the marketing season 2026-27.
The new MSP will ensure a return of 61.8 per cent over the all-India weighted average cost of production.
“The announced MSP of raw jute for Marketing season 2026-27 is in line with the principle of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production as announced by the Government in the Budget 2018-19,” Vaishnaw said.
The Union Cabinet also approved a proposal to increase the equity investment threshold of public sector enterprise Powergrid from Rs 5,000 crore to Rs 7,500 crore per subsidiary to enable it to bid for capital-intensive transmission projects.
“The CCEA has approved enhanced delegation to Powergrid under the guidelines dated February 4, 2010, of the Department of Public Enterprises (DPE) on delegation of powers applicable to ‘Maharatna’ CPSEs.
“The approval enhances the permissible equity investment limit of Powergrid from the current threshold of Rs 5,000 crore per subsidiary to Rs 7,500 crore per subsidiary, while retaining the existing cap of 15 per cent of the company’s net worth,” Vaishnaw said.
The approval will enable Powergrid, the largest and most experienced transmission service provider in the country, to expand its investment in its core business and support the evacuation of renewable energy capacity, helping achieve the target of 500 GW from non-fossil-based sources.
The Cabinet approved a 3.33-km extension of the existing North-South corridor of Gujarat Metro from GIFT City to Shahpur.
In a statement, the Government said that the project, which is scheduled to be completed in four years, includes three elevated stations.
“The estimated cost of the project is Rs 1,067.35 crore. This extended corridor is expected to benefit approximately 23,702 passengers in 2029 and approximately 58,059 passengers in 2041,” the statement stated. (PTI)