The Union Cabinet on Wednesday approved two landmark infrastructure projects for Varanasi, paving the way for an extensive elevated road network along the Ganga and Varuna rivers with a combined investment of nearly Rs 25,500 crore. The projects, approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, aim to decongest one of India's busiest pilgrimage cities, significantly improve connectivity, and reduce travel time for commuters and visitors.
In another major decision, the Cabinet also approved the India Semiconductor Mission (Semicon) 2.0 with an outlay of Rs 1.27 lakh crore, marking a significant push towards building a self-reliant semiconductor ecosystem and strengthening India's position in the global electronics supply chain.
The two elevated highway corridors will be developed under the Hybrid Annuity Model (HAM), a public-private partnership (PPP) model primarily used by the National Highways Authority of India (NHAI) for highway development. Under HAM, the government bears a substantial portion of the project cost while the private developer finances the remainder and undertakes construction and maintenance.
The first project involves the construction of a 43-kilometre 6/4-lane elevated corridor along the banks of the Varuna River at an estimated cost of Rs 10,998 crore.
The corridor will connect NH-31 with the Varanasi Ring Road and include extensive supporting infrastructure such as flyovers, loops, ramps, and service roads alongside the main carriageway. The project is expected to streamline traffic movement across northern parts of the city while improving access to key national highways.
The second project comprises a 46-kilometre six-lane elevated corridor along the river Ganga with an estimated investment of Rs 14,448 crore.
This corridor will connect NH-19 across Varanasi and Chandauli districts with the Varanasi Ring Road. Apart from the elevated highway, the project includes an iconic cable-stayed bridge, an extradosed foot overbridge-cum-major bridge, along with loops, ramps, link roads and service roads.
The government said the project will substantially ease traffic congestion on NH-19 (Prayagraj-Varanasi), BHU-Ramnagar Road, and NH-35 (Varanasi-Mirzapur), providing smoother movement for both local commuters and long-distance traffic.
Varanasi, one of the world's oldest living cities and a major religious destination, attracts nearly 150 million tourists and pilgrims annually. The city has witnessed a steady increase in visitor numbers over the past decade, putting immense pressure on its existing road infrastructure.
According to the government, the elevated corridors are expected to dramatically reduce congestion and improve travel efficiency. One of the most significant benefits will be a reduction in average travel time across the affected stretches from around 60 minutes to just 20 minutes, enhancing the overall commuting experience and supporting tourism-driven economic activity.
The projects are also expected to strengthen regional connectivity, improve logistics movement, and complement ongoing urban development initiatives in and around Varanasi.
Alongside the Varanasi infrastructure projects, the Union Cabinet approved the India Semiconductor Mission 2.0 with a budgetary allocation of Rs 1.27 lakh crore.
Announcing the decision, Union Electronics and Information Technology Minister Ashwini Vaishnaw said the new scheme is expected to attract investments worth nearly Rs 4 lakh crore while generating semiconductor production valued at approximately Rs 2 lakh crore during the implementation period.
The minister stated that Semicon 2.0 will be built around six strategic pillars, with the design of semiconductor chips forming the first and foundational pillar. The programme will focus on the design, development and manufacturing of indigenous semiconductor chips, strengthening India's domestic capabilities across the semiconductor value chain.
The initiative is aimed at reducing dependence on imports, encouraging innovation, creating high-skilled employment, and positioning India as a competitive global hub for semiconductor manufacturing and chip design.
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