The Cabinet Committee on Economics Affairs (CCEA) has recently approved projects worth Rs. 24,000 crore in order to improve connectivity across nine states. The main objective of this initiative is to develop railway network in the country. The states that are covered in this project are: Andhra Pradesh, Assam, Chattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana and Utter Pradesh. CCEA approval has also been received for the development of 1,120 Km of National Highways in and across Bihar, Karnataka, Odisha, Rajasthan and West Bengal. The estimated budget for this project is Rs. 6,461 crore.
The project under which the railway networks are going to be extended is sure to facilitate the upcoming industries in these regions by providing additional transport capacity to meet their requirements. This project will also help Indian railway to earn better revenues. And the second project related to the development of roads will ensure safe and fast traffic movements on the proposed national highways as these stretches are mostly located in backwards regions.
Although the ulterior motive of the government behind these two projects is to improve commutability across regions and remove traffic bottlenecks, but at the same time, it will also give a major boost the real estate sector. This is so because whenever one thinks about buying a property, the first thing that he/she considers is whether the place is well connected by roads and railway. Thus connectivity becomes the key factor for evaluation of real estate. But unfortunately, there are many places in India that have huge inventory piled up just because of poor transport facilities. The real estate market in such belts has not yet realised its true potential primarily because of lack of proper connectivity. And this issue is all the more grave in remote areas of states like Assam, Chattisgarh, and Jharkhand.
As major cities have already become overpopulated, it is also high time that the government creates new centres that can accommodate the rising headcount. The situation is not too different in the case of industries as well. Therefore, for equal distribution of population and industrial developments, good communication is absolutely necessary.
And these two projects taken up by the government will surely remove a lot of connectivity hurdles. Completion of these projects will lead to better transport facilities which will increase the value of real estate land and properties in these areas. Nevertheless, all hopes depend on the efficiency with which these plans are implemented.