Cabinet Approvals on August 12, 2025

On August 12, 2025, the Union Cabinet chaired by Prime Minister (PM) Narendra Modi approved the following proposals:

• Approves the implementation of the Phase-1B of the Lucknow Metro Rail Project in Uttar Pradesh (UP) with an outlay of Rs. 5801 crores.
• The Cabinet Committee on Economic Affairs (CCEA) approved an investment of Rs. 8,146.21 crores for the Tato-II Hydro Electric Project in Shi Yomi District, Arunachal Pradesh (AR).

Lucknow Metro Rail Project of Phase-1B:

Approval: The Union Cabinet approved Phase-1B of the Lucknow Metro Rail Project in Lucknow, UP, covering 11.165 kilometres(km) with 12 stations of 7 underground and 5 elevated.

Outlay: The total project outlay is Rs. 5,801 crores. Upon completion, the city will have an active metro rail network of 34 km.

Enhanced Connectivity:

Phase-1B will connect densely populated and historically significant areas lacking efficient transport links, including:

Commercial hubs: Aminabad, Yahiyaganj, Pandeyganj, Chowk

Healthcare facilities: King George’s Medical University (Medical College)

Tourist attractions: Bara Imambara, Chota Imambara, Bhool Bhulaiya, Clock Tower, Rumi Darwaza

Culinary destinations: Culinary hotspots renowned for Lucknow’s heritage cuisine

Benefits:

Traffic Decongestion: The metro will provide an efficient alternative to road transport, will decongest Old Lucknow’s busiest routes and reduce travel time.

Environmental Impact: Shift from road/fossil-fuel transport to metro is expected to reduce carbon emissions.

Economic Growth: Enhanced connectivity to airports, railway stations, and bus depots will stimulate local business activities and attract investments.

Social Impact: Improved access to essential services and equitable public transport options for all socio-economic groups.

700 MW Tato-II Hydro Electric Project in Shi Yomi District of AR:

Approval:The CCEA approved an investment of Rs. 8,146.21 crore for the Tato-II Hydro Electric Project (HEP) in Shi Yomi district, AR.

• The project is expected to be completed in 72 months.

Project Specifications:

Installed Capacity: 700 MW (4 x 175 MW)

Annual Energy Generation: 2,738.06 million Units (MU)

Implementing Agency: Joint Venture(JV) between North Eastern Electric Power Corporation Limited (NEEPCO) and the Government of AR.

Financial Support:

Budgetary Support: Rs. 458.79 crore for construction of roads, bridges, transmission lines.

Central Financial Assistance: Rs. 436.13 crore towards equity share of the state government.

Benefits:

State Revenue: 1% for the Local Area Development Fund (LADF) and 12% free power to the state

Infrastructure Development: Construction of 32.88 km of roads and bridges, along with hospitals, schools, marketplaces, and playgrounds funded from Rs. 20 crore dedicated project funds.

Employment: Direct and indirect jobs for local workers, benefiting Micro, Small, and Medium Enterprises (MSMEs).

National Grid Balancing: The project will strengthen power supply in AR and contribute to national energy stability.

• Supports domestic industries and local suppliers aligning with Aatmanirbhar Bharat Abhiyan

Recent Related News:

In July 2025, the Union Cabinet approved the Research Development and Innovation (RDI) scheme with a corpus of Rs.1 lakh crore, with an aim to bolster India’s research and innovation ecosystem.

• The RDI scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to increase private sector investment in RDI