New Delhi: The Union Cabinet has approved two major national highway projects worth ₹14,115 crore, aimed at improving road connectivity in Delhi and Uttar Pradesh. The projects include a new tunnel connecting the Dwarka Expressway with Vasant Kunj in Delhi and an access-controlled highway between Kanpur and Kabrai in Uttar Pradesh.
The decisions were announced after the Cabinet meeting by Union Information and Broadcasting Minister Ashwini Vaishnaw.
Delhi to Get 8.1-km Tunnel
The Cabinet approved the construction of an 8.1-kilometre, six-lane tunnel on NH-148AE, linking the Dwarka Expressway with Nelson Mandela Marg in Vasant Kunj. The project is estimated to cost ₹6,969.67 crore and is expected to ease traffic congestion while improving connectivity to the national capital’s airport and surrounding areas.
Kanpur-Kabrai Highway Approved
The second project involves the development of the 117.7-km Kanpur-Kabrai section of NH-34 into a four/six-lane access-controlled highway. The project has been approved at an estimated cost of ₹7,145.14 crore and is expected to enhance transportation across central Uttar Pradesh.
Infrastructure Projects Face Cost Overruns
The Cabinet approvals come as the latest report from the Ministry of Statistics and Programme Implementation (MoSPI) highlights rising costs in India’s infrastructure sector.
According to the May 2026 report, 1,987 infrastructure projects worth over ₹150 crore each are under implementation across 17 ministries. The projects have recorded cumulative cost overruns of approximately ₹5.4 lakh crore, with the revised project cost increasing to ₹42.50 lakh crore from the original estimate of ₹37.09 lakh crore.
The report also noted that total expenditure has reached ₹21.82 lakh crore, representing 51.34% of the revised project cost, while 817 projects have achieved more than 80% physical progress.
No Decision on Ethanol Blending Programme
The Cabinet did not announce any decision regarding the 20% Ethanol Blended Petrol (E20) programme.
The development comes a day after the Union government rejected media reports claiming it had informed the Supreme Court that the E20 programme was still an experimental initiative. The government clarified that the reports misrepresented the submissions made by Attorney General R. Venkataramani, with the Ministry of Law and Justice describing the reports as “completely false.”
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