The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, approved the Ahmedabad (Sarkhej) – Dholera semi high-speed double line project by the Ministry of Railways, with a total estimated cost of Rs 206.67 billion (Rs 206.67 bn). The project will be Indian Railways first semi high-speed scheme planned with indigenously developed technology. The line is expected to be completed by 2030-31 and is designed to provide faster connectivity between Ahmedabad, Dholera SIR, the upcoming Dholera Airport and the Lothal National Maritime Heritage Complex.

Connecting Ahmedabad with Dholera will reduce passenger travel time, enabling comfortable daily commuting and same-day return trips, and is intended to improve mobility and service reliability for Indian Railways. As the country first semi high-speed rail project, it will act as a reference model for phased expansion of similar services across India. The project has been planned under the PM-Gati Shakti National Master Plan with an emphasis on multi-modal connectivity and integrated planning with stakeholders.

The section covering Ahmedabad district in Gujarat will increase the existing network of Indian Railways by about 134 kilometres (km) and will enhance connectivity to approximately 284 villages. Those villages have a combined population of about 0.5 million (0.5 mn), and the project is expected to support regional development and expand employment and self-employment opportunities. Planners have highlighted the prospect of better logistics efficiency for movement of people, goods and services.

Rail transport being environment friendly and energy efficient is projected to contribute to national climate goals while lowering logistics costs. The scheme is estimated to reduce oil imports by 4.8 million litres and to lower carbon dioxide emissions by 20 million kg (20,000 t), benefits that have been equated with planting one million trees (1 mn trees). The authorities have stated the project will be completed by 2030-31 and will serve as a catalyst for comprehensive development in the region.