Strategically important railway line facing hurdles since decades
Chandigarh, April 6, 2025 (Bharat Khabarnama Bureau) – In a key infrastructural development for the Punjab state, the Union Ministry of Railways had completed the final location survey for the proposed Mohali-Rajpura railway line. However, the project, with an estimated cost of Rs 406 crore, has been on hold due to unresolved funding issues and the absence of a cost-sharing agreement with the Punjab government.
This has been revealed by the Union Minister for Railways Ashwini Vaishnaw in a written reply to an unstarred question raised in the Rajya Sabha by Member of Parliament and noted environmentalist Sant Balbir Singh. The MP had sought an update on the status of ongoing and proposed railway projects in the Punjab.
According to the minister, the 23.89-km-long new rail line aimed at to provide direct rail connectivity between SAS Nagar-Punjab’s administrative capital Chandigarh and a fast-growing economic hub Rajpura, a major junction on the Delhi–Amritsar and Ambala–Ludhiana corridors. This rail link is expected to significantly ease passenger and freight movement in Malwa region by offering a shorter, alternative route that bypasses the heavily congested Chandigarh railway station.
Despite the strategic importance of the project, Vaishnaw said it remains stalled. “Owing to low traffic projections, the Ministry requested the Punjab government to either share the cost of construction or provide land free of charge. With no positive response received on either proposal, the project is currently on hold,” he said.
Potential benefits and regional impact
Experts and planners believe the proposed Mohali-Rajpura rail link carries immense potential for economic integration and regional development. The line would not only connect the state capital directly to Punjab’s Malwa belt—home to major agricultural markets and industrial zones—but also serve as a crucial transit link for parts of southern Punjab, northern Rajasthan, and adjoining districts of Haryana.
Once operational, this corridor could facilitate faster movement of goods and raw materials to and from industrial clusters in Derabassi, Banur, Rajpura, and Bathinda benefiting small and medium enterprises. It would also provide a vital commuter link for daily travelers, students, patients and employees from Sangrur, Patiala, Fatehgarh Sahib, Ambala and Panchkula, enhancing regional mobility.
Moreover, the line would establish a direct rail route between Punjab’s industrial and administrative hub Mohali and Chandigarh and its central rail junction Rajpura, improving access to long-distance trains and boosting inter-state trade. The enhanced connectivity could also promote tourism circuits by linking heritage sites like Talwandi Sabo, Patiala and Fatehgarh Sahib with Chandigarh and Mohali more efficiently.
Status of other rail surveys in Punjab
The minister further informed the House that over the past three financial years—2022-23, 2023-24, and 2024-25—and in the ongoing fiscal year, Indian Railways has sanctioned 13 survey projects covering approximately 1,691 km in Punjab. These include proposals for new lines, capacity expansion and route modernization aimed at addressing both passenger and freight traffic needs.
Highlighting the challenges of rail infrastructure development, Vaishnaw underlined that project completion timelines are influenced by multiple factors such as land acquisition, forest clearances, utility shifting, statutory permissions, funding arrangements, and local law and order conditions.
The way forward
With mounting demand from public representatives, industrial stakeholders and civil society groups, there is renewed hope that the Centre and Punjab government would revisit the issue and explore viable models for cost-sharing or public-private partnership (PPP) to revive the project. Experts believe the strategic and long-term benefits of the Mohali-Rajpura rail corridor far outweigh the initial investment and could prove transformational for the economic landscape of southern Punjab and its bordering regions.
