New Delhi, Sep 19 (IANS): The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the construction of new 205 km railway line between Budni and Indore (Mangaliyagaon) in Madhya Pradesh at an estimated cost of Rs 3261.82 crore.

The decision was taken at the meeting chaired by the Prime Minister Narendra Modi.

"The CCEA has approved to construct new line between Budni to Indore (Mangaliyagaon) with approximate length of 205.5 Km at an estimated cost of Rs 3261.82 crore," an official release said.

It said that the main purpose of this project is the development of backward area and reduction in travel time from Indore to Jabalpur as well as from Indore to Mumbai and towards southern side also, as this will reduce distance by 68 Kms compared to present available route via Bhopal.

According to the railway ministry the route would provide better transport facilities for public and industries in this area.

"It will also help to provide or generate employment opportunities in the area. The project will generate direct employment during construction for about 49.32 lakh man-days," it said.

The proposed line will take off from existing yard of Budni and will connect at Mangaliyagaon existing station of Western Railway near Indore.

The railway ministry said that 10 new crossing stations and seven new halt stations are proposed to be constructed enroute.

"The new line will serve Sehore, Dewas and Indore districts and will provide direct link from Budni to Indore bypassing the congested route of Bhopal-Itarsi including Ghat section from Budni to Berkheda," it said.

"This project is meant for development of backward area of this region and to provide connectivity to various towns or villages like Nasrullaganj, Khategoan and Kannod, where presently there is no railway connectivity," it added.