In the Union Budget 2026-27, Maharashtra has been allocated a substantial Rs 1 lakh crore for various development projects. Within this massive outlay, the Vidarbha region has received a specific allocation of Rs 10,000 crore, excluding overlapping development expenditures. This figure represents approximately 10% of the direct funds designated for the region, according to a preliminary analysis of the expenditure profile. Government officials have indicated that a more detailed interpretation of the budget documents might reveal additional financial provisions for Vidarbha.
Metro Rail Allocations: Nagpur Notably Absent
Finance Minister Nirmala Sitharaman announced a significant corpus of Rs 28,740 crore for Metro rail projects across India. The allocation document specifically mentioned major cities including Mumbai, Pune, Delhi, Bhopal, Chennai, and Bengaluru. However, there was no explicit mention of Nagpur Metro in the finance minister's speech or the initial allocation details.
Despite this omission, Mahametro officials remain hopeful that Nagpur Metro Phase-2 will receive approximately Rs 520 crore from the total Metro allocation, in addition to potential loan component transfers. Sources familiar with the matter revealed that Mahametro secured Central budgetary support last year based on project requirements. This year, the corporation has also requested over Rs 500 crore for Pune Metro and Rs 300 crore for Thane Metro projects.
"Metro Rail corporations in different states receive allocations from the central kitty based on completed work and submitted demands," explained a source familiar with the allocation process.
Transport Infrastructure: Mixed Developments
Missing Railway Corridor
While the finance minister announced seven new high-speed railway corridors, the much-anticipated Nagpur-Mumbai railway project did not feature in the budget announcements. This project had been proposed by the railways back in 2022, making its absence from the current budget particularly notable for regional development advocates.
Samruddhi Mahamarg Intelligent Traffic System
The budget proposes an allocation of Rs 680 crore for implementing an intelligent traffic management system (ITS) on the Samruddhi Mahamarg, the expressway connecting Nagpur and Mumbai. This allocation is earmarked for the 2025-26 fiscal year.
Interestingly, this represents a continuation of funding for the project. Last year, a revised estimate of Rs 680 crore was established against an initial budget estimate of Rs 273 crore. For 2026-27, the budget documents once again show the same Rs 680 crore allocation for this intelligent transportation initiative.
Defence Sector Allocations Continue
The Union government has maintained its support for the region's defence manufacturing sector through continued allocations to public sector undertakings. Yantra India Limited, the Nagpur-based defence PSU specializing in ammunition hardware production, has received a capital outlay allocation of Rs 228 crore.
Additionally, Munitions India Limited, another defence public sector undertaking with operations in Vidarbha, has been allocated Rs 745 crore toward capital outlay. These allocations demonstrate the government's ongoing commitment to strengthening the defence manufacturing ecosystem in the region.
The budget allocations reveal a mixed picture for Vidarbha's development priorities. While specific funds have been earmarked for the region and certain infrastructure projects continue to receive support, the absence of explicit mentions for key transportation projects like Nagpur Metro Phase-2 and the Nagpur-Mumbai railway corridor has raised questions among regional stakeholders about the comprehensive development vision for this important part of Maharashtra.
