A four party agreement is signed to lay down a new rail line between Indore and Manmad. It will reduce the distance between the two stations by 171 kilometer and travel time will cut short by four hour from 13 to 9 hours. It will connect the North and Central India with Mumbai, Pune, Bangalore and Chennai in a straight rail line.
At present travelers go by zig zag routes from Indore-Ratlam as Western Railway Delhi-Mumbai Section. It will speed up not only the passenger but goods movement also.
Beside time it will provide less fair and time in this new route. It will be a bypass travel in less cost and time. Presently the travel Indore to Mumbai is via Ratlam and Delhi-Mumbai section distance is 815 kilometers. The new line will reduce it to 644 kilometer.
The new line will be 176 kilometer in Madhya Pradesh and 186 kilometer in Maharashtra. The cost of the project the share of Jawaharlal Nehru Port Trust will be of 55 per cent and 15 per cent each of Indian Railway, Government of Madhya Pradesh and Maharashtra Government.
The Madhya Pradesh will contribute Rs.500 crore in the new line project but by way of cost of land and royalty the State will get back 400 crore rupees.