Ahmedabad: February 2026 witnessed a series of major announcements and developments related to infrastructure, industry and economic growth in Gujarat, coinciding with the presentation of both the Union Budget and the Gujarat State Budget. Several projects progressed from planning to execution, while new initiatives were announced across sectors including transport, energy, healthcare, urban development and industry.

Infrastructure and Industry Developments

One of the most significant milestones of the month was the commissioning of the first phase of Micron’s semiconductor manufacturing plant in Sanand, marking a major step toward India’s long-standing goal of domestic semiconductor production.

In the transport sector, while the Dholera Expressway began unofficial operations in December, the Surat–Navsari Expressway also commenced unofficial operations in January. During February, several additional connectivity projects progressed.

Tenders have been invited for a 105-km stretch of the Tharad–Ahmedabad Expressway, which will link the Amritsar–Jamnagar Expressway with the Ahmedabad–Mumbai Expressway. The stretch passes through Vav, Tharad, Banaskantha and Patan districts.

The Delhi–Mumbai Expressway is expected to be completed by 2027, as per the Union Minister of State for Road Transport and Highways, although experts believe the timeline may extend to 2028 due to ongoing tenders and construction progress.

Meanwhile, the Ahmedabad–Vadodara Expressway is set to be expanded to six lanes, with the National Highways Authority of India inviting tenders for preparation of the DPR.

High-Speed Rail and Metro Projects

The Mumbai–Ahmedabad Bullet Train project moved into a new phase, with the Systra-DB joint venture receiving the Project Management Consultancy (PMC) contract for signalling and ticketing systems. Railway Minister Ashwini Vaishnaw indicated that the first operational stretch of the bullet train could begin between Surat and Bilimora, possibly next year.

Additionally, seven new high-speed rail corridors were announced in the Union Budget. In the future, the Mumbai–Ahmedabad line will extend toward Pune, Hyderabad, Chennai and Bengaluru, while the alignment for the Ahmedabad–Delhi route has also been finalised.

In urban transit, the Surat Metro achieved a major milestone with the breakthrough of the Chowk Bazaar underground tunnel, and trial runs on one stretch may begin in the first half of the year.

The Union Cabinet also approved Rs 1,071 crore for Ahmedabad–Gandhinagar Metro Phase-2B, extending connectivity further toward active zones near GIFT City.

Budget Announcements and Economic Indicators

The Union Budget included proposals to develop Dholera, Lothal and Dholavira as experimental cultural destinations. The Gujarat government has also invited bids for preparing an Infrastructure Master Plan for Lothal through the Lothal Area Development Authority, covering planning for eight surrounding villages.

For GIFT City, the tax holiday has been extended from 10 to 20 years, enabling companies to plan long-term investments. Uday Kotak has also been appointed chairman of GIFT City to provide professional leadership.

Economic indicators also showed strong momentum. Vehicle sales in Gujarat increased by 27% in January, the data for which came in February, while GST collection grew by 19% year-on-year, reflecting strong economic activity.

Aviation and Airport Developments

Connectivity improvements were announced in aviation as well. SpiceJet launched direct flights from Ahmedabad to Sharjah, providing an alternative to Dubai routes. The Sri Lankan tourism minister also announced plans for a direct Ahmedabad–Sri Lanka flight to attract Gujarati tourists.

In North Gujarat, discussions are ongoing regarding a potential international airport in Tharad, while the Deesa Air Force Station is also being considered for civilian airport operations.

Airbus has established a Centre of Excellence in Gujarat focusing on sustainable aviation and indigenous research.

Urban Development and Local Infrastructure

The Sarkhej–Gandhinagar (SG) Highway will be redeveloped as an iconic corridor ahead of the proposed 2030 Commonwealth Games bid.

The Ahmedabad Municipal Corporation (AMC) presented a budget of Rs 18,518 crore, proposing several urban projects including:

• A giant Ferris wheel called “Ahmedabad Eye” on the Sabarmati Riverfront

• Glow gardens, bonsai gardens and floating solar plants on lakes such as Kankaria

• A cricket ground in Thaltej

• A Bio-CNG plant worth Rs 20 crore using cattle dung for fuel production

• A new super-specialty hospital and medical institute in Nikol

• New underpasses and urban infrastructure upgrades

AMC also plans to merge AMTS and BRTS services into a unified public transport authority with around 3,000 buses.

Energy, Environment and Utilities

The Gujarat government plans to set up solar power plants for municipalities to help reduce electricity expenses and ensure reliable power for water supply and street lighting.

The state’s peak power demand has tripled since 2002, reflecting industrial growth and increasing prosperity.

Projects announced in the state budget include:

• A floating solar plant at Kadana Dam worth Rs 150 crore

• Four Bio-CNG plants across different regions

• Five new GIDC industrial estates

• A Unified Digital Stack to simplify government services

• The Wire-Free City Mission to move overhead cables underground

Additionally, NTPC Green Energy commissioned a 165-MW solar project in Khavda, while the Jafraabad LNG FSRU project is now over 92% complete and expected to be operational by September 2026.

Industrial and Technology Initiatives

Several new industrial initiatives were announced or progressed during the month:

• L&T Vyoma signed an MoU to develop a hyper-scale AI data centre in Dholera.

• Tata AutoComp is expanding with two new manufacturing plants in Sanand.

• Arkel India inaugurated a Rs 100-crore lift control manufacturing facility in Vadodara.

• A five-acre plot in Sanand GIDC has been allocated for a luxury hotel, with a temporary five-star tent city planned for industrial visitors.

Transport and Rail Developments

Rail infrastructure also saw progress. The Gandhidham–Adipur railway line quadrupling has been completed and speed trials have begun. Indian Railways also tested stainless steel containers for transporting industrial salt in Gandhidham to prevent corrosion and improve logistics efficiency.

Drone technology was tested by Western Railway’s Vadodara Division for live inspection of overhead equipment.

In passenger services, Vande Bharat trains now connect 21 cities and towns in Gujarat, with the latest route linking Ahmedabad and Udaipur. Over 32 lakh passengers have travelled on Vande Bharat services in the past 13 months.

Health, Tourism and Cultural Projects

Health infrastructure received a boost, with 14 government hospitals set to receive MRI machines at a cost of Rs 178.54 crore. The Sola Civil Hospital super-specialty project worth Rs 400 crore is nearing completion and is expected to open by mid-2026.

Tourism infrastructure also saw progress:

• Foundation stone laid for the Rs 950-crore Shakti Corridor in Ambaji connecting the temple and Gabbar Hill

• Plans for a multi-modal transport hub in Somnath

• A Rs 27-crore cricket stadium to come up in Gandhinagar

• Development of the National Maritime Heritage Complex in Lothal in collaboration with Israel

Other Key Developments

Additional notable updates include:

• Three new flyovers planned in Surat

• Bhavnagar introducing new electric buses

• Completion nearing for the Kharicut Canal Phase-1 road corridor in Ahmedabad

• Upgrading NH-41 between Kandla and Mundra to six lanes

• Expansion works worth Rs 647.20 crore for NH-56 in Valsad

In Kutch, authorities recorded 910 water bodies in revenue records to prevent illegal encroachments and reduce flood risks.

Meanwhile, the Surat Diamond Bourse has reportedly begun further operations, with about 100 traders starting business activities after multiple rounds of discussions.

Key Concerns

Despite progress, some concerns were raised during the Assembly session. Although Rs 300 crore had been allocated for the Kutch desalination project, no expenditure has been recorded over the past two years. The project is considered important for ensuring water security in drought-prone years.

Overall Assessment

Overall, February 2026 proved to be a highly active month for Gujarat’s infrastructure and economic landscape, with projects moving forward at various stages—from planning and tendering to construction and commissioning. Among the most notable milestones were the launch of Micron’s semiconductor facility in Sanand and the introduction of the Ahmedabad–Udaipur Vande Bharat train service, both seen as key developments in the state’s ongoing industrial and connectivity expansion. DeshGujarat