CCEA - Cabinet Committee on Economic Affairs

Cabinet Committee on Economic Affairs (CCEA)

🏛️ What is CCEA?

• CCEA is one of the eight Cabinet Committees under the Government of India.
  
  

• It is an extra-constitutional body (not mentioned in the Constitution) but plays a key role in economic policymaking.
  
  

• Constituted under the Government of India (Transaction of Business) Rules, 1961.
  
  

• Chaired by the Prime Minister and composed of key Cabinet Ministers related to the economy, infrastructure, and national growth.

🧩 Objectives of Cabinet Committees (including CCEA)

• Reduce the workload of the Union Cabinet.
  
  

• Allow in-depth examination of complex issues before placing them in the Cabinet.
  
  

• Promote division of labour and effective delegation.
  
  

• Frame policy proposals and sometimes take direct decisions (subject to Cabinet review).
  
  

🏗️ List of Cabinet Committees

1. Appointments Committee of the Cabinet
   
   

2. Cabinet Committee on Economic Affairs
   
   

3. Cabinet Committee on Political Affairs
   
   

4. Cabinet Committee on Investment and Growth
   
   

5. Cabinet Committee on Security
   
   

6. Cabinet Committee on Parliamentary Affairs
   
   

7. Cabinet Committee on Employment & Skill Development
   
   

8. Cabinet Committee on Accommodation
   
   

Note: All committees except (i) Cabinet Committee on Parliamentary Affairs and (ii) Cabinet Committee on Accommodation are headed by the Prime Minister.

👥 Composition of CCEA

Designation	Member
Chairperson	Prime Minister
Member	Defence Minister
Member	Home Affairs Minister
Member	Road Transport & Highways Minister
Member	Finance Minister
Member	Agriculture Minister
Member	External Affairs Minister
Member	Commerce & Industry Minister
Member	Education Minister

⚙️ Role & Importance of CCEA in Economic Growth

• Final approving authority for large-scale economic projects.
  
  

• Reviews and clears infrastructure projects, subsidies, price policy, investment clearances.
  
  

• Plays a decisive role in India’s economic trajectory, including PM Gati Shakti and Make in India initiatives.
  
  

• Acts as the top body for:
  
  

• Strategic disinvestment decisions (e.g., BPCL, Air India)
  
  

• Export-import policy direction
  
  

• Major subsidies and procurement decisions
  
  

🚆 Role of CCEA in Indian Railways

• Approves major rail infrastructure projects like:
  
  

• New lines
  
  

• Doubling
  
  

• Electrification
  
  

• Station Redevelopment
  
  

• Examples:
  
  

• July 2025 – Sanctioned ₹11,169 crore for 4 multi-tracking projects across 6 states.
  
  

• June 2025 – Cleared ₹6,405 crore for Ballari–Chikjajur and Koderma–Barkakana doubling.
  
  

• Jiribam–Imphal Line (₹12,000+ crore)
  
  

• Dedicated Freight Corridor (DFC) (₹80,000+ crore)
  
  

• Enhances freight movement, decongestion, and supports national logistics plans.
  
  

💰 Financial Sanction Thresholds

Project Value	Approval Authority
Up to ₹100 crore	Railway Board
₹100 – ₹500 crore	Ministry of Railways + Ministry of Finance
Above ₹500 crore	Cabinet Committee on Economic Affairs (CCEA)
Mega Projects	Always require CCEA approval (e.g., ₹1000+ crore)

Defined as per the Delegation of Financial Powers Rules (DoE, 2024)

📜 Legal vs. Non-Legal Standing

Entity	Legal Status	Constitutional Article
Council of Ministers (COM)	Constitutional	Articles 74 & 75
Cabinet Committees	Extra-Constitutional	Created under executive rules, not Constitution

Despite being non-constitutional, Cabinet Committees like CCEA wield great practical influence.

🧭 Summary Table

Feature	Details
Full Name	Cabinet Committee on Economic Affairs
Chaired by	Prime Minister
Type	Extra-constitutional Cabinet Committee
Purpose	Economic & infrastructure approvals, inter-ministerial coordination
In Railways	Sanctions ₹500 crore+ projects
Examples	DFC, Imphal Line, Gati Shakti-linked projects
Power	Final sanction for major public sector investments and subsidies

Key points for MCQ - CCEA

1. CCEA stands for Cabinet Committee on Economic Affairs

2. An extra Constitutional body

3. Constituted under the Govt of India (Transaction of Business) Rules, 1961

4. Chaired by Prime Minister of India

5. One among 8 Cabinet Committees

6. Projects - Up to Rs. 100 Crores - Railway Board sanction

7. Projects - Rs.100 Crores to Rs.500 Crores - Finance Ministry sanction

8. Projects - Rs. 500 Crores and above - CCEA sanction

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Konkan Railway

Konkan Railway

·         Missing link between Mumbai and Mangalore.

·         740 Kms

·         KRCL - Konkan Railway Corporation Limited

·         Govt of India Undertaking

·         Hqrs -CBD (Central Business District),  Belapur in Navi Mumbai

·         Connects Maharashtra, Goa, Kerala and Karnataka

·         First train flagged off on 26.01.1998

·         No of Stations - 67

·         Broad Guage (1.676mm)

·         Total Cost - Rs. 3555 Crores

·         Total Staff - 5300

From	To	Saving in distance (Kms)	Saving in Time ( In Hrs)
Mumbai	Mangalore	1127	26

 

·          Organization: CMD plus 13 Directors.

·         RO-RO - Roll-on Roll-off service - in 1999. The first of its kind in India, allowed loaded trucks to be transported on Railway Wagon flatcars.

·         There is NH-66 passing through same route. Truck drivers find it extremely difficult to drive loaded trucks through ghats, undulating surfaces, narrow roads and poor road and weather conditions. The KRCL came with concept of RORO, where loaded trucks are moved on wagons and are traveled by train. This has helped in saving of fuels, decrease in wear and tear of lorries (trucks), relief to drivers of driving in extreme conditions, can reach faster to destination. This also helps in decongestion of roads and lowering of pollution. This concept has been beneficial for both truck operators and KRCL. 

• 100 Percent electrification from Roha (Maharashtra) to Thokur (Karnataka)  -740 Kms at a cost of Rs. 1280 Crores

Beginning

·          Initiated in the year 1971

·         1984 - Final Location Engineering cum Traffic survey

·          1988 - Survey report submitted to Railway Board.

·          Arranging funds for such mega project - very tough one.  so Dr. Bimal Jalan, then Economic Adviser to the Finance Minister, suggested the idea of a Corporation with the Centre and beneficiary states .

·         1990 - Sri E Sreedharan, who was retired as Member, Engineering, was chosen the First Chairman & MD of the Konkan Railway.

·         19.07.1990 - KRCL - Konkan Railway Corporation Limited  - incorporated as a Public Limited Company under the Companies Act, 1956.

·         First time, Govt of India had departed from its policy of controlling Railways.

·         15.09.1990 - Foundation stone laid at Roha.

 

Sreedharan style of Construction:

 

·         Entire 760 KM project divided into 7 segments.

·         Each segment headed by Chief Engineer, who was delegated with full powers.

·         The field level - with newly recruited 400 young engineers from fresh graduates.

·         At the peak of construction, not more than 2400 personnel from MD to lower level.

·         WANs/LANs for instant communication

·         Survey - First time in Indian Railways history - Sent out of  teams of boys having diploma in Engineering  with Kawasaki Bikes with petrol and Rs. 100/- Per day . Normally Jeeps and lot of people running around.  

·         30 teams in Goa worked on 16 different alignments and the data was analysed by Shri Rajaram, the Chief Engineer ( later MD of KRCL too) analysed the entire data on an assembled computer, which was bought cheap in Bangalore.  He himself designed the software for this analysis.  This approach saves 90 % of the normal cost.

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RO-RO Car Transportation

• Konkan Railway Corporation Limited (KRCL) is launching Ro-Ro (Roll-on Roll-off) car transportation service between Kolad (Maharashtra) and Verna (Goa).

• Service launch dates:

• 23rd August 2025 from Kolad.

• 24th August 2025 from Verna.

• The service will operate on alternate days in each direction till 11th September 2025.

• Departure: 5:00 PM, Arrival: 5:00 AM next day.

• Reporting time: 2:00 PM (3 hours before departure).

• Each specially designed rake carries 40 cars (2 cars per wagon × 20 wagons).

• Freight charge per car: ₹7,875 (inclusive of GST).

• Initial registration fee: ₹4,000 (to be paid at booking).

• Max 3 persons per car can travel in:

• 3AC Coach: ₹935 per person

• Second Seating: ₹190 per person

• Minimum 16 car bookings required per trip. Otherwise, trip will be cancelled and refund issued.

• 🚆 Railway Distance (Kolad → Verna)

• Konkan Railway’s official figures list the Ro‑Ro route between Kolad (Maharashtra) and Verna (Goa) as approximately 417 km by rail  .

• 🛣 Road Distance (Kolad → Verna)

• News reports state the road journey typically takes 20–22 hours, while the train delivers the same in ≈12 hours, implying road travel is both slower and more winding  .

Notes:

• Konkan Railway began its original Ro‑Ro service for trucks between Kolad and Verna back in 1999, expanding later to Surathkal in 2004, marking India’s first Ro‑Ro offering for freight transport  .