Indian government has approved investment by private persons or entities in modernizing some 400 railway stations across the country, said local media on Friday.

The government also cleared a plan to expand a highway in northern India from Haryana to Uttar Pradesh states outside Delhi which could ease air pollution in Delhi by enabling trucks and other vehicles passing through the region to bypass the capital.

The revamped railway stations will feature business centres, shopping outlets, restaurants and Wi-Fi-enabled waiting lounges, said local daily The Times of India.

Reburshed stations will also have luxury hotels, multilevel parking, separate entry and exit levels, it said.

Announcing the plan Thursday in Delhi, Indian Finance minister Arun Jaitley said the railway stations will be "redeveloped using the Swiss Challenge method," under which open bids are invited from interested parties allowing fair and transparent competition based on values of ideas in their proposals.