The gauge conversion will result in faster connectivity between Delhi and Ahmedabad, Prabhu said after laying the foundation through video-conferencing from Rail Bhawan here.
The function was also attended by BJP veteran L K Advani who made his maiden visit to Rail Bhawan.
An allotment of Rs 100 crore has been made for gauge conversion on the 70-km Ahmedabad-Mehsana line, he said.
"Gujarat plays an important role in terms of railway traffic due to strategic location of ports like Kandla," Prabhu said, adding railways has given an increased outlay for Gujarat in the last two years.
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He said the public transporter plans to raise more money from other sources as well as there is still a gap between the demand and services being offered.
"Keeping in mind the future requirement and the need for improvement in the current infrastructure, we are trying to get money through other sources as well," he said.
Prabhu said the demand for railway services is going to increase with more and more people choosing this medium for travelling as well as due to higher cargo demand on account of economic growth.
"I thank Prabhu for inviting me... I have never been to Railway Ministry before this," he said.