The approval is a key step to getting the Inland Rail project back on track following an independent review of the project, led by Dr Kerry Schott.

"I am pleased to learn that the Department of Climate Change, Energy, the Environment and Water has approved this project under the Environment Protection and Biodiversity Conservation Act 1999," Mr Coulton said.

"This is a great project, but there has been a lot of uncertainty and unnecessary delay [due to Labor review].

"While this approval for the N2N project is a positive step, I continue to question the Government's commitment and understanding of the Inland Rail project. The Schott report reinforced that there is a need for this project to be completed."

Mr Coulton said that the NSW Government had approved the works a year ago and there was no need for further delays.

He noted the jobs that had already been created along completed stages, which included the section of track between Narrabri and Moree.

He said it was critical to resume work in a timely fashion so that positive impacts for the area were not lost.

"I will always defend the work that has already been done on the Inland Rail project; all those involved should be proud of what they've achieved," Mr Coulton said.

"I again urge the Government to signal its commitment to this magnificent piece of infrastructure and provide certainty to residents in the Narromine to Narrabri section.

"It's time to get on with the job."

The N2N project will be Inland Rail's longest stretch of new rail and is a key link in the future Inland Rail supply chain. When constructed, N2N will link the completed Parkes to Narromine and Narrabri to North Star Phase 1 projects, providing new freight capacity and improved connectivity to ports on the east coast and westwards.