The award, announced by transport Minister Rosie Winterton yesterday, will plough the £34M into transport improvements for the regeneration of the Camborne-Pool-Redruth area.
Cornwall County Council can now move forward with detailed planning for a £44.5M package to build a new road between Redruth and Camborne, a new dual carriageway linking the A30 to new housing and employment areas and the conversion of the A3074 into a bus priority corridor.
The package will also include improvements to walking and cycling routes in the area. The funding will help secure the necessary road and public transport capacity to support the developments by improving access and reducing congestion.
The scheme, including necessary statutory planning procedures, should begin work in 2010.
Winterton said: "This investment of £34M underlines the Government's support for new employment and housing in the region.
"The scheme will deliver quicker car journeys and more reliable public transport, will reduce congestion and pollution, and create a much safer environment for residents, with more walking and cycling facilities offering a real alternative to the car," she said.