The proposals revealed today include plans to transform Queen Street station into a "world-class integrated transport hub."
The Edinburgh-Glasgow Improvement Programme is the latest phase of plans to electrify the Scottish rail network, and promises to cut 10 minutes off the journey.
It will see longer electric trains introduced, improved reliability and increased capacity for passengers on the Queen Street to Edinburgh via Falkirk High line.
The project also promises wifi on all trains on the route by the end of next year.
Outlining the programme at Queen Street today Keith Brown, Scotland's Transport Minister, said: "This will take train journeys on Scotland's busiest commuter route into the next generation.
"These enhancements to the service will be a massive boost for both cities, and all the communities which surround them, as well as benefitting Scotland's economy as a whole through additional jobs and investment.
"And of course, passengers will enjoy quicker journeys, full wifi and better trains."
He said that the plans would mean a "revitalised Queen Street station and protect local commuter lines into the city".
He continued: "The scheme will not only save hundreds of millions for the public purse but will also play a part in guaranteeing we have a railway service for the future.
"The first stage will be delivered in time for the Commonwealth Games in 2014 with electrification of services to Cumbernauld.
"Working with Network Rail and ScotRail, we have a fantastic record of delivering projects - this will be no different.
"I look forward to seeing all the benefits, not just in transport but in improvements to our environment, the boost to our jobs market and economy and the health benefits from the reduction in carbon emissions."
Gordon Matheson, Glasgow City Council leader said: "Glas- gow is the driver of Scotland's economy and this is good news for the city.
"Initial plans suggested that train services in north Glasgow would have been dim- inished by this investment but the Transport Minister has given me a personal assurance that this will not be the case.
"It is vital we continue to invest in Glasgow's rail services and to improve our connectivity, not only within Scot- land, but with other cities."
The plans will see savings of over £300m after ministers updated an earlier project based on changes to the network and new opportunities to transform Queen Street.