The extra money has come from the cricket rights, which it lost to Sky last year, and will see the creation of a new Thursday 9pm drama slot due to debut next year.
Kevin Lygo, director of programmes, said: "This is the silver lining to our loss of cricket rights. It's freed up money to invest in ambitious and challenging dramas that tackle the big issues of our day."
Channel 4 has commissioned a Neil Biswas-penned drama based about the 2001 riots in Bradford.
The two dramas will be broadcast on Thursday as part of the new 9pm drama run, which Channel 4 has pencilled in as a regular feature for 2006.
One-off dramas to air this year include a dramatisation of the death of MoD scientist David Kelly, which led to the Hutton Report, in 'The Government Inspector' and provocative IVF drama 'Born with Two Mothers' starring Sophie Okonedo, who was nominated for an Oscar for her role in 'Hotel Rwanda'.
Continuing on from last year's controversial documentaries such as 'The Boy Whose Skin Fell Off', Channel 4 is showing the journey of a baby from a single cell to its birth using the latest "4D" scanning techniques in 'Life Before Birth' .
Filmed over several months at one of the UK's largest autism schools 'Make Me Normal' sheds light on the 500,000 people in the UK that grow up with the condition.
Friday nights get a shake-up with a Johnny Vegas-fronted comedy show 'Johnny Vegas: 18 Stone of Idiot', which will see the comedian interview celebrities including Rhys Ifans and Ray Winstone in front of a live studio audience.
'Distraction' presenter Jimmy Carr will host '8 Out of 10 Cats', a topical panel show with team captains Sean Lock and 'Phoenix Nights'' Dave Sparky.
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