News Brief
Indian Railways To Invest Rs 16.7 Lakh Crore By 2031 In Massive Modernisation Push: Report
Indian Railways (PTI) (Representative Image)
Indian Railways (IR) has laid out an ambitious investment plan of Rs 16.7 lakh crore by 2031, concentrating on station redevelopment, freight corridors, and high-speed rail (HSR) projects, as per a report from ICICI Securities, ANI reported.
The report states, "IR plans to invest approx. INR 16.7 trillion by 2031 in freight corridors, HSR, and station upgrades. Key projects include redeveloping 1,309 stations and expanding DFCs."
The investment will increase railway efficiency, increase logistics, and enhance passenger experience.
The ministry of railways is giving high priority to redevelopment of 1,309 stations and doubling up Dedicated Freight Corridors (DFCs) to increase freight movement.
Two DFCs—Eastern and Western are completed, while three others are under construction with the aim to lower transportation costs and increase cargo efficiency.
The Mumbai-Ahmedabad bullet train project is already in progress, and the government has announced seven more HSR corridors, but their implementation timelines are unclear.
The government's budgetary provision for Indian Railways has jumped from Rs 1.55 trillion in FY21 to Rs 2.65 trillion in FY25, which is a 14 per cent CAGR growth over the five-year period.
A major portion of this goes into redevelopment of stations, with 508 stations under way and construction started on another 553 stations in February 2024, aggregating to a Rs 190 billion business opportunity.
The majority of these projects are being implemented under the engineering, procurement, and construction (EPC) mode, with large contracts going to companies such as Larsen & Toubro (L&T).
However, the report also notes, "Given the fact that the big stations (in terms of size) for redevelopment have been awarded in the past two to three years, we expect limited opportunity ahead."
