With Multifold Increase, EPC Companies Eye Rs 30,000-Crore Worth Redevelopment Opportunities, Most Railway Stations In Uttar Pradesh

Engineering, Procurement, and Construction (EPC) companies are set to benefit from Rs 30,000 crore worth of contracts for the redevelopment and revamp of railway stations over the next two years.

The Indian Railways has approved the redevelopment of 1,318 stations, creating significant opportunities for EPC players, according to an ICRA Ratings report.

Previously, the government planned to execute station redevelopment projects under the public-private partnership (PPP) model, targeting 12 per cent of the national asset monetisation pipeline.

However, challenges such as pricing restrictions, real estate market risks, and limited PPP track record in the railway sector led to a shift in strategy.

In December 2022, the government reallocated these projects to the EPC mode and increased budgetary allocation from Rs 2,159 crore in FY23 to Rs 15,511 crore in FY25.

"Due to high competition in traditional segments like roads and buildings, railway station redevelopment provides business opportunities worth Rs 30,000 crore for EPC companies," said Vinay Kumar G of ICRA.

To date, foundation stones have been laid for 553 stations, with over Rs 20,000 crore worth of projects already awarded. Key stations like Chhatrapati Shivaji Maharaj Terminal (Mumbai), Ahmedabad, Surat, Prayagraj, Bangalore Cantt, Chennai Egmore, and Secunderabad are among those awarded under the EPC mode.

Uttar Pradesh leads with 149 stations slated for redevelopment, followed by Maharashtra (126), West Bengal (94), Gujarat (87), Bihar (86), Rajasthan (82), and Madhya Pradesh (80).

However, awards for 765 stations, including prominent ones like New Delhi, Pune, Borivali, Mumbai Central, Thane, and Amritsar, are still pending.

Competition for these projects has been moderate, with discounts ranging from 4 per cent to 18 per cent, similar to other railway EPC projects. This shift to EPC mode is expected to accelerate project execution and create substantial business opportunities for infrastructure companies.