Railways to offer opportunities worth Rs 280 bn a year
RAILWAYS & METRO RAIL

Railways to offer opportunities worth Rs 280 bn a year

Highlighting opportunities for the capital goods industry under ambitious construction projects such as high-speed rail and dedicated freight corridors, FICCI’s Capital Goods Committee has prepared a report on ‘Opportunities for Capital Goods Industry with Indian Railways and Metros’, with multiple suggestions that provide new business opportunities for the Indian industry. The report identifies specific opportunities across various areas such as rolling-stock manufacturing, sub-assembly or component manufacturing, machinery and tool manufacturing, and project execution.

The report was recently released by Arun Goel, Secretary, Department of Heavy Industry, and Shailendra Roy, Chair, FICCI Capital Goods Committee and Member of the Board, Larsen & Toubro (L&T).

"Indian Railways is the lifeline of India's social and economic structure,” said Roy.“Industry participation is a must for the next generation of upgrades and expansion in railways infrastructure and network. Policymakers should promote this through both strategic initiatives such as phased manufacturing programmes and policy and process reforms such as making procurement contracts compatible with global standards."

The FICCI report highlights that Indian Railways has substantially stepped up capital expenditure from historical levels of Rs 400-500 billion per annum. The capital expenditure for 2019-20 was Rs 1.3 trillion, while the budget for 2019-20 stands at Rs 1.59 trillion, as it undertakes high-priority initiatives such as electrification, rolling-stock upgrade and track expansion. Also, metro projects in multiple cities are in various stages of execution.

Here are some highlights from the report for policymakers to further facilitate industry participation in these opportunities:

  • The recommendations include formulation of a national railway plan, reforms in procurement policy and processes, strategic initiatives such as a phased manufacturing programme, expansion of the PPP model to newer areas, and closer collaboration with industry for absorption of technology.
  • The report identifies imperatives for industry that include de-risking business from overreliance on Railways orders, forging partnerships with global technology players, promoting self-certification and ramping up manufacturing and project execution capabilities.
  • Business opportunities identified in the report can also play a critical role in Make in India and job creation.
  • The report estimates an incremental manufacturing opportunity of Rs 280 billion per annum for the Indian capital goods industry.
  • Fully capturing these opportunities will generate around 70,000 direct manufacturing jobs and a total of around 7 lakh indirect and induced jobs.
  • On the project execution side, the report says that successfully achieving targets on track construction, electrification, high-speed rail and dedicated freight corridors will generate a total project execution opportunity of about Rs 5 trillion for the industry over the next five to seven years.
  • This will generate 60-70 lakh man years of employment during the construction phase of these projects, notes the report.

Highlighting opportunities for the capital goods industry under ambitious construction projects such as high-speed rail and dedicated freight corridors, FICCI’s Capital Goods Committee has prepared a report on ‘Opportunities for Capital Goods Industry with Indian Railways and Metros’, with multiple suggestions that provide new business opportunities for the Indian industry. The report identifies specific opportunities across various areas such as rolling-stock manufacturing, sub-assembly or component manufacturing, machinery and tool manufacturing, and project execution. The report was recently released by Arun Goel, Secretary, Department of Heavy Industry, and Shailendra Roy, Chair, FICCI Capital Goods Committee and Member of the Board, Larsen & Toubro (L&T). Indian Railways is the lifeline of India's social and economic structure,” said Roy.“Industry participation is a must for the next generation of upgrades and expansion in railways infrastructure and network. Policymakers should promote this through both strategic initiatives such as phased manufacturing programmes and policy and process reforms such as making procurement contracts compatible with global standards. The FICCI report highlights that Indian Railways has substantially stepped up capital expenditure from historical levels of Rs 400-500 billion per annum. The capital expenditure for 2019-20 was Rs 1.3 trillion, while the budget for 2019-20 stands at Rs 1.59 trillion, as it undertakes high-priority initiatives such as electrification, rolling-stock upgrade and track expansion. Also, metro projects in multiple cities are in various stages of execution. Here are some highlights from the report for policymakers to further facilitate industry participation in these opportunities: The recommendations include formulation of a national railway plan, reforms in procurement policy and processes, strategic initiatives such as a phased manufacturing programme, expansion of the PPP model to newer areas, and closer collaboration with industry for absorption of technology.The report identifies imperatives for industry that include de-risking business from overreliance on Railways orders, forging partnerships with global technology players, promoting self-certification and ramping up manufacturing and project execution capabilities.Business opportunities identified in the report can also play a critical role in Make in India and job creation. The report estimates an incremental manufacturing opportunity of Rs 280 billion per annum for the Indian capital goods industry. Fully capturing these opportunities will generate around 70,000 direct manufacturing jobs and a total of around 7 lakh indirect and induced jobs. On the project execution side, the report says that successfully achieving targets on track construction, electrification, high-speed rail and dedicated freight corridors will generate a total project execution opportunity of about Rs 5 trillion for the industry over the next five to seven years. This will generate 60-70 lakh man years of employment during the construction phase of these projects, notes the report.

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?