+
Railway station redevelopment picks up speed: ICRA
RAILWAYS & METRO RAIL

Railway station redevelopment picks up speed: ICRA

The overall size of the railway station redevelopment programme is quite large, involving over 500 stations with an estimated cost of Rs 1.1 trillion; this is likely to be spread over a longer-time horizon (more than five years), according to ICRA. Over the medium term (one to three years), about 50 stations are likely to be taken up for redevelopment, with the estimated cost from Rs 100-200 billion, depending on the extent of commercial development around these stations.

According to Shubham Jain, Vice-President and Group Head, Corporate Ratings, ICRA, “So far, contracts for five station redevelopment projects have been awarded by the Indian Railway Stations Development Corporation (IRSDC) and NBCC India, namely Habibganj (Bhopal), Gandhinagar (Gujarat), Gomti Nagar (Lucknow), Charbagh (Lucknow) and Puducherry. While Habibganj has been awarded under the PPP mode, the other four stations have been awarded on EPC mode. The first two stations awarded—Habibganj and Gandhinagar—are in advanced stages of implementation, while the remaining three (two in Lucknow and one in Puducherry) have been awarded in FY2019. The awarded contract values have varied between Rs 1 billion and Rs 5.4 billion, and have been taken up by construction players focused on the building segment. The total value of the four contracts (excluding the PPP project) is Rs 11.49 billion. However, the competitive intensity in bidding for these projects has been low, with average awards at 5 per cent premium to the base cost.”

Besides, ICRA notes that IRSDC has recently allocated planning and feasibility work for 39 stations to five CPSEs (NPCC, engineering projects, MECON, RITES, bridges and roof companies). This is likely to pave the way for fast-tracking development. This apart, NBCC was earlier entrusted with 10 railway stations, of which it has already awarded EPC work for three and is likely to take up the remaining stations depending on their financial viability.

Indeed, after a slow start, the station development programme has gained traction in the past year and is expected to gather momentum with multiple station redevelopment projects in the pipeline. Nevertheless, challenges still remain that can affect the programme.

The overall size of the railway station redevelopment programme is quite large, involving over 500 stations with an estimated cost of Rs 1.1 trillion; this is likely to be spread over a longer-time horizon (more than five years), according to ICRA. Over the medium term (one to three years), about 50 stations are likely to be taken up for redevelopment, with the estimated cost from Rs 100-200 billion, depending on the extent of commercial development around these stations. According to Shubham Jain, Vice-President and Group Head, Corporate Ratings, ICRA, “So far, contracts for five station redevelopment projects have been awarded by the Indian Railway Stations Development Corporation (IRSDC) and NBCC India, namely Habibganj (Bhopal), Gandhinagar (Gujarat), Gomti Nagar (Lucknow), Charbagh (Lucknow) and Puducherry. While Habibganj has been awarded under the PPP mode, the other four stations have been awarded on EPC mode. The first two stations awarded—Habibganj and Gandhinagar—are in advanced stages of implementation, while the remaining three (two in Lucknow and one in Puducherry) have been awarded in FY2019. The awarded contract values have varied between Rs 1 billion and Rs 5.4 billion, and have been taken up by construction players focused on the building segment. The total value of the four contracts (excluding the PPP project) is Rs 11.49 billion. However, the competitive intensity in bidding for these projects has been low, with average awards at 5 per cent premium to the base cost.” Besides, ICRA notes that IRSDC has recently allocated planning and feasibility work for 39 stations to five CPSEs (NPCC, engineering projects, MECON, RITES, bridges and roof companies). This is likely to pave the way for fast-tracking development. This apart, NBCC was earlier entrusted with 10 railway stations, of which it has already awarded EPC work for three and is likely to take up the remaining stations depending on their financial viability. Indeed, after a slow start, the station development programme has gained traction in the past year and is expected to gather momentum with multiple station redevelopment projects in the pipeline. Nevertheless, challenges still remain that can affect the programme.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code