The decision-making process and awarding of railway contracts need to be faster
RAILWAYS & METRO RAIL

The decision-making process and awarding of railway contracts need to be faster

At present, Tata Projects is executing works on important stretches of the Eastern and Western Dedicated Freight Corridors. Rahul Shah, COO-Urban Infrastructure, Tata Projects,elaborates on the factors bringing optimism to the railway sector in coming yearswith SHRIYAL SETHUMADHAVAN. 

How do you view the current growth and construction opportunity in the sector? 
Indian Railways has achieved the highest ever capital expenditure of about Rs 1.32 trillion in 2018-19. This is a jump of Rs 300 billion from the Rs 1.02 trillion achieved a year ago. In addition, the Government has proposed a conversion of all viable rail tracks to broad gauge, electrification of all railway tracks, and completion of the two dedicated freight corridor projects by 2022. Hence, there is huge potential for capacity augmentation and modernisation across the sector.

How do you view the availability of funds for project execution?
Indian Railways is one of the largest carriers of both passengers and freight across the nation. Projects in this segment are economically viable and, therefore, will not face funding constraints. Also, many domestic and international financial institutions are keen to fund railway projects.

How do you view the construction opportunities in the sector for the next five years?
We look forward to garnering significant orders whenever the Government awards projects in this sector, thereby contributing to the company’s overall growth. Also, Indian Railways is an important factor in the nation’s development if one considers it in terms of length of lines covered (67,000 km of track), freight volume handled (1.1 billion tonne) and passenger numbers (8 billion). In addition, it is also among the nation’s largest employers with about 1.3 million employees. However, there still exists immense scope for further capacity expansion and modernisation. In the next five years, we foresee huge capital expenditure in the expansion of rail lines and modernisation of allied amenities such as signalling, electrification and railway station upgradation. 

Any recommendations to give a further fillip to the sector?
The current Government intends to continue initiatives to expand and modernise the railways, which is encouraging. However, we feel the decision-making process and awarding of contracts need to be faster. The issue of securing local-level permissions needs to be simplified and quicker. Right of way is an issue that needs to be addressed so that timely project completion is achieved. Disbursals of financing to contractors need to be done in a timely manner. This will not only support the Government’s developmental agenda but spur the domestic industry.

Considering the railways as well as other construction segments, which sectors will the company’s business focus on? 
In its manifesto, the Government had proposed $1.44 trillion to build roads, railways and other infrastructure, a boost to manufacturing and a doubling in exports. Hence, we are expecting major capital expenditure from governmental and private sources into all major infrastructure sectors. We will continue to leverage our expertise in executing large and complex urban and industrial infrastructure projects, thereby ensuring higher growth in the years ahead.

At present, Tata Projects is executing works on important stretches of the Eastern and Western Dedicated Freight Corridors. Rahul Shah, COO-Urban Infrastructure, Tata Projects,elaborates on the factors bringing optimism to the railway sector in coming yearswith SHRIYAL SETHUMADHAVAN. How do you view the current growth and construction opportunity in the sector? Indian Railways has achieved the highest ever capital expenditure of about Rs 1.32 trillion in 2018-19. This is a jump of Rs 300 billion from the Rs 1.02 trillion achieved a year ago. In addition, the Government has proposed a conversion of all viable rail tracks to broad gauge, electrification of all railway tracks, and completion of the two dedicated freight corridor projects by 2022. Hence, there is huge potential for capacity augmentation and modernisation across the sector.How do you view the availability of funds for project execution?Indian Railways is one of the largest carriers of both passengers and freight across the nation. Projects in this segment are economically viable and, therefore, will not face funding constraints. Also, many domestic and international financial institutions are keen to fund railway projects.How do you view the construction opportunities in the sector for the next five years?We look forward to garnering significant orders whenever the Government awards projects in this sector, thereby contributing to the company’s overall growth. Also, Indian Railways is an important factor in the nation’s development if one considers it in terms of length of lines covered (67,000 km of track), freight volume handled (1.1 billion tonne) and passenger numbers (8 billion). In addition, it is also among the nation’s largest employers with about 1.3 million employees. However, there still exists immense scope for further capacity expansion and modernisation. In the next five years, we foresee huge capital expenditure in the expansion of rail lines and modernisation of allied amenities such as signalling, electrification and railway station upgradation. Any recommendations to give a further fillip to the sector?The current Government intends to continue initiatives to expand and modernise the railways, which is encouraging. However, we feel the decision-making process and awarding of contracts need to be faster. The issue of securing local-level permissions needs to be simplified and quicker. Right of way is an issue that needs to be addressed so that timely project completion is achieved. Disbursals of financing to contractors need to be done in a timely manner. This will not only support the Government’s developmental agenda but spur the domestic industry.Considering the railways as well as other construction segments, which sectors will the company’s business focus on? In its manifesto, the Government had proposed $1.44 trillion to build roads, railways and other infrastructure, a boost to manufacturing and a doubling in exports. Hence, we are expecting major capital expenditure from governmental and private sources into all major infrastructure sectors. We will continue to leverage our expertise in executing large and complex urban and industrial infrastructure projects, thereby ensuring higher growth in the years ahead.

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?