Indian Railways Plans Rs 16.7 Lakh Crore Investment by 2031

28 Mar 2025 CW Team

Key Investment Areas The extensive plan includes:

Redevelopment of 1,309 railway stations

Expansion of dedicated freight corridors (DFCs)

Development of high-speed rail corridors

Increased private sector participation in infrastructure projects

The government has adopted an engineering, procurement, and construction (EPC) model for station upgrades. As of February 2024, redevelopment work had commenced on 508 stations, while 553 others had their foundations laid, marking a ?190 billion business opportunity. However, the report notes that major station redevelopment contracts were awarded in the past 2-3 years, potentially leading to fewer large-scale projects in the immediate future.

Boosting Freight and High-Speed Rail To enhance logistics efficiency, Indian Railways is expanding dedicated freight corridors. The Eastern and Western DFCs are already operational, while three more corridors are under development to improve cost-effective goods transportation.

In the high-speed rail segment, the Mumbai-Ahmedabad bullet train project is progressing, and plans for seven additional HSR corridors are in place. However, implementation is expected to take time, limiting immediate business opportunities in this sector.

Budget Growth and Financial Strategy Indian Railways' budget allocation has consistently grown from ?1.55 trillion in FY21 to an estimated ?2.65 trillion in FY25, reflecting a 14% compound annual growth rate (CAGR). A significant portion of this increase is directed toward station redevelopment and rail infrastructure projects.

The government’s continued focus on modernizing railways, improving efficiency, and increasing private participation signals strong growth potential for the sector. While station redevelopment and freight corridor projects are advancing rapidly, high-speed rail expansion is expected to unfold gradually over the coming years.

Indian Railways has unveiled an ambitious ?16.7 lakh crore investment plan set to be executed by 2031, focusing on key infrastructure projects, including station modernization, freight corridor expansion, high-speed rail (HSR) development, and full-scale electrification of railway tracks, according to a report by ICICI Securities. Key Investment Areas The extensive plan includes: Redevelopment of 1,309 railway stations Expansion of dedicated freight corridors (DFCs) Development of high-speed rail corridors Increased private sector participation in infrastructure projects The government has adopted an engineering, procurement, and construction (EPC) model for station upgrades. As of February 2024, redevelopment work had commenced on 508 stations, while 553 others had their foundations laid, marking a ?190 billion business opportunity. However, the report notes that major station redevelopment contracts were awarded in the past 2-3 years, potentially leading to fewer large-scale projects in the immediate future. Boosting Freight and High-Speed Rail To enhance logistics efficiency, Indian Railways is expanding dedicated freight corridors. The Eastern and Western DFCs are already operational, while three more corridors are under development to improve cost-effective goods transportation. In the high-speed rail segment, the Mumbai-Ahmedabad bullet train project is progressing, and plans for seven additional HSR corridors are in place. However, implementation is expected to take time, limiting immediate business opportunities in this sector. Budget Growth and Financial Strategy Indian Railways' budget allocation has consistently grown from ?1.55 trillion in FY21 to an estimated ?2.65 trillion in FY25, reflecting a 14% compound annual growth rate (CAGR). A significant portion of this increase is directed toward station redevelopment and rail infrastructure projects. The government’s continued focus on modernizing railways, improving efficiency, and increasing private participation signals strong growth potential for the sector. While station redevelopment and freight corridor projects are advancing rapidly, high-speed rail expansion is expected to unfold gradually over the coming years.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..