Indian Railways Revamps Station Redevelopment Unlocking Rs 300 Bn

26 Dec 2024 CW Team

According to ICRA, EPC companies now stand to gain business opportunities worth Rs 300 billion over the next two years related to railway station redevelopment. Vinay Kumar G, Sector Head for Corporate Ratings at ICRA, noted that while competition remains intense in traditional sectors like roads and buildings, the redevelopment of railway stations presents substantial growth opportunities for construction companies, estimated at Rs 300 billion. He emphasised that this sector provides a chance for companies to expand and mitigate risks by diversifying.

Over the past two years, tenders for station redevelopment projects have faced moderate competition, with discounts of up to 18 per cent, and the median discount standing at about 4 per cent. This trend mirrors other railway EPC projects, where the median discount is around 5 per cent. Given that Indian Railways is considered a reliable counterparty, the receivable cycle is expected to be short, similar to that of the National Highways Authority of India (NHAI).

Key railway stations awarded redevelopment under the EPC model include Mumbai’s Chhatrapati Shivaji Maharaj Terminal (CSMT), Ahmedabad, Surat, Prayagraj, Bangalore Cantt, Chennai Egmore, and Secunderabad, among others. Additionally, tenders for 765 more stations are still pending, with notable stations such as New Delhi, Pune, Borivali, Mumbai Central, Thane, and Amritsar yet to be awarded.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

Indian Railways is considering redeveloping a total of 1,318 railway stations under the Amrit Bharat Station Scheme. Initially, the government had planned to carry out most of these station redevelopment projects through the Public-Private Partnership (PPP) model, which was expected to contribute approximately 12 per cent to the National Monetisation Pipeline (NMP) target. However, limited participation in PPP projects—due to factors like pricing restrictions, market risks related to real estate development, and a lack of a solid track record in railway PPPs—led the government to shift to the Engineering, Procurement, and Construction (EPC) model for station redevelopment in December 2022. To support this transition, the budget allocation increased significantly, from Rs 21.59 billion in FY2023 to Rs 155.11 billion in the FY2025 Budget Estimates (BE), with expectations for continued strong funding in the medium term. According to ICRA, EPC companies now stand to gain business opportunities worth Rs 300 billion over the next two years related to railway station redevelopment. Vinay Kumar G, Sector Head for Corporate Ratings at ICRA, noted that while competition remains intense in traditional sectors like roads and buildings, the redevelopment of railway stations presents substantial growth opportunities for construction companies, estimated at Rs 300 billion. He emphasised that this sector provides a chance for companies to expand and mitigate risks by diversifying. Over the past two years, tenders for station redevelopment projects have faced moderate competition, with discounts of up to 18 per cent, and the median discount standing at about 4 per cent. This trend mirrors other railway EPC projects, where the median discount is around 5 per cent. Given that Indian Railways is considered a reliable counterparty, the receivable cycle is expected to be short, similar to that of the National Highways Authority of India (NHAI). Key railway stations awarded redevelopment under the EPC model include Mumbai’s Chhatrapati Shivaji Maharaj Terminal (CSMT), Ahmedabad, Surat, Prayagraj, Bangalore Cantt, Chennai Egmore, and Secunderabad, among others. Additionally, tenders for 765 more stations are still pending, with notable stations such as New Delhi, Pune, Borivali, Mumbai Central, Thane, and Amritsar yet to be awarded.

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Infrastructure Transport

05 Sep 2025

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Infrastructure Transport

05 Sep 2025

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..