Metro projects to produce Rs 800 bn opportunities over next 5 years

23 Jun 2022 CW Team

Metro rail projects will produce Rs 800 billion of opportunities for construction firms over the next five years, according to the Icra research report.

In India, 15 cities have functional metro networks of approximately 746 km, while another seven cities of about 640 km have under-implementation metro rail projects. This apart, 1,400 km of metro projects worth Rs 2 trillion are in the clearance and proposal stage. Of these, 352 km of the new metro rail network have been approved, with the remaining being in the proposal stage.

Given the government’s thrust for infrastructure development, the metro network is expected to see 2.7 times expansion in the next five years. Typically, the metro rail development cost varies between Rs 280 and Rs 320 crore per km for elevated metro, and the price could be much higher in the case of an underground metro rail network. Civil construction forms 35%-45% of the overall expense.

ICRA, corporate ratings, sector head & assistant vice president Abhishek Gupta said given the large size of the metro rail projects, this is likely to present sizable opportunities for construction firms over the next five years.

Due to the existence of a limited number of players in the industry, the competitive intensity has so far remained mild with no signs of aggressive bidding as seen in other infrastructure segments like railways, roads, etc.

As per Icra’s research, nearly 58% of the projects were awarded at a premium over the base price, with 14% of the projects granted at over 20% premium. While 42% of the bids were granted at a discount; the majority of these were at a nominal discount, and only 7% of succeeding bids were at over 25% discount.

Image Source

Also read: NMRC likely to issue tender for proposed multi-modal transport soon

Infrastructure Urban

09 Jan 2026

Mount Expands Tumkur Facility with New Automated Panel, PEB Lines

Mount Roofing & Structures Private Limited, one of India's fastest-growing manufacturers in PUF and a leading solutions provider across pre-engineered building (PEB) and polycarbonate sheets, simultaneously inaugurated its second fully automated continuous sandwich panel manufacturing line and a new PEB manufacturing plant at its integrated campus in Tumkur.The milestone expansion, part of a total investment of Rs 250 crore, marks a significant advancement in the company's commitment to engineered performance, manufacturing scale, and industrial growth. The integrated facility spans approx..

India Becomes First to Produce Bio-Bitumen for Roads

India has become the first country in the world to commercially produce bio-bitumen for use in road construction, according to Road, Transport and Highways Minister Nitin Gadkari. Bitumen, a black and viscous hydrocarbon derived from crude oil, is a key binding material in road building, and the bio-based alternative is expected to significantly improve the sector’s environmental footprint.Addressing the CSIR Technology Transfer Ceremony in New Delhi, Mr Gadkari congratulated Council of Scientific and Industrial Research on achieving the milestone, noting that the initiative would help curb ..

HILT Policy Seen Boosting Telangana Revenue Sharply

The Hyderabad Industrial Land Transformation (HILT) Policy is expected to generate around Rs 1.08 billion in revenue for the Telangana state exchequer, according to Deputy Chief Minister Bhatti Vikramarka Mallu. Speaking in the Telangana Legislative Assembly, he said the policy would be implemented within a six-month timeframe in a transparent manner, with uniform rules applicable to all stakeholders. Mr Vikramarka noted that without the HILT Policy, the state would have earned only about Rs 1.2 million per acre. Under the new framework, however, revenue is projected to rise sharply to Rs 70 ..