Metro projects to produce Rs 800 bn opportunities over next 5 years
RAILWAYS & METRO RAIL

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

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

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

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code