Railway station redevelopment picks up speed: ICRA
RAILWAYS & METRO RAIL

Railway station redevelopment picks up speed: ICRA

The overall size of the railway station redevelopment programme is quite large, involving over 500 stations with an estimated cost of Rs 1.1 trillion; this is likely to be spread over a longer-time horizon (more than five years), according to ICRA. Over the medium term (one to three years), about 50 stations are likely to be taken up for redevelopment, with the estimated cost from Rs 100-200 billion, depending on the extent of commercial development around these stations.

According to Shubham Jain, Vice-President and Group Head, Corporate Ratings, ICRA, “So far, contracts for five station redevelopment projects have been awarded by the Indian Railway Stations Development Corporation (IRSDC) and NBCC India, namely Habibganj (Bhopal), Gandhinagar (Gujarat), Gomti Nagar (Lucknow), Charbagh (Lucknow) and Puducherry. While Habibganj has been awarded under the PPP mode, the other four stations have been awarded on EPC mode. The first two stations awarded—Habibganj and Gandhinagar—are in advanced stages of implementation, while the remaining three (two in Lucknow and one in Puducherry) have been awarded in FY2019. The awarded contract values have varied between Rs 1 billion and Rs 5.4 billion, and have been taken up by construction players focused on the building segment. The total value of the four contracts (excluding the PPP project) is Rs 11.49 billion. However, the competitive intensity in bidding for these projects has been low, with average awards at 5 per cent premium to the base cost.”

Besides, ICRA notes that IRSDC has recently allocated planning and feasibility work for 39 stations to five CPSEs (NPCC, engineering projects, MECON, RITES, bridges and roof companies). This is likely to pave the way for fast-tracking development. This apart, NBCC was earlier entrusted with 10 railway stations, of which it has already awarded EPC work for three and is likely to take up the remaining stations depending on their financial viability.

Indeed, after a slow start, the station development programme has gained traction in the past year and is expected to gather momentum with multiple station redevelopment projects in the pipeline. Nevertheless, challenges still remain that can affect the programme.

The overall size of the railway station redevelopment programme is quite large, involving over 500 stations with an estimated cost of Rs 1.1 trillion; this is likely to be spread over a longer-time horizon (more than five years), according to ICRA. Over the medium term (one to three years), about 50 stations are likely to be taken up for redevelopment, with the estimated cost from Rs 100-200 billion, depending on the extent of commercial development around these stations. According to Shubham Jain, Vice-President and Group Head, Corporate Ratings, ICRA, “So far, contracts for five station redevelopment projects have been awarded by the Indian Railway Stations Development Corporation (IRSDC) and NBCC India, namely Habibganj (Bhopal), Gandhinagar (Gujarat), Gomti Nagar (Lucknow), Charbagh (Lucknow) and Puducherry. While Habibganj has been awarded under the PPP mode, the other four stations have been awarded on EPC mode. The first two stations awarded—Habibganj and Gandhinagar—are in advanced stages of implementation, while the remaining three (two in Lucknow and one in Puducherry) have been awarded in FY2019. The awarded contract values have varied between Rs 1 billion and Rs 5.4 billion, and have been taken up by construction players focused on the building segment. The total value of the four contracts (excluding the PPP project) is Rs 11.49 billion. However, the competitive intensity in bidding for these projects has been low, with average awards at 5 per cent premium to the base cost.” Besides, ICRA notes that IRSDC has recently allocated planning and feasibility work for 39 stations to five CPSEs (NPCC, engineering projects, MECON, RITES, bridges and roof companies). This is likely to pave the way for fast-tracking development. This apart, NBCC was earlier entrusted with 10 railway stations, of which it has already awarded EPC work for three and is likely to take up the remaining stations depending on their financial viability. Indeed, after a slow start, the station development programme has gained traction in the past year and is expected to gather momentum with multiple station redevelopment projects in the pipeline. Nevertheless, challenges still remain that can affect the programme.

Next Story
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?