Railway station redevelopment picks up speed: ICRA

01 Jun 2019 CW Team

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.

Technology

29 Jul 2026

AI-Enabled Workflows Lift Profitability and Productivity

Organisations modernising frontline workflows with artificial intelligence, automation and real-time data are reporting stronger financial performance, higher productivity and improved employee engagement, according to a global study by Zebra Technologies and Oxford Economics.The research covered 1,000 senior leaders across retail, manufacturing, transportation and logistics in the US, Mexico, the UK, Germany, India, Japan, Australia and New Zealand.In transportation and logistics, 54 per cent of companies that improved picking and packing operations reported faster operational performance, wh..

Real Estate

29 Jul 2026

India Leads Global AI Readiness but Implementation Lags

Indian companies lead global averages across all eight artificial intelligence readiness indicators tracked by JLL, but only 19 per cent have started making changes to their workplaces, according to the JLL 2026 Future of Work Survey.The study found that 77 per cent of Indian business leaders expect AI to change their office requirements, creating a 58-percentage-point gap between awareness and implementation. The survey covered more than 2,200 CEOs, CFOs and real estate leaders across 21 countries during the first quarter of 2026.Despite concerns over automation, 58 per cent of Indian leaders..

Equipment

29 Jul 2026

Three WOLFF Cranes Build Riyadh Cable-Stayed Bridges

Three WOLFF 180 B luffing jib cranes are supporting the construction of two cable-stayed bridges alongside the existing Wadi Laban Bridge in Riyadh, Saudi Arabia. The project is being developed for the Royal Commission for Riyadh City and executed by the ICRC joint venture comprising IC Ictas and Al Rashid Trading & Contracting Company.The cranes are handling lifting operations including formwork, reinforcement, concrete placement, work platforms, surveying equipment and other construction materials. Each crane is fitted with a 40 m jib, reaches a hook height of 157 m and offers a maximum ..