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.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..