The decision-making process and awarding of railway contracts need to be faster
RAILWAYS & METRO RAIL

The decision-making process and awarding of railway contracts need to be faster

At present, Tata Projects is executing works on important stretches of the Eastern and Western Dedicated Freight Corridors. Rahul Shah, COO-Urban Infrastructure, Tata Projects,elaborates on the factors bringing optimism to the railway sector in coming yearswith SHRIYAL SETHUMADHAVAN. 

How do you view the current growth and construction opportunity in the sector? 
Indian Railways has achieved the highest ever capital expenditure of about Rs 1.32 trillion in 2018-19. This is a jump of Rs 300 billion from the Rs 1.02 trillion achieved a year ago. In addition, the Government has proposed a conversion of all viable rail tracks to broad gauge, electrification of all railway tracks, and completion of the two dedicated freight corridor projects by 2022. Hence, there is huge potential for capacity augmentation and modernisation across the sector.

How do you view the availability of funds for project execution?
Indian Railways is one of the largest carriers of both passengers and freight across the nation. Projects in this segment are economically viable and, therefore, will not face funding constraints. Also, many domestic and international financial institutions are keen to fund railway projects.

How do you view the construction opportunities in the sector for the next five years?
We look forward to garnering significant orders whenever the Government awards projects in this sector, thereby contributing to the company’s overall growth. Also, Indian Railways is an important factor in the nation’s development if one considers it in terms of length of lines covered (67,000 km of track), freight volume handled (1.1 billion tonne) and passenger numbers (8 billion). In addition, it is also among the nation’s largest employers with about 1.3 million employees. However, there still exists immense scope for further capacity expansion and modernisation. In the next five years, we foresee huge capital expenditure in the expansion of rail lines and modernisation of allied amenities such as signalling, electrification and railway station upgradation. 

Any recommendations to give a further fillip to the sector?
The current Government intends to continue initiatives to expand and modernise the railways, which is encouraging. However, we feel the decision-making process and awarding of contracts need to be faster. The issue of securing local-level permissions needs to be simplified and quicker. Right of way is an issue that needs to be addressed so that timely project completion is achieved. Disbursals of financing to contractors need to be done in a timely manner. This will not only support the Government’s developmental agenda but spur the domestic industry.

Considering the railways as well as other construction segments, which sectors will the company’s business focus on? 
In its manifesto, the Government had proposed $1.44 trillion to build roads, railways and other infrastructure, a boost to manufacturing and a doubling in exports. Hence, we are expecting major capital expenditure from governmental and private sources into all major infrastructure sectors. We will continue to leverage our expertise in executing large and complex urban and industrial infrastructure projects, thereby ensuring higher growth in the years ahead.

At present, Tata Projects is executing works on important stretches of the Eastern and Western Dedicated Freight Corridors. Rahul Shah, COO-Urban Infrastructure, Tata Projects,elaborates on the factors bringing optimism to the railway sector in coming yearswith SHRIYAL SETHUMADHAVAN. How do you view the current growth and construction opportunity in the sector? Indian Railways has achieved the highest ever capital expenditure of about Rs 1.32 trillion in 2018-19. This is a jump of Rs 300 billion from the Rs 1.02 trillion achieved a year ago. In addition, the Government has proposed a conversion of all viable rail tracks to broad gauge, electrification of all railway tracks, and completion of the two dedicated freight corridor projects by 2022. Hence, there is huge potential for capacity augmentation and modernisation across the sector.How do you view the availability of funds for project execution?Indian Railways is one of the largest carriers of both passengers and freight across the nation. Projects in this segment are economically viable and, therefore, will not face funding constraints. Also, many domestic and international financial institutions are keen to fund railway projects.How do you view the construction opportunities in the sector for the next five years?We look forward to garnering significant orders whenever the Government awards projects in this sector, thereby contributing to the company’s overall growth. Also, Indian Railways is an important factor in the nation’s development if one considers it in terms of length of lines covered (67,000 km of track), freight volume handled (1.1 billion tonne) and passenger numbers (8 billion). In addition, it is also among the nation’s largest employers with about 1.3 million employees. However, there still exists immense scope for further capacity expansion and modernisation. In the next five years, we foresee huge capital expenditure in the expansion of rail lines and modernisation of allied amenities such as signalling, electrification and railway station upgradation. Any recommendations to give a further fillip to the sector?The current Government intends to continue initiatives to expand and modernise the railways, which is encouraging. However, we feel the decision-making process and awarding of contracts need to be faster. The issue of securing local-level permissions needs to be simplified and quicker. Right of way is an issue that needs to be addressed so that timely project completion is achieved. Disbursals of financing to contractors need to be done in a timely manner. This will not only support the Government’s developmental agenda but spur the domestic industry.Considering the railways as well as other construction segments, which sectors will the company’s business focus on? In its manifesto, the Government had proposed $1.44 trillion to build roads, railways and other infrastructure, a boost to manufacturing and a doubling in exports. Hence, we are expecting major capital expenditure from governmental and private sources into all major infrastructure sectors. We will continue to leverage our expertise in executing large and complex urban and industrial infrastructure projects, thereby ensuring higher growth in the years ahead.

Next Story
Resources

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Next Story
Real Estate

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Next Story
Real Estate

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement