Indian Railways: Railways to spend Rs 16.7 lakh crore by 2031 on infrastructure projects
New Delhi| Railways plans to invest Rs 16.7 lakh crore by 2031 on infrastructure projects. ICICI Securities has made this claim in one of its reports. According to the report, this money will be spent on upgrading stations, building Fred corridors, high speed rail projects and electrification of tracks. These projects will help Railways to increase its operations.
“Indian Railways plans to invest around Rs 16.7 lakh crore in freight corridors, HSRs and station upgrades by 2031″, the report said. Major projects include the redevelopment of 1,309 stations and the expansion of the DFC”.
According to the report, the Railways is giving priority to redevelopment of 1,309 railway stations and expansion of Dedicated Freight Corridors (DFCs). Private sector participation is also increasing. Major companies like Larsen & Toubro (L&T) are securing important contracts for these projects.
One of the major objectives of this investment is to improve the speed and efficiency of the railways. The government is focusing on the development of new HSR corridors and additional DFCs to increase logistics and reduce transportation costs.
According to the report, the budget allocation for Indian Railways is continuously increasing. The outlay has increased from Rs 1.55 lakh crore in FY21 to an estimated Rs 2.65 lakh crore in FY25. A compound annual growth rate of 14 per cent was recorded over the period. Redevelopment of railway stations is a major part of this plan.
According to the report, the government has chosen the route of engineering, procurement and construction (EPC) for station upgradation. As of February 2024, work has started on 508 stations, while the construction phase of the remaining stations is yet to start. In the same month, the government also laid the foundation for the redevelopment of 553 railway stations, which created a business opportunity worth Rs 190 billion. The report said the huge investment plan could lead to significant modernization of Indian Railways in the coming years. It is also expected to improve passenger experience and freight transport efficiency.
