- 29 Sep 2022
- ICICIdirect Research
CABINET APPROVES REDEVELOPMENT OF DELHI, MUMBAI, AHMEDABAD RAILWAY STATIONS
News:
The Cabinet has approved the Rs 10,000-crore redevelopment projects of Delhi, Mumbai, Ahmedabad railway stations. The three stations developed completely through budgetary means. The projects will be tendered out through engineering, procurement and construction (EPC) mode. The Cabinet also mentioned that 199 stations are currently being redeveloped across the country. Out of these, tenders have been issued for 47 stations. The total cost of the redevelopment of 199 stations including these three major stations is Rs 60,000 crore. All redevelopment of stations will be done on the EPC model.
View:
In April-July 2022, capital spending on railways, roads, and highways jumped 102.7% and 66.8%, respectively. Both these sectors accounted for more than 60% of the total capital spending by the central government. This is a huge ordering opportunity for EPC companies like L&T and KEC.
Impact:
Positive.