- 17 Aug 2023
- ICICI Securities
PROJECTS WORTH RS 32500 CLEARED
IRCTC - 783 Change: 4.20 (0.54 %)News: Cabinet Committee on Economic Affairs has approved seven multi-tracking projects in Indian railways worth Rs 32,500 crore, with 100% funding from the central government. The projects covering 35 districts in nine states (Uttar Pradesh, Bihar, Telangana, Andhra Pradesh, Maharashtra, Gujarat, Odisha, Jharkhand and West Bengal) will increase the existing network of Indian Railways by 2,339 km. These are essential routes for transportation of varied basket of commodities. The capacity augmentation works will result in additional freight traffic of magnitude 200 million tonnes per annum.
Views: We believe that Engineering Procurement and Construction (EPC) companies like Larsen & Toubro (L&T), KEC International, Kalpataru Projects would be the beneficiaries from this capex approved from Indian Railways. Also, companies like Siemens and ABB are also likely to benefit as they are involved in key railway components.
Impact: Positive