Source: Indolink linkedin post, 25 January 2023
As slogan of Indian Railways " Lifeline of Nation" perfectly articulates, Indian Railways sector is vital component of country's economy. It provides transportation for millions of people and goods on daily basis. The sector is undergoing modernization with focus on reducing cost, increasing efficiencies and improving passenger experience. Railways ministry has announced plans to invest heavily in the sector with objective of upgrading existing and building new infrastructure. with recent introduction of trains like "Vande Bharat Express" India is demonstrating its strengths under ambitious "Make in India" campaign.
These developments present multiple opportunities for investors and companies looking to capitalize on growth of Indian market. India is projected to account for 40% of the total Global share of rail activity by 2050
Ongoing growth of Indian Railways sector necessitates continuous Investments in areas such as track expansion, track upgradation, electrification, improvements in safety provisions, efficient operations and improvised passenger experience. In view of these needs, Indian railways has set capital expenditure push of approximately 325,000 million USD, 14% higher than previous financial year.
This opens up opportunities in several areas/projects such as:
Ø Building of railway tracks, wagons, trains, electrification, signaling.
Ø Operation and maintenance of trains and Railway lines.
Ø Development of high speed Rail corridors
Ø Railway digitization and automation, including the development of smart Railway systems, Data Analytics and artificial intelligence
Ø New products and logistics services for small farmers
Ø Integration of postal and Railways networks for movement of parcels.
Ø 15000 kms are being converted into automatic signaling.
Ø 37000 kms being fitted with "Kavach" domestically developed train collision avoidance system.
Ø Redevelopment of Railways stations through PPP model.
Ø Development of goods - sheds at small stations.