Indian Railways is considering a total of 1,318 railway stations for redevelopment under the Amrit Bharat Station Scheme. Initially, the government planned to implement most station redevelopment projects through the Public-Private Partnership (PPP) model, which was expected to contribute around 12% to the National Monetisation Pipeline (NMP) target. However, due to limited participation in PPP projects—caused by pricing restrictions, market risks associated with real estate development, and the lack of a strong track record in railway PPPs — the government shifted to an Engineering, Procurement, and Construction (EPC) model for station redevelopment in December 2022. To support this transition, the budget allocation increased significantly, from Rs 2,159 crore in FY2023 to Rs 15,511 crore in the FY2025 Budget Estimates (BE), and is expected to remain robust in the medium term.
Railway Station Redevelopment Under Amrit Bharat Station Scheme With EPC strategy
ICRA now anticipates that the EPC companies will now have business opportunities worth Rs 30,000 crore over the next two years related to this railway station redevelopment. Vinay Kumar G, Sector Head for Corporate Ratings at ICRA, highlighted that while competition remains high in traditional sectors like roads and buildings, the redevelopment of railway stations presents significant growth opportunities for construction companies, estimated at Rs 30,000 crore. This sector offers a chance for companies to expand and reduce risks by diversifying.
Also ReadAmrit Bharat Station Scheme: Airport-like facilities for passengers at Madurai Junction – Multi-level parking, modern air concourse and much more!
Over the past two years, station redevelopment project tenders have seen moderate competition, with discounts reaching up to 18%, and the median discount being around 4%. This trend is similar to other railway EPC projects, where the median discount is around 5%. Given that Indian Railways is a reliable counterparty, the receivable cycle is expected to be short, comparable to that of the National Highways Authority of India (NHAI).
Which Railway Stations are included under the EPC model?
The key railway stations awarded redevelopment under the EPC model include Mumbai’s Chhatrapati Shivaji Maharaj Terminal (CSMT), Ahmedabad, Surat, Prayagraj, Bangalore Cantt, Chennai Egmore, and Secunderabad, among others. Additionally, tenders for 765 more stations are still pending, with notable stations like New Delhi, Pune, Borivali, Mumbai Central, Thane, and Amritsar yet to be awarded.
» Read More
