Indian Economy News

Metro rail projects to offer ₹80,000 cr opportunity for construction cos: Icra

  • IBEF
  • June 22, 2022

According to a research report by ICRA, metro rail projects are expected to generate Rs. 800 billion (US$ 10.26 billion) of opportunities for construction companies over the next five years.

In India, 15 cities have operating metro networks with a total length of 746 km (several of which are undergoing network extension), while another seven cities have metro projects with a total length of 640 km. Apart from that, 1,400 km of metro rail projects with a total value of US$ 2 trillion are in the approval/proposal stage.

Due to the limited number of companies in the sector, the competition intensity has remained moderate, with no signs of aggressive bidding as seen in other infrastructure segments such as roads and railways.

“Given the Government’s thrust for infrastructure development, the metro rail network is likely to witness 2.7 times expansion in the next five years, said” Mr. Abhishek Gupta, sector head & assistant vice president, corporate ratings, ICRA.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.