ICRA projects business opportunities worth ₹30,000 crore for engineering, procurement, and construction (EPC) players over the next two years, driven by the further accelerate the execution of these Indian Railways’ plan to redevelop 1,318 stations under the Amrit Bharat Station Scheme (ABSS).
Initially planned under the Public-Private Partnership (PPP) mode, the redevelopment projects faced challenges such as pricing restrictions, market risks in real estate, and limited PPP experience in the railways. To address these issues, the Government shifted the projects to the EPC mode in December 2022.
This transition has been supported by a substantial increase in budgetary allocation, rising from ₹2,159 crore in FY2023 to ₹15,511 crore in FY2025 Budget Estimates. The funding is expected to remain robust in the coming years, ensuring steady progress in station redevelopment initiatives.
Giving more insights, Vinay Kumar G, Sector Head, Corporate Ratings, ICRA, said: “The competition, in traditional segments like roads and buildings, remains elevated and hence the railway station redevelopment provides business opportunities estimated at ₹30,000 crore for construction companies to grow and derisk their businesses through diversification.
The station redevelopment project awards witnessed moderate competition in the past two years, reflecting maximum discounts of up to 18% and a median discount of up to 4% and have been similar to other railway EPC projects where the median discount is up to 5%. Indian Railways, being a strong counterparty, the receivable cycle is also expected to remain low and comparable to that of the NHAI.”
Among the stations being taken up for redevelopment under the ABSS, Uttar Pradesh has the maximum number – 149 stations – followed by Maharashtra 126, West Bengal 94, Gujarat 87, Bihar 86, Rajasthan 82 and Madhya Pradesh 80. Foundation stones have been laid for 553 stations and a total of more than ₹20,000 crore of station redevelopment projects has been awarded till date.
Currently, the key awarded stations under the EPC mode include – Mumbai (Chhatrapati Shivaji Maharaj Terminal/CSMT), Ahmedabad, Surat, Prayagraj, Bangalore Cantt, Chennai Egmore and Secunderabad etc. Furthermore, the awards for 765 stations are pending and some of the key stations like New Delhi, Pune, Borivali, Mumbai Central, Thane, Amritsar etc. are yet to be awarded.
The redevelopment of railway stations across India is expected to generate engineering, procurement, and construction (EPC) opportunities worth ₹30,000 crore, according to a report by credit rating agency ICRA. The Indian Railways’ ambitious station modernization plan aims to enhance passenger experience, improve infrastructure, and boost economic growth.
The government has identified over 1,300 stations for redevelopment, with a focus on modernizing facilities, enhancing multimodal connectivity, and introducing energy-efficient infrastructure. The projects will include upgraded concourses, improved platforms, better amenities, and advanced safety features.
The redevelopment will be executed under various models, including EPC contracts and public-private partnerships (PPP). ICRA’s report highlights that the EPC sector will significantly benefit from this large-scale infrastructure push, with construction companies expected to see increased order inflows.
Key areas of work include civil construction, electrical installations, signaling systems, and sustainable design implementation. The government’s strong policy support and funding allocation will further accelerate the execution of these projects.
Besides infrastructure companies, the redevelopment will also create opportunities for technology providers, urban planners, and smart mobility firms. With railway plan aims to enhance passenger experience, stations evolving into commercial and transit hubs, real estate and retail sectors are also likely to benefit.
As India moves towards modernizing its railway network, the ₹30,000 crore EPC opportunity underscores the government’s commitment to infrastructure growth, job creation, and enhancing the overall efficiency of rail transport.
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