The domestic metro rail projects will provide business opportunities worth Rs 80,000 crore for construction companies over the next five years, according to ICRA (Investment Information and Credit Rating Agency).
More 7 cities have under-implementation metro projects
According to the agency, 15 cities in India have operational metro networks of about 746 km (many of which are expanding), and another seven cities have under-implementation metro projects of about 640 km.
Generate Rs 80,000 crore in business opportunities
This is in addition to 1,400 km of metro rail projects worth Rs 2 trillion that are in the approval/proposal stages, of which 352-km of new metro network has been approved, with the remainder in the proposal stage.
It is estimated that metro rail projects will generate Rs 80,000 crore in business opportunities for construction firms over the next five years.
“Given the government’s push for infrastructure development, the metro rail network is likely to expand 2.7 times over the next five years.Typically, the cost of developing an elevated metro rail network ranges between Rs 280-320 crore/km, and the cost of developing an underground metro network could be much higher,” said Abhishek Gupta, Sector Head & Assistant Vice President, Corporate Ratings, ICRA.
According to him, civil construction accounts for 35-45 percent of total costs. Given the magnitude of the metro projects, this is likely to provide significant opportunities for construction firms over the next five years.
