FCC

Indian Railways to transform with $325 Billion investment

2023-08-17

Indian Railways is on the cusp of a transformational journey as the Union Cabinet, chaired by Prime Minister Narendra Modi, grants approval to seven ambitious multi-tracking projects, injecting a substantial investment of $325 billion. Union Railway Minister Ashwini Vaishnaw, in a recent briefing, underscored the monumental impact these projects are poised to deliver, ushering in a new era of rail efficiency and connectivity.

The crux of these transformative initiatives lies in the strategic integration of the Engineering, Procurement, and Construction (EPC) model, which is set to streamline execution, ensuring rapid development across the board.

Collectively, these projects encompass a length of 2,339 kilometres, serving to expand the existing rail network substantially and providing a significant boost to accessibility and connectivity. Ashwini Vaishnaw emphasised the interdependence of these projects, urging stakeholders to perceive them holistically, as they collectively contribute to the modernization and advancement of Indian Railways.

The projects extend beyond mere expansion, aiming to alleviate congestion and elevate operational efficiency, thus revolutionising the rail ecosystem.

A standout feature of these projects is their complete funding by the central government, underlining a resolute commitment to the comprehensive overhaul of India's rail infrastructure.

Encompassing 35 districts across states such as Andhra Pradesh, Bihar, Gujarat, Jharkhand, Maharashtra, Odisha, Telangana, Uttar Pradesh, and West Bengal, these initiatives are projected to not only elevate infrastructure but also augment freight capacity by accommodating an additional 200 million tonnes of freight traffic annually.

The government's comprehensive presentation accentuates that these projects go beyond infrastructural advancements, serving as catalysts for substantial employment generation. Approximately $70.6 million person-days of work are anticipated to be created for residents in the states where these transformative projects are being executed, reiterating the government's commitment to holistic development and progress.