We are targeting various opportunities in Dedicated Freight Corridor and bullet train projects
Indian Railways (IR) has witnessed significant progress in the last few years. Capex allocation of IR has grown substantially by about five times - from Rs 50,000 crore in 2014-15 to Rs 2.45 lakh crore in 2022-23. Significant capex is going towards expansion and modernization of the IR network. Railway infrastructure will see an investment of Rs 50 lakh crore during 2018-2030.
- Kaushal Kodesia
Executive Director - Railways, KEC International Ltd
How do you look at the current scenario of Indian Railways? What are the key developments happening?
Indian Railways (IR) has witnessed significant progress in the last few years. Capex allocation of IR has grown substantially by about five times - from Rs 50,000 crore in 2014-15 to Rs 2.45 lakh crore in 2022-23. Significant capex is going towards expansion and modernization of the IR network. Railway infrastructure will see an investment of Rs 50 lakh crore during 2018-2030. In the recent years, works under Mission Raftaar (Speed upgradation project of IR) such as 2×25 kV overhead electrification, traction substation and Kavach are ongoing at a considerable pace. IR's Mission 100% Electrification has also received a major boost over time. It is heartening to note that IR has completed electrification of almost 81% of total broad gauge network till 30th September 2022.
Capacity augmentation works are being taken up on a priority basis. In the current fiscal, over 1,350 track kilometres (TKM) of new lines, gauge conversion and multi tracking projects have been completed across the country. Further, IR's Mission 3000 MT is expected to expedite the pace of capacity enhancement works in the next five years.
In pursuance of Prime Minister's vision of 'Gati Shakti' and the Ministry of Railways' 'Gati Shakti Multi-Modal Cargo Terminal' (GCT) policy launched in December 2021, Gati Shakti Cargo Terminals are being developed for handling cargos of railways. Recent cabinet approval of the policy for long-term leasing of railway land for the PM Gati Shakti programme has been a welcome step. So far, 15 GCTs have been commissioned and around 96 more locations have been provisionally identified for development of GCTs.
Indian Railways is planning to spend more than Rs 1 trillion on developing and procuring assets. What opportunities do you look at for your company?
As part of the government's infrastructure push, the Indian Railways is planning a significant amount on developing and procuring assets. The national transporter is planning to procure 90,000 wagons over the next three fiscal years. Being an EPC contractor, we do not see much opportunity in this area.
In spite of the vast railway network, Indian Railways still lag behind in operational efficiency. What steps are needed to improve the efficiency in terms of modernizing railway infrastructure?
Several steps like adoption of latest technologies, partnership with relevant stakeholders, time-bound execution of projects, innovative financing methods, etc. can contribute towards improvement of IR's operational efficiency. In order to improve operational efficiency, IR launched a new innovation policy called StartUps for Railways which seeks to leverage new technologies developed by local entrepreneurs. This is a step in the right direction.
IR is making significant strides towards upgrading its rail network, operations and systems using Big Data, IoT and AI. Some of the major areas in which IR is trying to automate through data-driven decision making using AI are train scheduling, controlling the speed profiles of trains, asset management, etc.
Government has taken up various initiatives of revival and modernization of railway stations, railway lines and supporting infrastructure. How far this will support the overall railway infrastructure?
Redevelopment of railway stations has been a major focus area of the government. This will not only have a multiplier effect in the economy with increased job creation but also result in improved economic growth. Furthermore, railway station development forms the major chunk of asset monetisation plans of Indian Railways.
Construction of station infrastructure and expansion of railway network will bring a significant overhaul on the railway infrastructure.
Over 500 km of metro rail network has been constructed in the past 8 years and work for another 1,000 km network is underway in the country, according to the PM's recent statement. How are you looking at this as an opportunity for the company?
Given the government's focus on infrastructure development, the metro rail network is expected to witness 2.7 times expansion in the next five years. Typically, civil construction and systems work account for ~45% and ~20% of the overall project cost. Given the large size of the metro projects, this is likely to offer huge opportunities for construction companies in the coming years.
With our well-diversified portfolio of services in civil works as well as technology-intensive areas of urban infrastructure, we are well-placed to tap into a wide range of opportunities arising in the urban transport sector in the coming years. We have successfully diversified and deepened our presence in the metro rail business in India across all technology-enabled areas - overhead electrification, power supply systems, third rail, ballast less tracks, elevated viaducts, stations and depot-cum-workshops.
Which are the ongoing railway and metro projects the company involved with? What are the company's future plans in the railway and metro space?
We are currently executing several railway projects in areas of overhead electrification, doubling and tripling of tracks and new railway lines, civil infrastructure works such as road over bridge, bridges, tunnels, stations, and platforms, and establishing signalling & telecommunication systems and traction substations. We have widened our presence in mainline segments such as speed upgradation, port connectivity, tunnel ventilation and railway siding. We are currently executing 65% of 2×25 kV OHE projects under Mission Raftaar.
In metros, we are implementing about 20 metro rail/regional rail projects valued at over Rs 7,000 crore. We are undertaking projects from reputed clients like Delhi Metro Rail Corporation (DMRC), Chennai Metro Rail Limited (CMRL), Kochi Metro Rail Limited (KMRL), National Capital Region Transport Corporation (NCRTC), Madhya Pradesh Metro Rail Corporation (MPMRC), and Rail Vikas Nigam Limited for Kolkata metro works.
Going forward, we are targeting various opportunities in Dedicated Freight Corridor and bullet train projects. We are also targeting international markets by leveraging on the global strengths and experience of our T&D business.
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