India’s railway sector is undergoing a transformative phase with a focus on modernization, efficiency, and enhanced connectivity. As one of the world’s largest railway networks, Indian Railways plays a critical role in the country’s economy by facilitating the movement of goods and passengers across vast distances.
With the government’s continued push for infrastructure development, the latest move to approve additional railway lines and multitracking projects in key regions promises to bring about significant improvements in the sector.
Union Cabinet’s Major Move
In a major development for India’s railway infrastructure, the Cabinet Committee on Economic Affairs, chaired by PM Narendra Modi, has approved four railway multitracking and new line projects across the states of Chhattisgarh, Maharashtra, and Odisha.
These projects are valued at Rs.18,658 crore and are expected to enhance connectivity and freight movement across these key regions. The Project spans 15 districts across Maharashtra, Odisha, and Chhattisgarh, These projects will expand the Indian Railways network by approximately 1,247 km.
Key Benefits of the Railway Expansion Projects
The expansion will focus on increasing the number of tracks, improving line capacity, and reducing congestion. This initiative is part of the government’s broader strategy to modernize Indian Railways, making it more efficient and competitive, especially in high-demand corridors.
The projects under the PM Gati Shakti National Master Plan support the government’s goal of seamless, multi-modal connectivity. They aim to boost industrial growth, enhance supply chain efficiency, and create job opportunities.
A total of 19 new stations will be built, improving access to around 3,350 villages and benefiting about 47.25 lakh people. The projects will also strengthen rail connectivity to two Aspirational Districts—Gadchiroli in Maharashtra and Rajnandgaon in Chhattisgarh—helping drive regional development.
The projects are slated for completion by 2030-31, marking a significant step toward modernizing India’s railway infrastructure and enhancing connectivity across key industrial and rural regions.
Stocks That Could Benefit from the Railway Expansion
The government’s approval of these railway projects is expected to positively impact several companies in the infrastructure, construction, and manufacturing sectors. Below are a few stocks likely to benefit from this boost in railway infrastructure development:
IRCON International Ltd
IRCON is a major player in railway infrastructure projects, including track laying, station building, and the construction of new lines. With the government’s push for railway development, IRCON’s order book is expected to grow, making it a prime beneficiary of the recent cabinet decision.
L&T Ltd (Larsen & Toubro)
L&T, a leading construction and engineering company, has extensive experience in executing large infrastructure projects, including railways. With the expansion of rail tracks and construction projects, L&T stands to gain from new contracts related to multitracking and station upgrades.
GMR Infrastructure Ltd
As a key player in infrastructure development, GMR’s expertise in building and upgrading transport infrastructure could see them securing new projects related to rail expansion. GMR’s involvement in airport and highway projects may also extend into the railway sector, leading to growth opportunities.
Bharat Forge Ltd
Bharat Forge, a major supplier of engineering and forging products, plays a significant role in manufacturing components for railways. The approval of new railway projects will lead to an increase in demand for their products, particularly for rolling stock, making Bharat Forge a potential beneficiary.
BEML Ltd
BEML, a public sector undertaking, manufactures railway rolling stock, including coaches and wagons. With the rise in demand for new lines and rolling stock under the multitracking project, BEML is well-positioned to benefit from the increased procurement of railway equipment.
Written by Sridhar J
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