According to ICRA, EPC companies now stand to gain business opportunities worth Rs 300 billion over the next two years related to railway station redevelopment. Vinay Kumar G, Sector Head for Corporate Ratings at ICRA, noted that while competition remains intense in traditional sectors like roads and buildings, the redevelopment of railway stations presents substantial growth opportunities for construction companies, estimated at Rs 300 billion. He emphasised that this sector provides a chance for companies to expand and mitigate risks by diversifying.

Over the past two years, tenders for station redevelopment projects have faced moderate competition, with discounts of up to 18 per cent, and the median discount standing at about 4 per cent. This trend mirrors other railway EPC projects, where the median discount is around 5 per cent. Given that Indian Railways is considered a reliable counterparty, the receivable cycle is expected to be short, similar to that of the National Highways Authority of India (NHAI).

Key railway stations awarded redevelopment under the EPC model include Mumbai’s Chhatrapati Shivaji Maharaj Terminal (CSMT), Ahmedabad, Surat, Prayagraj, Bangalore Cantt, Chennai Egmore, and Secunderabad, among others. Additionally, tenders for 765 more stations are still pending, with notable stations such as New Delhi, Pune, Borivali, Mumbai Central, Thane, and Amritsar yet to be awarded.