NEW DELHI (Metro Rail News): The Metro Rail Project which is Under construction could be the next big thing for the construction company in coming years as these are likely the source of the strong incremental order for big contractors.
In the next five years, Metro rail projects which are under construction to generate an order of Rs 2.5-2.6 lakh crore. This would entail an investment of Rs 3.5-3.6 lakh crore in the same period. It is estimated that 55-60 percent of this order is likely to be in the construction segment.
In India, there are 67 metro projects across 27 cities and almost 54 projects are in various stages of development. The remaining metro rail projects are operational. These stages are under-construction, conceptual, approved and partly operational.
The construction of metro rail projects across 27 cities can be divided into three categories: civil construction (tunnels, bridges, and stations), systems (signalling, communication systems) and rolling stock (gauges, locomotives, wagons). Of these three categories, civil construction forms bulk of the order.
Mumbai has the largest under-construction metro rail projects covering 295 km among 27 cities. L&T, NCC, J Kumar Projects, NCC, Dilip Buildcon, Texmaco Rail and Titagarh Wagons are among the favorites to grab these orders among the construction companies.
In the coming quarters, for smooth awarding of projects, there are two factors most analysts will be keenly monitoring. One, how swiftly state and central governments provide hassle-free land for development of metro rail. The other is how efficiently the central and state governments raise capital to fund these projects.