Indian Railways’ ambitious Amrit Bharat Station Scheme (ABSS) is set to transform the landscape of railway stations across the nation, opening up business opportunities worth Rs 30,000 crore for engineering, procurement, and construction (EPC) players over the next two years, according to ICRA.
Under the ABSS initiative, 1,318 railway stations are earmarked for redevelopment. Initially, the Government of India (GoI) aimed to execute these projects under the Public-Private-Partnership (PPP) model, which accounted for 12 per cent of the National Monetisation Pipeline (NMP) targets. However, due to challenges such as pricing restrictions, market risks in real estate development, and a limited track record of PPP projects in railways, the government pivoted to the EPC mode in December 2022.
Budget Boost Fuels Redevelopment
The government significantly increased budgetary allocations to support the shift. From Rs 2,159 crore in FY2023, allocations soared to Rs 15,511 crore in the FY2025 Budget Estimates (BE), ensuring a healthy funding pipeline for the medium term.
Sector Insights
Vinay Kumar G, Sector Head, Corporate Ratings, ICRA, highlighted the immense potential for construction companies to diversify through railway station redevelopment. “The competition, in traditional segments like roads and buildings, remains elevated and hence the railway station redevelopment provides business opportunities estimated at Rs 30,000 crore for construction companies to grow and derisk their businesses through diversification. The station redevelopment project awards witnessed moderate competition in the past two years, reflecting maximum discounts of up to 18 per cent and a median discount of up to 4 per cent and have been similar to other railway EPC projects where the median discount is up to 5 per cent. Indian Railways, being a strong counterparty, the receivable cycle is also expected to remain low and comparable to that of the NHAI,” he said.
Progress and Future Scope
Foundation stones for 553 stations have been laid, and over Rs 20,000 crore worth of projects have already been awarded under the EPC model. Prominent stations like Mumbai’s Chhatrapati Shivaji Maharaj Terminal (CSMT), Ahmedabad, Surat, Prayagraj, Bangalore Cantt, Chennai Egmore, and Secunderabad are among the key projects in progress. Meanwhile, awards for 765 stations are still pending, with major hubs such as New Delhi, Pune, Borivali, Mumbai Central, Thane, and Amritsar yet to be assigned.
State-Wise Redevelopment Snapshot
Uttar Pradesh leads the charge with 149 stations, followed by Maharashtra (126), West Bengal (94), Gujarat (87), Bihar (86), Rajasthan (82), and Madhya Pradesh (80).
The railway station redevelopment initiative represents a monumental step in enhancing the passenger experience while offering a lucrative avenue for construction companies to expand their horizons. With strong government backing and steady progress, the EPC mode is paving the way for a modern, efficient, and sustainable railway infrastructure.