ICRA: Metro projects will generate Rs 80,000 crore in revenue for construction firms

21 Jun 2022 , 03:32 PM

According to ICRA, domestic metro rail projects would present construction businesses with commercial prospects totaling Rs 80,000 crore over the next five years.

In India, 15 cities have 746 km of operating metro networks (several of which are undergoing development), according to the agency, with another seven cities having 640 km of under-implementation metro projects.

Apart from that, there is 1,400 km of metro rail projects costing Rs 2 trillion in the approval/proposal phases, with 352 km of new metro network authorized and the rest in the proposal stage. Construction businesses will be able to earn Rs 80,000 crore from metro rail projects over the next five years, according to the report.

“Given the government’s emphasis on infrastructure development, the metro rail network is expected to expand by 2.7 times in the next five years.” “The cost of developing an elevated metro network typically runs between Rs 280-320 crore/km, while the cost of developing an underground metro network might be significantly higher,” said Abhishek Gupta, Sector Head & Assistant Vice President, Corporate Ratings, ICRA.

Civil construction accounts for 35-45 percent of the total expenditure, according to him. Given the massive scale of the metro projects, construction businesses are projected to benefit significantly during the next five years.