India Govt to Spend ₹30K Crore on Rail Revamp

Chennai: The government is expected to spend more than Rs 30,000 crore on railway station redevelopment over the next two years. As many as 1318 stations are considered for redevelopment.

Allocation for station redevelopment works has increased by more than 8 times from Rs. 1,903 crore in FY2020 to Rs 15,511 crore in FY2025 BE. The overall allocation for station redevelopment is expected to be more than Rs. 30,000 crore over the next two years. Of these, the estimated cost of redevelopment of major stations under the Rail Land Development Authority (RLDA) phase I is likely to be around Rs 17,000 crore.

A total of 1318 stations are being considered for redevelopment under the Amrit Bharat Station Scheme. Foundation stones have been laid for 553 stations and another 765 are pending redevelopment. Earlier, the government was expecting private participation in the station development project, but given the muted response, the projects are now awarded under the Engineering, Procurement and Construction (EPC) mode, finds ICRA.

Although the overall railways capital outlay has been growing at a modest 2 per cent year-on-year, it has reached Rs. 2.65 lakh crore in FY2025 BE. Further, railway projects enable the ministry to meet the sizable targets under the National Infrastructure Pipeline (NIP). Almost 95 per cent of the railway tracks have been electrified.