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NIP Envisages Investment in Indian Railways Worth INR 11.43 Lakh Crore Till 2024-25

The envisaged investment of Rs 11.43 lakh crore till 2024-25 is expected to bring in huge opportunities for the wire and cable industry.

June 9, 2021

Indian Railways
Indian Railways

Infrastructure Development forms the bedrock of the economic growth of a nation. The exponential increase in population puts pressure on the existing provision for civic amenities necessitating scaling up of infrastructural investment to the tune of INR 50 trillion to achieve sustainable development by 2022, as per a recent report.

The Government of India has laid an ambitious target to allocate USD 1.4 trillion between 2019 and 2023, including investment to the tune of USD 750 billion on the railway infrastructure by 2030. Other initiatives to incentivize infrastructure development include the INR 102 trillion- worth National Infrastructure Pipeline (NIP) encompassing sectors such as roads, railways, ports, airports, urban, power, telecom, etc.

Indian Railways is an integral component of infrastructural development in the country. India boasts among the largest rail systems under single management in the world. Taking cognizance of its significance in overall infrastructural development, the NIP envisages the investment in Indian Railways worth Rs 11.43 lakh crore till 2024-25.

Rail Land Development Authority (RLDA) is spearheading the redevelopment of 60 railway stations across India on a PPP Model.

The station redevelopment comprises two components- i) Mandatory station redevelopment ii) Station Estate (Commercial) development. The mandatory station redevelopment will make travel smooth and hassle-free without diluting the historical significance of these stations whereas commercial development will enable developers to tap several revenue streams to ensure the viability of the entire project. These redeveloped stations will be endowed with state-of-the-art amenities such as segregation of arrival and departure, excellent road connectivity with multi-modal transport integration, security and surveillance systems to enhance the travel experience. It will augment the tourism potential, boost real estate, encourage employment generation and lead to a cascading effect on the local economy.

Also Read: Gujarat Discoms Sign Pacts for 3979 Solar Power Projects With 2500 MW Capacity.

The Indian Railways is just an example of realizing the benefits of PPP to accelerate infrastructural development. Fostering innovation and incorporating learning from across the world will be the key to unlocking its plethora of benefits and realizing the dream of the 5 trillion dollar economy by 2024.