PM Modi Launches 2000 Railway Projects: Top Stocks Benefited

Introduction

India's vast railway network, often referred to as the lifeline of the nation, is undergoing a remarkable transformation. With over 2000 projects and an upcoming expenditure of 41,000 Cr, the railway sector is on an exciting trajectory of growth. Let's take a joyride into the heart of this revolution and explore the key players making it happen.

The Growth Story

India ranks 4th globally in terms of railway network size, trailing only behind the USA, China, and Russia. But what's even more fascinating is the recent surge in the railway sector's development. The recent fiscal years have witnessed a significant surge in the railways sector, with an amount of 2.55 lakh crores allocated in the latest budget, following a trend of continuous investment. 

Vande Bharat trains, Freight corridors, and extensive new railway lines have become the face of a renewed commitment to a robust railway network. The sheer scale of development, averaging 14 km of new lines daily in 2023-2024, is a testament to the sector's unmatched growth.

Key Infrastructure Projects

Breaking down the massive figure, 27 states and 8 UTs will witness station redevelopment, featuring modern passenger amenities such as roof plazas, food courts, and play areas. Designs will draw inspiration from local culture and heritage, ensuring a blend of functionality and aesthetic appeal. Additionally, major road over bridges and underpasses, totaling 1500, are set to be constructed at a cost of 21520 crores.

 

Future Plans

With new railway lines, freight corridors, and trains in place, the government is shifting its focus to revamping stations and infrastructure. The announcement of the Amrit Bharat station Scheme, covering the redevelopment of 553 railway stations with a total cost exceeding 41000 crores, indicates a strategic move towards enhancing passenger experience and showcasing local culture and heritage.

These railway projects are not just on paper; they are racing ahead. In the last financial year, the government laid down over 5200 km of new railway lines – that's almost 14 km every day. This isn't just growth but it's a futuristic leap forward.

 

 

 

Stocks to Watch Out For:

The following companies are at the forefront of the railway revolution in India, playing crucial roles in the development and growth of the sector.

 

1. Kalpataru Projects:

• Global EPC player with diversified interests in power transmission, distribution, oil and gas pipelines, railways, and biomass-based power generation.

• 7% of the order book is dedicated to the railways sector.

• Order book of ~Rs. 47,300 crores, with footprints across 70 countries.

• Engaged in EPC, Kalpataru is contributing to railway corridors and signaling works.

• With the recent project announcements, the company is expected to receive further orders.

 

2. Rites Ltd:

• A leader in transport consultancy and engineering, Rites is involved in both domestic and international railway projects.

• Significant projects with Western Railways, Indian Railways, and North Western Railways showcase its prowess.

• Exclusive export arm of Indian Railways for rolling stock overseas.

• Diversified services include Consultancy, Exports, Leasing, and Turnkey / EPC segments.

• Total order book of Rs. 5496 Cr as of Dec 2023.

 

3. B.L. Kashyap & Sons Ltd:

• An EPC player with a focus on high-end infrastructure, the company has a history of working with Indian Railways.

• Recently completed the redevelopment of Gomti Nagar Railway station.

• With orders already in hand from Indian Railways, the company is well-positioned for future projects.

• Proven track record in working with Indian Railways.

• Pan India presence with diverse projects in IT campuses, commercial spaces, malls, and more.

 

4. GMR Power and Urban Infra LTD:

• Subsidiary of GMR Group, excelling in energy, urban infrastructure, and transportation.
• Active involvement in road projects, railway projects, bridges, and various infrastructure projects.
  
  
• Collaborating with DFCCIL, a fully owned subsidiary of Indian Railways.
  
  
• Operating capacity of over 4400 MW, with a global presence in multiple countries.

 

 

 

Conclusion

As the railway lines are laid, freight corridors established, and new trains unveiled, one might wonder, what's left for the railway sector? That's where you come in. Drop a comment, share your thoughts on the next segment the government should focus on in the railway sector.

In conclusion, India's railways are not just on the right track; they are on the fast track to a future that promises efficiency, modernization, and a renewed travel experience. Buckle up; the journey has just begun.