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Business News/ Politics / Policy/  Rail budget: Infra, logistics firms among those that stand to benefit
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Rail budget: Infra, logistics firms among those that stand to benefit

A list of key proposals and firms that stand to benefit from railways’ Rs8.5 trillion investment plan

The government plans to expand the railways’ fleet of rolling stock and modernize station infrastructure. Photo: Ramesh Pathania/Mint (Ramesh Pathania/Mint)Premium
The government plans to expand the railways’ fleet of rolling stock and modernize station infrastructure. Photo: Ramesh Pathania/Mint
(Ramesh Pathania/Mint)

Mumbai: Provisions announced in the railway budget could help companies ranging from infrastructure providers to logistics firms, and companies providing food and sanitation-linked facilities and services to the railways.

The railways envisages an investment of 8.5 trillion in the next five years, which will be used to expand and electrify its network, increase rolling stock and redevelop railway stations. Here’s a list of key proposals and firms that stand to benefit:

l The government plans to expand the railways’ fleet of rolling stock and modernize station infrastructure. The station redevelopment policy will also be revamped and processes simplified by inviting open bids. Existing stations are being made available for development. These announcements are positive for GMR Infrastructure Ltd, GVK Power & Infrastructure Ltd and DLF Ltd.

l Indian Railways plans 77 projects involving expansion work covering 9,400km of tracks at a cost of 96,182 crore. This could be a positive for BEML Ltd, Texmaco Infrastructure & Holdings Ltd, Titagarh Wagons Ltd, and Kalindee Rail Nirman (Engineers) Ltd.

l Railway electrification of 6,608 km sanctioned for 2015-16, an increase of 1,330% over the previous year, is positive for Kernex Microsystems.

l Allocation of 120 crore for lifts and escalators at railway stations is positive for Schneider Electric India Pvt. Ltd.

l A planned re-look at public-private partnerships, reworking special freight train operator policy, wagon leasing policy, revamping the PPP (public-private partnership) cell in the Railway Board and standardizing model concession agreement on railways indicates that the government is looking at the private sector as an essential partner in railway development, said Angel Broking Ltd. This is positive for Allcargo Logistics Ltd. and Gateway Distriparks Ltd.

l Coaches in select trains connecting major tourist destinations may be offered to travel agencies on a revenue-sharing model. Thomas Cook (India) Ltd, Indian Hotels Ltd, ITC Ltd, Cox and Kings Ltd may benefit.

l E-catering to allow selection of meals from an array of choices and base kitchens to be set up and run by reputed agencies for serving quality food will benefit listed companies such as Jubilant Foodworks Ltd. Local brands may also benefit.

l 1,000MW solar plants will be set up on railway and private land and railway buildings with subsidy and viability gap funding support from the ministry of non-renewable energy in the next five years. This is a positive for Adani Power Ltd, Tata Power Co. Ltd, Essel Group and Welspun Renewables Energy Ltd.

l Focus on improving signalling and surveillance as part of improved safety measures could be positive for companies like Thales SA and Zicom Electronic Security Systems Ltd.

l New ticketing technology could benefit CMC Ltd.

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Published: 27 Feb 2015, 12:25 AM IST
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