The sector has also garnered significant attention from the government. The proposed Metro Policy (currently under formulation) is a testimony to this. The new policy framework aims to rekindle private sector participation, facilitate innovative financing, improved project appraisal procedures, among other key measures. Meanwhile, the centre is promoting greater indigenisation in urban rail projects, in tandem with its ‘Make in India’ initiative. In addition, norms for project approval are also becoming more stringent, so as to ensure sustainability as well as prudent utilisation of financial resources.
The sector has a lucrative project pipeline. Broadly, the pipeline is comprised of ‘announced’, ‘approved’, ‘bidding’, and ‘under construction’ projects. The robust pipeline would also offer significant opportunities to a number of stakeholders. According to the research, there lies an opportunity of Rs 4,352 billion for players across various sectors such as construction, tunnel works, traction and E&M, rolling stock, fare collection, etc.
The sector remains stymied by a number of challenges. Financing remains a problem area, more so with banks reeling under the pressure from their non-performing loans. Limited private sector participation and limited success of PPP projects has also choked-off an important source of funds. Besides, land acquisition, securing of regulatory clearances, right of way, engineering issues, geotechnical challenges are some of the pressing concerns of the sector at present.
Some of these problem areas, however, are expected to be alleviated once the new Metro Rail Policy is put to execution. Besides, implementation of Kelkar Committee’s recommendations may also bring a positive change to the PPP landscape. The project pipeline, key learning points from past projects, strong support from the government, and initiatives such as Make in India and Smart Cities Mission bode well for the times ahead. However, the issues at hand must be addressed at the earliest in a bid to realise the full potential the sector offers.
The data sources in this report is both primary and secondary. The primary data is obtained from sources such as related ministries, industry experts, private companies, Conferences organized by us for the related sector etc. The secondary sources include annual reports of companies, industry associations, paid databases, web sites, etc. The analysts and researchers combine the information from these primary and secondary sources with their industry expertise to synthesize the data presented in the report. Surveys and interviews are also conducted for this research. For the surveys, Interviews with key players and relevant people in the sector are mainly conducted. They are mostly via telephonic as well as personal interviews.
Section I: Market Overview and Outlook
- Executive Summary
- Recent Developments(past 15-18 months)
- Project Pipeline, Opportunities and Outlook (till 2023-24)
- Economics and Financing
- PPP Potential
- Rolling Stock
- Signalling Train control and Telecommunications
- Fare Collection Systems
- Metro Tunnels
- Traction and E&M
- Operational and Under Construction Projects
- Announced and Planned Projects
- Metro Rail Projects
- Light Rail Transit Projects
- Mono Rail Projects