Construction cruises for Rs.90k cr booster

According to the rating agency ICRA, the country’s construction sector is all set to get Rs.90,000 crore booster in the next three to five years due to the ever growing metro rail network to newer cities across the country. As a matter of fact, development of metro rail is being planned in over 30 Indian cities. In addition, new network is to be developed in another 15-20 cities and this in turn, will boost the order book of construction companies to newer highs. It further concluded that metro rail sector has seen strong traction in the last couple of years and is expected to provide sizeable opportunities for construction companies due to strong pipeline of projects which are in approval or planning stage.

Currently, Metro Rail network is fully or partly operational in nine cities and another five cities have under-implementation metro projects. The rating agency said that the overall cost of expansion of operational and under implementation approved metro projects is over Rs.2.5 lakh crore, thus, supporting the order books of construction contractors. In totality, roads and urban infrastructure, including metro rails are two key segments which have witnessed robust order inflows for the construction companies in recent times, Senior Vice-President and Group-Head, Corporate Ratings, ICRA, K Ravichandran said.