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Four strategic multitracking railway projects in India’s four states with an estimated cost of \u20b99,450 crore have been approved by the Cabinet Committee on Economic Affairs (CCEA). The historic move is expected to extend India’s rail network by hundreds of kilometres, freeing up space on some of the nation’s busiest freight tracks, according to a Times of India report.<\/p>\n
This is not only a government infrastructure announcement, it is a market signal to entrepreneurs, manufacturers and MSME owners. For each kilometre of new track there are tonnes of steel, concrete sleepers, fasteners, ballast, signalling equipment, electrical components, and safety equipment. When each new station comes comes up, it’s construction materials, furniture, lighting systems and facility management. Each extra train movement generates further demand for locomotive spares and maintenance spares, brake systems, and other train running parts.<\/p>\n
To put it simply, the government’s expenditure of \u20b99,450 crore has a multiplier effect that is several times the value in terms of manufacturing, services, and supply chain opportunities. Approval comes in the wake of India’s overall PM Gati Shakti master plan, which aims to bring together the rail, road and logistic networks into a single national network, as reported by the Times of India. The challenge before all Indian MSME owners today is how to see how they can participate in the opportunity.<\/p>\n