Higher Outlay for Railways can Spur Construction

NEW DELHI: The Railway Budget’s merger with the Union Budget will lead to an increased outlay for the railway sector giving significant opportunities for construction sector, rating agency ICRA said on Friday.

“The merger of the Railway budget with the central budget will provide an additional leeway for an increased outlay,” said K. Ravichandran, Senior Vice-President and Group-Head, Corporate Ratings at ICRA. “While a major part of the outlay is expected to be towards the ongoing projects, sizeable newer projects are also expected to be awarded, providing construction opportunities, particularly for large players.”

Indian Railways plans to spend ₹8.56 lakh crore over five years for infrastructure creation.