SME Times News Bureau | 15 Jan, 2020
The ambitious construction projects such as
high-speed rail and dedicated freight corridors offer the Indian industry new
manufacturing opportunities worth Rs 28,000, said a new report.
The FICCI Capital Goods Committee report on 'Opportunities
for Capital Goods Industry with Indian Railways and Metros' said that under
ambitious construction projects such as high-speed rail and dedicated freight
corridors new business opportunities for Indian industry arise.
The report identifies specific opportunities
for industry across various areas such as rolling-stock manufacturing,
sub-assembly or component manufacturing, machinery and tool manufacturing, and
The report was released yesterday by Arun
Goel, Secretary, Department of Heavy Industry, and Mr Shailendra Roy, Chair,
FICCI Capital Goods Committee and Member of the Board, Larsen & Toubro Ltd.
Mr Shailendra Roy, Chair of FICCI Capital Goods
Committee, said, "Indian Railways is the lifeline of India's
social and economic structure. Industry participation is a must for next
generation of upgrades and expansion in Railways infrastructure and network.
Policymakers should promote this through both strategic initiatives such as
phased manufacturing programs, and policy and process reforms such as making
procurement contracts compatible with global standards."
FICCI report highlights that Indian Railways
has substantially stepped up capital expenditure from historical levels of Rs
40,000-50,000 crore per annum.
Railways' capital expenditure for 2019-20 was
Rs. 1.3 lakh crore, while budget for 2019-20 stands at Rs 1.59 lakh crore, as
it undertakes high priority initiatives such as electrification, rolling-stock
upgrade, track expansion.
Also, metro projects in multiple cities are in
various stages of execution.
FICCI report captures 'Voice of Industry'
through inputs from industry players associated with Railways and Metro
corporations. Industry players expressed great enthusiasm to pursue
opportunities with Railways and Metros with many targeting more than doubling
of business over the next 5 years. The industry players also appreciated the
transparency in bidding and tendering processes while voicing the pain points
they face against procurement policy and processes.