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 project execution.

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.