Metro Rail projects in India have gained momentum and robust order inflows for the construction companies are likely to consolidate the construction industry in the coming few years, rating agency ICRA said.
India plans to develop metro rail projects in over 30 Indian cities. Currently, the metro rail network is operational or partly operational across nine cities (Delhi, Bangaluru, Chennai, Kochi, Mumbai, Kolkata, Jaipur,etc..) and another five cities have under-implementation metro projects(Hyderabad, Lucknow, Nagpur, Ahmedabad, Pune etc.)
“Roads and urban infrastructure, including Metro Rails are two key segments which have witnessed robust order inflows for the construction companies. Further, with a sizeable pipeline of projects in these segments, the construction sector is expected to have sufficient order inflows and companies with strong track record and healthy balance sheet are expected to exhibit strong growth going forward,” K Ravichandran, Senior Vice-President and Group-Head, Corporate Ratings, ICRA, said.