Indian Railways is planning a capital expenditure (capex) of around Rs1.3 trillion for the financial year 2017-18, the highest-ever capital outlay. The national transporter is also expecting a gross budgetary support (GBS) of around Rs55,000 crore from the finance ministry. The gross budgetary support for railways was around Rs45,000 crore for the current fiscal year. With the merger of railway budget and the Union budget, the railway ministry and industry is hopeful that finance ministry would increase budgetary support to boost growth in the infrastructure sector. Edelweiss Capital in a report had said in the next 10 years, investments in railways will far outstrip those in national highways. For EPC (engineering, construction, procurement) companies, rail revolution will open up an entire new segment for orders. For companies in capital goods, power, ports, cement, logistics and metals/mining space, this will spell better volumes and cost reduction, said Edelweiss report. The increased orders from railways is likely to benefit several engineering and construction companies. Several global companies like Hyperloop Technologies Inc., Spain’s Talgo SA, Germany’s Siemens AG and Knorr Bremse AG, are already trying to woo Indian policymakers with their transport technologies.
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