MARKET RESEARCH

Examining PPP Opportunities Across – Analyzing Growth Track for Private Players in Developing New Railway Stations , Modernizing the Existing Rail Infra, Network Expansion, Electrification of Railway Tracks, Commercializing of Railway Lands, Dedicated Freight Corridors, Installing Solar Power, Locomotive Manufacturing & Operating Private Trains till 2025

State wise business case assessment for OEMs, EPC Players, Power Management Solution Providers, TRANSCOs, DISCOMs, RE IPPs, PMCs, Investment & Financing Bodies across railways infrastructure development in

Feb 2021 Market Research Flash Report Why eninrac’s market research on Examining PPP Opportunities across Indian Railways Segment for Stations Infrastructure Development, Railway Electrification and Locomotives?

INR 50 Lakh Crores of investment is anticipated till 2030 Opportunity Assessment for Private Trains across 12 Regional across Indian Railways Segment for network expansion, Clusters in India till 2022-23 capacity augmentation, rolling stock induction and modernization of stations and freight corridors etc. Cluster I & II Cluster III & IV Cluster V Investment Opportunity Investment Opportunity Investment Opportunity Indian government has roll out a plan to have 151 privately (INR Crores) (INR Crores) (INR Crores) operated trains to run on 109 identified busy routes till 2027 that 2510 2330 2510 offers an investment opportunity of USD 4 Billion for private 2329 2329 players Mumbai Mumbai India owns the fourth largest rail network across the globe which has been 100% I II Delhi I Delhi II Chandigarh owned and operated by the government so far. Presently, the total rail network of India stands to be 67,000 kms , with about the 13000 passenger trains and 9000 freight trains carrying approximately 23 million passengers and 3.05 million tonnes Cluster IX of freight daily. Over the last many years the railways in India has witnessed Cluster VI Cluster VII Cluster VIII significant growth in terms of route expansion and in the number of new trains. Investment Opportunity Investment Opportunity Investment Opportunity Investment Opportunity But in the past six years a shift in the goals of Indian railways has been observed (INR Crores) (INR Crores) (INR Crores) (INR Crores) with increased focus on improving customer service and safety, financial 2510 2329 2329 2510 sustainability, modernizing the rail and stations infra, electrifying the rail networks, expanding the rail network to grow to offer great capacity & decongest crowded Secundrabad areas, high speed trains. Such initiatives are crucial and shall require strong Howrah Patna Prayagraj financial backing for its smooth development. Recognizing the financial imperative for these ambitious developments and timely plans for railways, Indian government Cluster XII Cluster X Cluster XI has been encouraging public private partnership (PPP). GoI is scouting investments Investment Opportunity Investment Opportunity Investment Opportunity from national as well international players for overhauling the current status of (INR Crores) (INR Crores) (INR Crores) railway infra in India to international standards. It has allowed 100% FDI under the 3221 2863 automatic route for the construction, operation and maintenance of suburban 2329 corridor projects, high-speed train projects, railway electrification and signalling, among others. A significant initiative taken recently by the government is Jaipur Bengaluru announcing the roll out plan for 151 private trains in the country to be operational by 2027 in a phased manner. Source: Eninrac Research, Ministry of Railways ENINRAC REPORTS Source: Eninrac Research, ofEninrac Source:Railways Ministry MARKET RESEARCH Zone Zone I Zone Zone IV Zone Zone VII 23 32 30 % % % – Northern – Eastern – 77 Zone Zone Wise Railway Electrification Status and Opportunity in the form Routes of to be Electrified (In Southern 68 70 % % % Zone Zone II Zone Zone V Zone Zone VIII 44 24 12 – % – North North Eastern % South South Eastern % – 88 Central % 56 76 % % Zone Zone IX Zone Zone III Zone Zone VI 38 49 % 92.3 % – – 7.7% – Western Northeast Northeast Frontier % 7.7% South South Central 51 % Zone Zone XII Zone Zone XIV Zone Zone X Percentage) till 2025 18 11 % – – 76 % – West Central South South Western Southeast Central % 82 77% 24 % % Zone Zone XIII Zone Zone XI 10 Zone Zone XV 67 – % 80 North North Central – % 5 95 % North North Western % 33% % – East East Coast Zone Zone XVI Zone Zone XVII Electrified Route be to Route Electrified 17 85 % – % East East Central – 83 15 Konkan % % 23,827RKM 63,631RKM for Railway for Railway Electrification in 39,866RKM Total Budgetary Allocation Total Broad Gauge (BG) Total BG route in India Total BG route in India Railway Railway route in India India from 2020 23,765 yet yet to be electrified electrified till date Crores INR - 24 Opportunity Assessment for Private Players Across Railway Infrastructure Development in India till 2025

Year wise likely plan of rolling out 151 private trains in India from 2022-2027 50 Rolling Stock 45 44 Network De-congestion & High Speed Rail and Elevated Manufacturing and Expansion Corridors Maintenance of Rolling Stock Network expansion and Approx. 10 Billion Investment to attract USD 15.6 Billion Decongestion including opportunity in High Speed Rail 12 investment opportunity till Electrification to attract USD and Elevated Corridors till 2025 60 Billion investment till 2025 2025 USD 9.7 Bn 2022-23 2023-24 2025-26 2026-27

USD 4 Bn Dedicated Freight Station Redevelopment 3 GW Corridors Programme 20 GW Commissioning of at least 50 USD 13.7 Billion investment to Station Commercial Already awarded Development Development freight terminal per year for develop 400 stations and bids for the Solar power capacity to be next 5 years commercial establishments at capacity to be State wise split of stations Station premises added till 2030 by utilizing commissioned by Jammu under pipeline for vacant lands of Indian Railways 2023 redevelopment 2 1 Charbagh, Lucknow Faridabad, Panipat

Stations have been Delhi Cantt 1 123 entrusted to RLDA for 06 16 1 62 redevelopment Stations for which Indian Bhuj 1 Tenders for Stations in pipeline 1 Puri Railways are currently working six stations for re for redevelopment for redevelopment under PPP Stations are the development have for 2021. Tenders to Vijayawada, Model 61 responsibility of IRSDC been invited yet to be invited 3 Vishakhapatnam, Renigunta

4 Kanyakumari, Rameswaram, Ernakulam Jn, Kozhikode Source: Eninrac Research, Ministry of Railways 2 Madurai, Tambaram ▪ ▪ ▪ ENINRAC REPORTS

lines/tracks etc. lines/tracks India in infrastructure forrailwayopportunity Evaluating etc corridors freight plants, solar rooftops, setting development, stations new lands, on railway opportunities commercialization , amenities better with modernization India in setting for opportunity Evaluating etc goodswagons high trains, speed India opportunity Evaluating MARKET RESEARCH - - construction of bridges, roads , tunnels, new rail new tunnels, , roads bridges,of construction infra, of art state with trains passenger private - for marketresearch? What’s differenceour margin electrification of rail tracks, railway stations stations railway tracks, railof electrification Coverage Coverage Range Our Market Research for railway infrastructure in in infrastructure railwayfor railway infrastructure infrastructure railway passenger tarins operations on select routesIndia in select on operations tarins passenger and Siemens haveAlstom undertake interestto expressedtheir Rotem, Hyundai India, IRCTC,CAF India, Hitachi Key Signpost distance distance of 900 routes, and the average distance of the routes is around 925 km. Each cluster has an indicative project cost and average trai player to manage. The indicative project cost of the Delhi Chennai, clusters based out of major city centres, such as Patna, Secunderabad, Bengaluru, Jaipur, Prayagraj, Howrah, PPP on DBFO basis with an approximate cost of INR 30,000 crores. Siemens Ltd and NIIFL. Associates & Hoteliers, PSCG Technologies, L&T Infra Development, ISQ, Asia Infrastructure Investments, Limited, Megha Engineering & Infrastructure, JKBInfrastructure, Gateway Rail, Jasan Infra Pvt Limited, RK Power, IRCTC, , Bombardier Transportation, BEML, GMR Infrastructure, Hind Rectifiers 23 firms have shown interest, including major players such as financing, procuring, operation and maintenance of the new trains , a majority of which will be manufactured in India. for a maximum speed of 160km/h and will be of length 384 meters. The selected private players shall be responsible for These trains Chandigarh to to be run on 109 identified busy routes with a contract period of 35 years. These private trains shall be designed - ▪ ▪ ▪ 1052 km. our research credentials for the subject the deemed for credentials research our to value immense adds which Experts GridKnowledge cross with procedures time turn strict follows report research Any market levels different from through sourced and filtered is which feed market robust quality generate us high helps which paramount connect is industry on focus nurturing Our domains different across companies top in working of experience having professionals research market of team experienced and qualified highly aWe boast , and two each for Delhi and Mumbai. Each cluster is an independent business project, inviting a private – Team of Domain Specialists Our Market Research DNA & Players as such In July 2020, GoI has issued RFQs for operation of passenger trains in 12 regional clusters through - vetting from our our from vetting Tata& Infrastructure,Realty Bombardier, - 2 cluster is INR 2,329 crore. It has 12 origin Medha Medha Infracon, Alstom Transport, Bharat Forge, Sterlite - around For For these private trains, - organization across 40+ countries. countries. 40+ across organization & 1000+ companies Group 257+ than more for value augmentingresource an and objective partner research market trusted is a consulting Eninrac the globe. across locations geographic different and from domains industry of variety widehave been from client’s Our clientele. satisfied many rate and retention client phenomenal a with We have been bestowed rate of over 97.6% on yoy basis Our Satisfied Patrons and Retention Essel, Adani, Talgo, the routes are divided into 12 - destination pairs as As As many as n What environment is transpiring business case for PPP in modernizing the infrastructure of Indian Railways – Push from the Central and State governments is the biggest driver.

Tracking some Underlying Opportunities Across Railways In view of the difficulties faced by the ENINRAC REPORTS REPORTS ENINRAC MARKET RESEARCH RESEARCH MARKET Development and MRTS in Lucknow, Uttar Pradesh private entities in acquiring land in India, IR has decided to provide land to the ~9272 private entity to build a maintenance INR Crores depot Investment Opportunity in the Recognizing the financing and operational imperatives for the rail & MRTS segment in ambitious and timely plans of Indian Railways, GoI has taken several Lucknow initiatives to ease the flow of capital and encourage private 14% participation- 16% ▪ Recognising how challenging it would be for a private entity to arrange 10% an experienced, capable crew to operated private trains, Indian Railways 14% 9 will offer its experienced pool of crews to operate the trains. Further to Upcoming rail & MRTS instil the investor confidence, it has been decided that no new, similar projects in Lucknow as of scheduled train will depart from the originating station on the same 86% 2020 destination route within 60 minutes of the scheduled departure of the 60% private train, until quarterly capacity utilisation of the private train Number of projects in exceeds 80 per cent MRTS Railways Railways and MRTS segment in Lucknow ▪ Furthermore, in view of the difficulties faced by private entities in Breakup of Opportunity acquiring land in India, Indian Railways has decided to provide land to the private entity to build a maintenance depot. Indian Railways will also Metro Rail Commercial Development on 1 provide its own Passenger Reservation System (PRS) to make these Railway Land 2 Railway Bridges private trains available for ticket booking to its large pool of customers. Rail Tracks Railway Tracks To encourage efficiency in energy consumption, the charges for traction energy will be collected based on actual consumption as assessed from Rail Bridges 3 Station Development 2 the energy meter of the train. The project has been structured to Station Development Commercial motivate the private sector to bring efficiency and innovation in Development 1 passenger train operations Source: eninrac City Profile & Channel Checks What environment is transpiring business case for PPP in modernizing the infrastructure of Indian Railways – Push from the Central and State governments is the biggest driver.

▪ It has allowed 100 percent FDI in the railways under the automatic route for the construction, operation and maintenance of suburban corridor projects, high-speed train

projects, railway electrification and signalling, among others

ENINRAC REPORTS REPORTS ENINRAC MARKET RESEARCH RESEARCH MARKET ▪ Government has proposed to encourage PPP across the railways value chain that include faster development and completion of tracks, railway stations development, rolling-stock manufacturing and delivery of passenger freight services. Backed by technology and innovation IR has involved private players for providing better customer experience. These include- free Wi-Fi railway stations, ticket booking on mobiles, bar-coded tickets, a complaints app, faster trains, modern refurbished coaches that include mobile charging points and high-tech toilets, and many other facilities, all to attract passengers and improve service. For internal operations, the Railways is working on a centralized and paperless asset purchase and approval system based on online bidding.

▪ The Railways has signed an MoU with the Life Insurance Corporation of India for financial assistance of INR 1.5 lakh crore over five years

▪ The DFC project is one of the Indian Railways’ largest infrastructure projects, undertaken by the government at a cost is INR 81,459 crore. DFCCIL has recently announced that IR will be running its freight trains on 40% of the dedicated freight corridor (DFC) by 2021. The eastern & western freight corridor is 1504 kms long in the western side and stretches from JN port Mumbai, Maharashtra to Dadri in the state of Uttar Pradesh. Further, the eastern corridor is 1856 kms long stretching from Sahnewal near Ludhiana in Punjab to Dankuni in the state of West Bengal. Further, it will also connect ports in Gujarat with Khurja, Kanpur, Rewari, Dadri, Ajmer, Palanpur by the end of 2021. The full-fledged functioning of the DFC shall take place by 2022. According to the IR, once the Dadri to Rewari section of the DFC is completed, the ‘Roll-on Roll-off (Ro-Ro)’ services of the national transporter can begin, leading to a significant reduction in pollution in the Delhi-NCR region. In order to avoid congestion on roads, loaded trucks can be moved on flat rakes under the service. The aim of the ‘Ro-Ro’ service is to reduce carbon emission and congestion on roads of the NCR as nearly 66,000 trucks pass through the national capital and its adjoining areas in a day. Indian Railways has three more corridors- East Coast Corridor, East-West Corridor and North-South Sub-Corridor, in the pipeline and the surveys for these corridors will be completed by the year 2021. These corridors are slated to be completed by the year 2030. The 1,115 km long East Coast Corridor will be from West Bengal’s Kharagpur to Vijayawada in the state of Andhra Pradesh. The 975 km long North-South Sub-Corridor will link Vijayawada--Itarsi, while the East-West corridor comprises will consist of 1,673 km long route linking Bhusawal-Nagpur- Kharagpur-Dankuni as well as 195 km long route connecting Rajkharswan-Kalipahari-Andal.

Newly Proposed Proposed Corridors Source -Destination Length Dedicated (kms) Freight East Coast Corridor Kharagpur to Vijaywada 1115 Corridors in East West Sub Corridor Bhusawal-Nagpur-Kharagpur- 1673 3958 kms Dankuni India Opportunity for Rajkharswan-Kalipahari-Andal 195 developing DFCs by 2030 North South Sub Corridor Source: Ministry of Railways, eninrac research Vijayawad to Itarasi 975 Examining PPP Opportunities in Indian Railways – Tracking New Avenues of Investment Opportunity for Railways Brief on Contents & Coverage – Infrastructure Development, Examining PPP Opportunities in Electrification & Locomotives Till 2025 Indian Railways

02 Opportunity Analysis for Private ENINRAC ENINRAC MARKET

RESEARCH RESEARCH REPORT 03 Opportunity Analysis for Private Players in Railway Infrastructure 01 Understanding the Railway Players Development of Electrical infrastructure sector in India Development in Locomotive Infrastructure at Railway Stations Manufacturing & running Private Trains

Getting a knowhow of key Mechanical, Detailed Coverage of business opportunity in Detailed Coverage of business opportunity in Civil and Electrical components for Railway Locomotive Manufacturing, Passenger development of Automated People Mover, Infrastructure Development. It also gives Coaches Manufacturing, Goods Train Lighting infrastructure, Cooling & Heating wide coverage about Policy and Wagons Manufacturing and High-Speed Infrastructure, Digital Interface, Swipe Ticket Regulation integration in railway Trains Manufacturing Entry Machine, Rooftop Solar Installations and Network Line Construction infrastructure development 05 Opportunity Analysis for Private 04 Opportunity for Private Players in Players in New Railway Stations 06 Trend of Railway Electrification and Network Construction for Development & Redevelopment of Plan for 100% Electrification by 2024 Railway Infrastructure Development Old Stations

Detailed Coverage of business opportunity in Detailed Coverage of State & City Wise business Detailed Analysis of Regional Split of Electrified development of Automatic Train Control Systems, opportunity for New Railway Stations Development Capacity Network, Year Wise Growth in Railway Track Electrification, Signaling and Redevelopment of Old Railway Stations with Electrified Network Capacity, Region wise Components, Level Crossing Protection Systems, regards to Development of Solid Waste Treatment Opportunity in Upcoming Railway Electrification Operations Control Plants, New Buildings & Commercials Complex, Projects & Tender Details and Analysis of Rise in Systems & Rail-IT and Electronic Interlocking Railway Yards, Storage Facilities and Foot – Over Electricity Consumption Bridges

07 Railway Electrification Opportunity 08 Railway Electrification 09 Railway Electrification Analysis for Power Project Developers Opportunity Analysis for Power Opportunity Analysis for Power Transmission Utilities Distribution Utilities Quantification of Region Wise and State Wise Opportunity assessment for Thermal Project Quantification of Region Wise and State Opportunities for Discoms due to Rise in Power Developers, Renewable Project Developers and Wise Opportunities for CTU and STU’s in Demand and also for Feeding & Collection in Railways Railways Captive Generation – Conventional & terms of New Network Development and N/W - Estimating Supply Capability Non-Conventional Generation Construction of New Sub-Stations Examining PPP Opportunities in Indian Railways – Tracking New Avenues of Investment Opportunity for Railways Brief on Contents & Coverage – Infrastructure Development, Examining PPP Opportunities in Electrification & Locomotives Till 2025

Indian Railways

ENINRAC ENINRAC MARKET RESEARCH RESEARCH REPORT 11 Tracking Opportunity for Private 12 Opportunity examination for 10 Opportunities for Private Players in Developing Dedicated Freight private players in commercializing Players in Indian Railway Corridors in India railway lands

Detailed Coverage of business opportunity for Region Wise and State Wise track of Region Wise and State Wise track of Private players in terms of PPP Projects for investment opportunity for private players investment opportunity for private players in development of Railway Infrastructure, Running with announcement of new dedicated utilizing the commercial lands of Indian of Private Trains on Dedicated Routes and freight corridors in India by 2030 and railways Redevelopment of Railway Stations enhancement of industrial zones

14 Key Findings / 13 Track of Upcoming Railway Recommendations and Infrastructure Projects Conclusion

The final section of dossier comprises of Key Region Wise and State Wise Deck of Regions Having the Highest Opportunity for Upcoming Railway Infrastructure projects is Railway Infrastructure aided by viewpoints of our available Giving Proper Idea About the Key knowledge grid experts. Our key finding and Opportunity Segments to Market Players recommendations shall also be done under this section Examining PPP Opportunities in Indian Railways – Tracking New Avenues of Investment Opportunity for Railways Infrastructure Development, Key Highlights for Market Research on Examining PPP Electrification & Locomotives Till 2025

Opportunities across Indian Railways ENINRAC ENINRAC MARKET RESEARCH RESEARCH REPORT 1. Key Mechanical components for railway infrastructure in India- Locomotives, Passenger Coaches, High Speed Trains & Goods Train Wagons 2. Key Electrical components for railway infrastructure in India- Station Infrastructure, Rooftop Solar & Network 3. Key Civil components for railway infrastructure in India- Station Infrastructure, Track Development, Construction of Bridges, etc. 4. Tracker of upcoming Railway infrastructure projects till 2025 5. Key opportunities Turnkey solution providers 6. Business opportunities for value chain players for railway infrastructure development. 7. Key opportunities for railway electrification in India. 8. Business opportunities for creating lighting infrastructure, cooling/heating infrastructure development, digital infrastructure development.

Differentiating Insights for Market Research on Examining PPP Opportunities across Indian Railways

1. Examining upcoming opportunity for manufacturing of locomotives. 2. Upcoming opportunity in passenger coaches manufacturing in India for high speed trains, semi speed trains etc. 3. Upcoming opportunity for train wagons manufacturing. 4. Examining Upcoming opportunity for electrical equipments, used in development of railway infrastructure. 5. Key opportunities for EPC players for installation of solar rooftop PV plants on railway station buildings. 6. Key opportunities for network construction for railway infrastructure development. 7. Analysis of opportunities in terms of construction of new lines, broad gauge line, electrification of lines. 8. Upcoming opportunities for creating civil infrastructure such as new buildings, yards, bridges, tunnels etc. 9. Track of upcoming railway infrastructure projects. Privatization of Indian Railways – Tracking New Avenues of Investment Opportunity for Railways Infrastructure Development, Must Electrification & Locomotives Till 2025

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ENINRAC ENINRAC MARKET RESEARCH RESEARCH REPORT ▪ EPC Players Companies ▪ Logistics Service Providers ▪ Building Construction Material Providers Mentioned ▪ Railway Electrification Value Chain Players ▪ Consultants ▪ Electric equipment Manufacturers ▪ Indian Railway Stations Development Corporation ▪ Solar Power Developers Limited ▪ Raw Material Suppliers ▪ L&T ▪ Government Bodies ▪ Tata Projects ▪ Rolling stock manufacturers ▪ NBCC ▪ Funding Bodies/Banks ▪ Limited ▪ GMR ▪ Adani Group For ▪ JKB Infra Queries ▪ Shapoorji Pallonji ▪ Tata Realty ▪ Research : Write to: [email protected] and NIIF alternatively you may reach our consultant at ▪ ISquared Capital [email protected] ▪ Global Infrastructure Fund ▪ Essel Group Sales: To learn about the procurement and ▪ Anchorage Capital subscription of the report connect to our team ▪ member Abhay Pathania The National High Speed Rail Corporation Limited email – [email protected] ▪ Kalpataru Power Transmission ▪ Sterlite Power Please call at +91 9882092502 for any other ▪ KEC International Ltd. queries ▪ RITES Ltd. Truth is ever to be found in the simplicity, and not in the multiplicity and confusion of things - Sir Isaac Newton

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