Investors and market enthusiasts are setting their sights on railway public sector undertaking (PSU) stocks, such as Indian Railway Finance Corporation (IRFC), RailTel Corporation of India, and Rail Vikas Nigam Ltd (RVNL), after a significant announcement from the union cabinet. On Friday, the cabinet greenlit four major multitracking projects, amounting to an impressive ₹18,658 crore, aimed at enhancing the railway infrastructure across Maharashtra, Odisha, and Chhattisgarh. These projects will collectively extend the railway network by approximately 1,247 kilometers, promising a transformative impact on logistics and regional development.

Major Railway Projects Approved

Among the highlighted initiatives, the cabinet has approved a substantial investment of ₹8,741 crore to construct a new 615 km railway line in Chhattisgarh. This new route is expected to cut logistical costs by ₹2,520 crore when compared to traditional road transport options.

• Kharsia–Naya Raipur–Parmalkasa Line: This line will facilitate direct access to key areas such as Baloda Bazar, stimulating the establishment of industrial hubs, including cement manufacturing facilities.

Investments in Maharashtra and Odisha

In addition to the Chhattisgarh project, the government has allocated ₹4,819 crore for the expansion of the Gondia-Balharshah railway line in Maharashtra. Meanwhile, Odisha will benefit from a 277 km project valued at ₹3,917 crore, aimed at adding the third and fourth railway lines between Sambalpur and Jarapada. Another project will see the addition of more lines between Jharsuguda and Sason.

Job Creation and Economic Impact

The ripple effects of these projects are expected to be significant. They are projected to generate approximately 379 lakh human-days of direct employment during the construction phase. The infrastructure enhancements will also lead to the development of 19 new stations, improving connectivity for nearly 3,350 villages and benefiting around 47.25 lakh individuals.

• Freight Capacity Expansion: The upgrades will allow for an additional 88.77 Million Tonnes Per Annum (MTPA) of freight movement, which is poised to decrease logistics costs and cut down oil imports by an estimated 95 crore litres.

Railway Stocks Performance

As these developments unfold, the performance of railway stocks has been under scrutiny:

• IRFC: The share price of IRFC saw a decline of 2.69%, closing at ₹125.69.
• RVNL: Shares of Rail Vikas Nigam dropped 2.39%, finishing the day at ₹351.15.
• RailTel: RailTel Corporation experienced a 4.41% decrease, closing at ₹298.
• Container Corporation of India: The stock fell by 3.43%, ending the day at ₹690.

These infrastructure initiatives not only represent a strategic move to bolster the railway network but also highlight the government’s commitment to enhancing regional connectivity and promoting economic growth. As railway stocks remain in focus, investors are keenly watching how these developments will influence market dynamics in the coming weeks.