India’s outlay for railway electrification has been increased by 50 Percent with target of 2000 Km in FY 2016-17
India: On 25 February 2016,
Railway Minister Suresh Prabhu presented his 2nd Railway Budget in
Parliament. Railway Minister has set a target to electrify 2,000 RKM in FY
2016-17. Budget allocation for electrification has also increased by 50 per
cent of FY2015-16. Three new freight corridor are also announced which will
come in North-South connecting Delhi to Chennai, East-West connecting Kharagpur
to Mumbai and East Coast connecting Kharagpur to Vijayawada. Suresh Prabhu also
proposed a capital expenditure of INR 1,200 billion for FY 2016-17, a 20 per
cent increase over last years. This capex plan will be achieved through joint
venture with states and through enhanced market borrowing through rupee
denominated bonds.
TechSci Research depicts that with the Government’s target to electrify
additional 2,000 RKM, and creation of 3 more freight corridor will give major
impetus to the power and distribution transformer companies like ABB, Siemens,
BHEL. To meet the target, TechSci Research has projected that Power and
Distribution Transformers companies will need to ramp up their manufacturing
capacity.
According to released report of TechSci Research “India Power and Distribution Transformers Market Forecast & Opportunities, 2020”, the power and distribution transformers
market in India is projected to grow at a CAGR of over 10% till 2020. These
investments in electrification of
railways will give large boost to the market of power and distribution
transformers.