REGULATORY · MARKET STRUCTURE · COMPETITIVE · INDIA
India approves first underwater road-rail tunnel project
Economic Times
16 Feb · 11:45 PM
Change
India’s Union Cabinet approved construction of the country’s first underwater road-cum-rail tunnel with an outlay of ₹18,662 crore.
Why it matters
Cabinet approval locks in a ₹18,662 crore infrastructure spend, moving the tunnel from concept to an authorized build with downstream tendering, land/clearance sequencing, and contractor mobilization. Because the asset combines road and rail in an underwater environment, design, safety, and operations requirements are more interdependent than single-mode projects, tightening interface management across agencies and vendors. The project’s execution will create a defined pipeline for specialized civil works, tunneling systems, and rail/road integration packages, with schedule and cost sensitivity to marine geotechnical conditions and safety compliance. The Ministry of Information and Broadcasting’s AI-generated visualization signals active government communication around the project, increasing public visibility and scrutiny of milestones and delivery performance.
Implications
- • Large public-capex pipeline opens for tunneling and systems contractors
- • Higher interface risk across road, rail, and underwater safety standards
- • Procurement and contracting activity accelerates after Cabinet approval
- • Greater schedule/cost sensitivity to marine geotechnical conditions
Who is affected
- • Rail and road infrastructure EPC contractors and consortium bidders
- • Tunneling equipment, signaling, and ventilation/fire-safety system suppliers
- • Project finance lenders and infrastructure insurers
- • Central and state transport implementing agencies and regulators
Source
Read full article on Economic Times →
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