New Delhi Railway Station Revamp: RLDA Awards Contract to HG Infra JV

The Rail Land Development Authority (RLDA) has selected HG Infra Engineering and DEC Infrastructure Private Limited as the lowest bidder (L1) for the redevelopment of the New Delhi Railway Station.

The contract has been awarded at ₹2,195.68 crore, lower than RLDA’s estimated cost of ₹2,469 crore. The project is expected to be completed within 45 months.

Project Details and Financial Aspects

HG Infra Engineering and DEC Infrastructure Private Limited have formed a joint venture to execute the project, with HG Infra holding a 49% stake and DEC Infrastructure holding a 51% share. 

The redevelopment will follow the Engineering, Procurement, and Construction (EPC) mode. The project aims to enhance passenger experience by modernising the infrastructure while maintaining operational efficiency at one of India’s busiest railway stations.

The redevelopment project has faced several hurdles in the past, with earlier bids being significantly higher than the RLDA’s estimated budget. Despite multiple attempts since 2002-03, the project faced financial and administrative roadblocks. 

In 2021, the Public-Private Partnership (PPP) model was considered but could not proceed due to high quoted costs.

Challenges and Historical Context

One of the major challenges for this redevelopment is the congestion in the Ajmeri Gate and Paharganj areas, which surround the station. These heavily populated regions pose logistical difficulties for large-scale infrastructure projects. 

Railway officials have previously acknowledged that managing traffic and minimising disruptions will be crucial to the success of the project.

The New Delhi Railway Station redevelopment was first proposed in 2002-03 but failed to secure adequate funding. The idea resurfaced in 2008-09 but encountered planning issues. The latest plan gained traction in 2022 when the Railway Ministry released a proposed design, showcasing improved passenger amenities and upgraded facilities.

HG Infra Share Performance

As of February 07, 2025, at 2:25 PM, the shares of HG Infra are trading at ₹1,261.25 per share down by 0.89% from its previous day’s closing price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing