BEML, RVNL, IRFC rise after Cabinet approves Bengaluru, Thane and Pune metro projects worth over ₹30,000 crore

Railway stocks were in focus on Monday after the Cabinet approved metro projects in Bangalore, Thane and Pune worth over ₹30,000 crore on Friday.

The Union Cabinet, chaired by PM Narendra Modi, approved Phase 3 of the Bangalore Metro Rail Project with two elevated corridors for a length of 44.65 Km with 31 stations. Corridor-1 extends from JP Nagar's 4th phase to Kempapura for a length of 32.15 km with 22 stations. Corridor-2 extends from Hosahalli to Kadabagere for a length of 12.50 km with nine stations. The total project completion cost of Phase-3 stands at ₹15,611 crore to be operational by 2029.

The Cabinet also approved the Thane Integral Ring Metro Rail Project corridor in Maharashtra. According to a release, the 29-km corridor will run along the periphery of the west side of Thane city and will have 22 stations. The network is encompassed by Ulhas River on one side and Sanjay Gandhi National Park on the other.

The estimated cost of the project stands at ₹12,200.10 crore, with equal equity from the government of India and the government of Maharashtra, as well as part-funding from bilateral agencies.

A release said the required funds would also be raised through various financing methods, such as selling station naming and access rights for corporations, monetising assets, and using value-capture financing.

Meanwhile, the Cabinet also approved the Swargate to Katraj underground line extension of the existing PCMC-Swargate metro line of the Pune Metro Phase-I project. The project is set to be completed by February 2029 at an estimated cost of ₹2,954.53 crore, with funding to be equally shared by the governments of India and Maharashtra, along with contributions from bilateral agencies.

Rail stocks have had a great year so far. RVNL shares have gained over 218% this year, while IRFC rose over 80% during the period. Other stocks like Titagarh Rail Systems (40%) and BEML (39%) also registered significant gains.