Seoul, 2 February 2016 – The Korea Rail Network Authority and construction firms from Spain, Italy and India signed a contract with India’s Lucknow Metro Rail Corporation last month, according to the press office of Korea Railway Association.
They will be overseeing the construction of a new track in the city of Lucknow in Uttar Pradesh, India.
An international consortium comprising of the Korea Rail Network Authority and construction firms from Spain, Italy and India signed a USD 42 billion contract with India’s Lucknow Metro Rail Corporation on 15 January 2016.
The contract outlines the administration and supervision of a railway construction project in the city of Lucknow.
The members of the consortium are the Korea Rail Network Authority, Spanish firm Ayesa, Italian firm Geodata and Indian firm Aarvee. Through the contract, Korea has landed a deal worth some USD 10 billion.
The consortium will manage railway construction in Lucknow, Uttar Pradesh, a state in northern India. Once finished, the new track will connect the 22.9 kilometers between the Chaudhary Charan Singh International Airport and Munshi Pulia, a proposed Lucknow Metro station.
For Korea, the contract provides an opportunity to pass on the country’s technical expertise in railway construction, while also generating profits for the industry.
Following this contract, the Indian government has approached the Korea Rail Network Authority, Lotte Asset Development and the Korea Railroad Corporation to discuss the construction of several new railway stations in New Delhi, the capital. Should the companies sign a new deal with the Indian government, they will be involved in the construction or reconstruction of more than 400 railway projects across the region.
The Ministry of Land, Infrastructure and Transport stated that it “hopes these construction projects will boost bilateral ties between our two countries,” a key point that was outlined during the Korea-India summit in May last year.