India Infrastructure Research has tracked 79 awarded projects in which construction work is yet begin. The total value of these projects is estimated at over Rs 3 trillion.
For the road, urban rail and water sectors, projects awarded between January 2014 and December 2015 have been included in the analysis. However, in the power and port sectors, construction is yet to start in some big-ticket projects awarded between 2006 and 2013. Therefore these have also been included.
Based on the 79 projects under consideration, the power sector will witness the highest investment of Rs 1.5 trillion, followed by the port sector (Rs 463 billion), the water supply and sewage sector (Rs 401 billion), the road sector (Rs 369 billion) and the urban rail sector (Rs 332 billion).
Details on the stake structure are available only for 76 projects. Of these, 27 projects entailing an investment of Rs 1 trillion are being developed by a government agency (central/ state/local), while 49 projects (Rs 1.9 trillion) are being developed on a public-private partnership (PPP) basis.
The top five projects awarded between January 2014 and January 2016 account for about 30 per cent (Rs 935 billion) of the total investment committed. Of these, the biggest infrastructure project is the Telangana Water Grid Project. This project alone entails an investment of over Rs 345 billion. The scope of the project involves laying of over 125,000 km of pipelines across the state. This includes about 5,227 km of main trunk pipelines of 600 mm diameter and 45,809 km of secondary pipelines of 500 mm diameter.
Barring the water supply and metro rail sectors, the PPP model has been the dominant mode of project implementation. Of late, a number of national highway projects are being awarded on an engineering, procurement and construction basis. In the past year, 11 national highway projects entailing an investment of Rs 109 billion were awarded in this mode.
The biggest project being implemented on a PPP basis is the Rs 200 billion Kamala Hydroelectric Project (1,800 MW). This project was awarded to Jindal Power Limited (JPL) on a build-own-operate-transfer (BOOT) basis by the Arunachal Pradesh government. It entails the installation of eight turbines of 216 MW each and two units of 36 MW each. The project is yet to receive statutory clearances from the Central Electricity Regulatory Commission and the Ministry of Environment, Forest and Climate Change.
Another major PPP project is the Rs 100 billion Zojila Tunnel Project. The project was awarded to IRB Infrastructure Developers Limited in January 2016. It entails the construction of a 14 km long all-weather tunnel and is likely to be commissioned by 2023.
A third major PPP project is the Mumbai Metro Line 3. This metro line is planned to run for a stretch of 33.5 km and the project will be implemented at an estimated cost of Rs 290 billion. It is expected to be commissioned by 2020.
In the port sector, the major projects awarded between 2006 and 2013 include the Kirtania port, Astaranga port and Machilipatnam port projects. These port projects entail a combined investment of Rs 114 billion. Unfortunately, they have been facing delays owing to issues related to environmental clearances and land acquisition. In the power sector too, there are about 22 hydropower projects worth Rs 1.3 billion that were awarded to private sector developers by various state governments but construction work has not yet begun, primarily due to delays in the grant of environmental and technical clearances and local opposition.