top of page
Search
  • Writer's pictureYOG INFRA

Infrastructure & PPPs in India - Q1 2023 Update - Transport and Urban Infra

YOG INFRA Q1 2023 insights

INDIA's transport and urban infra sector is driven by multiple PPP projects, some of them being done for the first time in the country and in Asia - including logistics (multimodal parks, economic corridors), sports stadiums, ropeways and railway stations. Road sector remains active with projects being planned & awarded to support Bharatmala and Gatishakti mission of the government. Further, there is an active secondary market for operational PPP projects, wherein international investors have shown keen interest.

Read more in our latest insight for the country.

This is second publication on a 2-part insight series on India

 

January 2023

INDIA AUTHORITY SEEKS BIDS FOR TWO GREENFIELD HIGHWAYS

The National Highways Authority of India (NHAI) is seeking developers for two greenfield projects totaling 70 km. One of these is the 47 km, four-lane Atal Progressway, connecting Maithana and Kuretha villages in Morena district in Madhya Pradesh state. This will cost an estimated INR 8.9 Bn (USD 109 Mn).

The second project is the 22.5 km, six-lane Ambala Ring Road in Haryana, which will cost an estimated INR 6.2 Bn. Both projects will be governed by hybrid annuity contracts. The central roads authority, which has a target of awarding about 6,000 km in the 12 months. The NHAI will hand out the most number of contracts in Q1, 2023 and the company is targeting about INR 80 Bn to INR 100 Bn of new orders.


INDIA ROADS AUTHORITY SEEKS DEVELOPERS FOR ECONOMIC CORRIDOR PROJECTS

The National Highways Authority of India (NHAI) is seeking developers to build 4 new road sections totaling 68 km. All of these are in Andhra Pradesh state and are part of the longer 342 km Bengaluru-Vijayawada economic corridor, which will cost an estimated INR 136 Bn (USD 1.6 Bn). One of these is 16 km and will connect Audireddipalle and Mallapalle. The NHAI projects' cost is expected to be about INR 7.3 Bn.

The second stretch of 7.5 km between Kavulakuntla and Narayanmpet will cost an estimated INR 10.3 Bn, while a third 20 km section between Mallapalle and Kavulakuntla will require about INR 6.5 Bn. The fourth stretch of 24.5 km between Chandrasekharpuram and Narayanmpet will cost an estimated INR 5.8 Bn. The contracts will be handed out in the hybrid annuity model.


INDIAN AUTHORITY SEEKS BIDS FOR ROPEWAY PROJECTS

An Indian central authority is seeking bids to build two ropeways, which will cost an estimated INR 3 Bn (USD 36 Mn). One of the projects, in Jammu & Kashmir, will be 2.1 km and require an investment of INR 1.7 Bn, while the second, in Madhya Pradesh state, will be 1.8 km and require INR 1.3 Bn.

Both contracts will be awarded in the hybrid annuity model. The central authority, which is evaluating more than 200 proposals for ropeways from state governments across India, will adopt a mix of technologies.


INDIAN STATE TO SEEK INTEREST FOR ROLLING STOCK PPP

A railway authority in India’s Karnataka state will publish a request for qualification (RFQ) document to procure rolling stock for a suburban rail line in Bengaluru city. Potential bidders will get two months to submit their applications.

The authority plans to procure 306 cars, or 51 trains of six cars each for a concession period of 35 years, including their maintenance and upgrade. It estimates that the rolling stock will cost about INR 40 Bn (USD 491 Mn). The winning bidder for the rolling stock PPP will be required to design, procure, test, commission, finance, lease and maintain the coaches along with relevant depots.


INDIA INVITES APPLICATIONS FOR USD 5 BN NICOBAR PORT

The Indian government invited expressions of interest for a proposed transshipment port at the Great Nicobar Island in the Bay of Bengal. The INR 410 Bn (USD 5 Bn) project will be developed in four phases through a public-private partnership (PPP), with a concession of 30-35 years. It will have an annual capacity of 16 Mn TEUs. The commissioning of the first phase is scheduled for 2028. Other projects planned around the proposed port include an airport, a township, and a power plant.

Salient features of the Project

  • Strategic Location – Located on the International Trade Route, with existing transshipment terminals like Singapore, Klang and Colombo in proximity.

  • Draft – Natural depth of 20 m

  • Catchment – Potential to capture transshipment cargo from the similar international facilities in the sub-continent and Ports in the proximity including Indian Ports.

  • Project features for Phase 1 – Two breakwaters, 400 m wide navigational channel, 800 m dia turning circle, total berth length of about 2.3 km translating to 7 berths, 125 Ha for container yard, container handling equipment including RMQCs and RTGs, provision to develop 2 liquid cargo berths.


February 2023

INDIAN STATE CRICKET BODY TO FINALISE STADIUM PPP MODEL

A cricket association in India's Rajasthan state is in the midst of deciding on the implementation model for a new cricket stadium. The association had estimated the project to cost about INR 2 Bn (USD 24.14 Mn) and was offering it in the design, build, finance, operate and transfer model. A second stadium located at Chonp Jaipur - which the authority intends to offer to investors as a concession - is in the advanced stages of development, being constructed in the engineering, procurement, and construction method.

The total project cost is nearly INR 6 Bn. The first phase of development is estimated at around INR 4 Bn and it will have a capacity to accommodate 40,000 spectators initially. It will later be expanded to 75,000 seats and will be the third-largest cricket stadium in the world.


RAILWAY SEEKS PRIVATE FUNDING TO REVAMP 15 STATIONS

Indian Railways is considering a new public-private partnership (PPP) model to attract private investment to redevelop railway stations. Under this model, investors would receive up to 40% of the total project cost as viability-gap funding (VGF) and would be permitted to commercially use the space above platforms and tracks.

Rail Land Development Authority (RLDA), an Indian Railways unit, plans to run pilots at 15 stations, including Vijayawada and Anand Vihar. Based on the experience, the model will be finetuned and implemented across other major stations.

Bids will be chosen under the hybrid PPP model based on the amount of VGF support required by the private investor. The private developer will be permitted to develop air space (vertical space above platforms) in order to generate additional revenue through commercial activities such as leasing office space, developing entertainment and recreational facilities, hospitality services, malls, and even healthcare facilities.

GOVERNMENT TO DEPLOY PPP AND VIABILITY GAP FUNDING TO PROMOTE COASTAL SHIPPING

The government will tap vast swathes of its underutilized coast on the eastern and western seaboard to promote an energy efficient and low-cost mode of transport for freight and passengers through public-private-partnership (PPP) and viability gap funding. Coastal and inland waterway transportation are considered energy efficient, eco-friendly and helps reduce logistics costs for domestic freight.


March 2023

INDIAN CIVIC BODY PLANS MULTI-LEVEL PARKING PPPS

A municipal corporation in India’s Maharashtra state is planning 6 multi-level parking projects, a top official from the civic body. The first parking lot will be in the Raviwar Karanja locality, work is ongoing to identify the remaining five locations. The contracts will all be in the public-private partnership model, but did not reveal cost estimates.

The projects are part of the Nashik Smart City program. The Smart Cities Mission is a central government initiative, largely aimed at retrofitting existing cities with core infrastructure, and a clean and sustainable environment through the use of smart solutions. The central government chose 100 cities for the program after holding a Smart City Challenge in which municipal bodies across India were required to present proposals for the development of their respective cities. Nashik was ranked 11 in the second round of the challenge.


INDIAN STATE PLANS PPPS IN NEW SPORTS POLICY

India’s Uttar Pradesh state has approved a new policy for sports. The policy aims to build related infrastructure through public-private partnerships. The associations and academies will expand their infrastructure and training facilities with the government's financial support, which will further lend itself to producing top athletes. The state will set up 14 centers of excellence, each centered around a particular sport. These are proposed to be set up on PPP model.

ZURICH AIRPORT TO CONSIDER ADDITIONAL INVESTMENTS IN INDIA PROJECT

Zurich Airport International will consider additional investments in its greenfield Noida project in India’s Uttar Pradesh state. These could be in commercial real estate, or city side development surrounding the upcoming aerodrome. Yamuna International Airport tied up financing, signing an agreement for INR 37.25 Bn (USD 452 Mn) with the State Bank of India. The project has a debt-to-equity ratio of 65:35. The loan is only for the construction of the airport and not for any surrounding commercial development.

The airport company does not have any plan to consider taking on an equity partner in the project. Zurich International signed the shareholders’ agreement to develop and operate the airport with a fee of INR 400.97 per passenger. The new facility will be operational at the end of 2024 with one terminal having the capacity to handle 12 Mn passengers annually. The asset carries a 40-year concession and will be designed to handle 70 Mn passengers yearly at the end of the fourth phase by 2050.


INDIAN MINISTRY PROPOSES CHANGES TO METRO RAIL LAW

India’s urban affairs and housing ministry has proposed a revision to the metro railways law, which would thwart attachment of any funds or property of concerned authorities in the event of a dispute. A draft of a note regarding the revision and background was sent to other ministries for feedback. The need to revise the law came up after the High Court in Delhi recently asked the central government to decide whether assets owned by the Delhi Metro Rail Corporation could be attached to pay a pending arbitral award in favor of Reliance Infrastructure-owned Delhi Airport Metro Express (DAMEPL).

 

List of key transactions - Transport and Urban Infra - India Q1 2023

Bids Invited


Bids Awarded

Source: YOG INFRA analysis

 

ABOUT YOG INFRA

Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.

​YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.

With our offices in Singapore, India and UAE we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.


For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com


©2023 YOG INFRA. All rights reserved.

190 views0 comments

Comments


Post: Blog2_Post
bottom of page