Infrastructure & PPPs in India - Q2 2026 Update - Transport and Urban Infra

YOG INFRA
Jul 31
12 min read

INDIA is accelerating infrastructure development through Public-Private Partnerships (PPPs), policy reforms, and strategic private investment across transport, airports, healthcare, industrial infrastructure, urban development, education, and logistics. Major initiatives include the redevelopment of 49 UPSRTC bus stations, Nagpur International Airport, PM MITRA textile parks expected to attract USD 2.12 Bn in investment, and multiple PPP projects in Odisha and Jharkhand, alongside new urban PPP guidelines in Andhra Pradesh and expanded participation of institutional investors in highway PPPs. Private capital is also supporting infrastructure through investments in electric mobility, digital education, road HAM projects, and integrated urban development, reinforcing India's efforts to modernise infrastructure, attract long-term private investment, and drive sustainable economic growth.

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

APRIL 2026

UP CABINET APPROVES REVAMP OF 49 BUS STATIONS, INDUSTRIAL PROPOSALS TO DRIVE INVESTMENT

The Uttar Pradesh Cabinet approved the redevelopment of 49 bus stations under the Public-Private Partnership (PPP) model, alongside a series of decisions aimed at boosting industrial investment and employment in the state. Under the transport revamp plan, 49 bus stations of the Uttar Pradesh State Road Transport Corporation (UPSRTC) will be modernized in the second phase on a Design, Build, Finance, Operate, and Transfer (DBFOT) model. The project is expected to attract investments of over INR 4000 Cr (USD 428.73 Mn), with no direct financial burden on the state government.

The government aims to transform these bus stations into "airport-like hubs” equipped with modern passenger amenities such as improved waiting areas, sanitation, VIP lounges, restaurants, shopping malls, cinema halls, and accommodation facilities, adding that around 55% of the area will be reserved for public use, while 45% will be utilized for commercial activities.

The lease period has been fixed at either 35 or 90 years, after which ownership will be back to UPSRTC. With the approval of 49 more bus terminals, a total of 52 districts in the state will now be covered under the project.

MAHARASHTRA’S FIRST PPP-MODEL ZP SCHOOL TO OPEN ON PHULE’S NATIVE VILLAGE

The state's first Zilla Parishad (ZP) school operating under a Public-Private Partnership (PPP) model will be inaugurated in Khanwadi, the birthplace of the legendary social reformer Mahatma Jyotiba Phule. The school is also the first ZP institution in the Pune district to be affiliated with the Central Board of Secondary Education (CBSE).

The project is designed to provide high-quality, free education from Kindergarten to Class XII for children from economically and socially disadvantaged backgrounds. The school aims to bridge the gap for students who have historically faced financial constraints and long commutes to access quality education.

Spanning a 12-acre campus, the project was made possible through a unique collaborative effort. Local villagers donated the land, architects and consultants provided their services pro bono, and the infrastructure was developed through corporate social responsibility (CSR) funding.

While the Zilla Parishad will retain administrative control, an expert regulatory committee has been established to oversee the school's day-to-day operations and maintain academic standards. The school will initially serve 260 students from nearby villages. In addition, there are plans to introduce a residential facility for meritorious students from across the district, beginning with Class VI.

NMC ROPES IN PVT AGENCY TO DEVELOP USD 16.08 MN TRUCK TERMINUS

The Nashik Municipal Corporation (NMC) has roped in a private agency to redevelop and operate the old truck terminus at Adgaon on a Public-Private Partnership (PPP) basis at an estimated cost of INR 150 Cr (USD 16.08 Mn).

Under the PPP model, the private agency will develop the project on a design, build, operate, and maintain (DBOM) basis for a concession period of 30 years. In return, the NMC will receive an annual royalty of INR 90 lakh (USD 96,484.68) from the concessionaire, with a 5% escalation in the royalty every year during the concession period.

The proposed terminus will be spread across nearly 30 acres. The agency will develop parking space for around 300 trucks along with a range of ancillary facilities for truck drivers and transport workers. These will include lodging and boarding facilities, dormitories, bathing facilities, provision stores, and a medical room.

The project will also feature several commercial and support facilities, including storage and warehousing for loading and unloading of goods, aimed at decongesting city roads and entry points. Other proposed facilities include a weighbridge, truck repair workshops, retail outlets, transport offices, showrooms, motels, and hotels. Around 15% of the total land area will be developed as landscaped green space.

WORLD BANK APPROVES USD 225 MN RAJASTHAN HIGHWAY OVERHAUL TO UPGRADE 800 KM ROADS

The World Bank has approved the Rajasthan Highway Modernisation Project, worth over USD 225 Mn, to improve the efficiency, resilience and safety of state highways.

This project will help make the Rajasthan State Highway Authority modern and service-orientated. Around 800 km of selected state highways will be upgraded and maintained, while road safety management systems will also be strengthened. Notably, the project will introduce a step-up loan structure in India for the first time.

The initiative will improve connectivity for youth, enabling better access to employment opportunities, while also boosting industrial competitiveness and tourism in the state. The USD 225 Mn loan from the International Bank for Reconstruction and Development (IBRD) has a maturity period of 35 years, which includes the step-up loan facility and a grace period of five years.

VINGROUP SIGNS PACT WITH MAHARASHTRA GOVT TO EXPLORE USD 6.5 BN INVESTMENT

Vietnam's Vingroup has entered into an agreement with the Maharashtra government to explore investments worth about USD 6.5 Bn across multiple sectors in the state. The company has signed a memorandum of understanding (MOU) with the Maharashtra government, establishing a collaborative framework to explore strategic investments across multiple sectors in the Mumbai Metropolitan Region (MMR) and broader Maharashtra.

The investments amounting to approximately USD 6.5 Bn include integrated urban townships, electric mobility solutions, renewable energy, and social and public infrastructure. The scale and scope of the proposed investments by Vingroup will significantly enhance our urban infrastructure, boost sustainable mobility, and create large-scale employment opportunities, and Maharashtra remains committed to fostering a business-friendly ecosystem and welcomes global partners to participate in our growth story.

The urban development will look into creating integrated urban townships covering about 1,000 hectares, which will include homes, businesses, schools, healthcare facilities, and various amenities. The total estimated investment is around USD 5 Bn, aimed at creating new growth centers in the vicinity of Mumbai, including emerging growth zones such as Mumbai 3.0, which refers to the latest phase of urban development in the Mumbai region. GSM India proposes to deploy a large-scale electric taxi fleet and mobility-as-a-service platform, targeting approximately 60,000 electric vehicles to serve Mumbai and broader Maharashtra.

MAY 2026

CABINET APPROVES NAGPUR AIRPORT MODERNISATION UNDER PPP MODEL

The Union Cabinet approved the upgradation and modernisation of Nagpur International Airport through a long-term licence involving a private partner under the Public-Private Partnership (PPP) model. The approval includes the extension of the lease period of land owned by the Airports Authority of India (AAI) and leased to MIHAN India Limited (MIL) beyond Q3-2039. The move will enable MIL to grant a 30-year concession to GMR Nagpur International Airport Limited (GNIAL) from the Commercial Operation Date (COD).

The decision marks a key development in the expansion of Nagpur Airport under the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN) project. MIL was formed in 2009 as a joint venture between AAI and Maharashtra Airport Development Company (MADC), with an equity structure of 49:51. While airport assets were transferred to MIL in 2009, execution of the lease deed was delayed due to land demarcation issues.

MIL issued a global tender to identify a private operator for the airport under the PPP model. GMR Airports Limited emerged as the highest bidder with an initial quoted revenue share of 5.76%, later revised to 14.49% of gross revenue.

The extension of the lease period will align with the 30-year concession period granted to GNIAL and facilitate the transfer of airport operations to the new joint venture company. GNIAL plans to develop the airport in phases with an ultimate target of handling 30 million passengers annually. The redevelopment is also aimed at strengthening regional connectivity in Vidarbha and enhancing cargo handling infrastructure, positioning Nagpur as a major aviation hub in Central India.

ANDHRA PRADESH UNVEILS INDIA'S FIRST GUIDELINES FOR URBAN PPP PROJECTS

Andhra Pradesh has become the first state in India to release dedicated operational guidelines for urban infrastructure projects under the Public Private Partnership (PPP) model.

The Urban Infrastructure PPP Guidelines, issued through G.O.Rt. No.673, will apply immediately to Urban Local Bodies (ULBs), Urban Development Authorities (UDAs), and other agencies under the Municipal Administration & Urban Development (MA&UD) Department. The reform is part of the Swarna Andhra Vision 2047, which aims to transform the state into a USD 2 Trn economy with a per capita income of USD 42,000.

With over 30% of the population already urbanised and the fiscal gap in infrastructure estimated at INR 45,000 Cr (USD 5.2 Mn), the guidelines are expected to mobilise private investment and ease pressure on civic services such as housing, water supply, sewerage, solid waste management, and mobility.

These first-of-its-kind guidelines will enable ULBs and UDAs to attract private investment, technology, and operational efficiency, creating financially sustainable and liveable cities. The guidelines are a practical tool covering project identification, feasibility, structuring, procurement, monitoring, and dispute resolution.

VENTURE CAPITAL AND PENSION FUNDS CAN NOW PARTICIPATE IN HIGHWAY PPP PROJECTS

The government has allowed venture capital, private equity, infrastructure, and pension funds to bid for highway projects under the Public-Private Partnership (PPP) model, marking a major shift in policy since the sector was opened to private participation in the early 2000s. Until now, only highway developers and construction firms were permitted to participate in such bids.

As part of efforts to attract larger private investments into the road sector, the road transport ministry has revised bidding norms for Build-Operate-Transfer (BOT) toll projects. Alternative Investment Funds (AIFs) and Foreign Investment Funds (FIFs), backed by significant financial resources, are expected to bring stronger project execution capabilities while also ensuring better returns from highway assets. These entities typically have access to long-term capital through pension and infrastructure funds. However, the extent of investor interest and the structure of future deals remain to be seen.

A bidder may be a natural person, private entity, government-owned entity, AIF, FIF, or any combination of them with a formal intent to enter into a joint bidding agreement to form a consortium. Traditional highway developers and construction companies will continue to remain eligible for bidding.

The updated framework also introduces separate evaluation criteria for alternative funds and conventional highway developers. While construction firms will continue to be assessed on both technical expertise and financial strength, AIFs and FIFs will be evaluated solely on financial capacity. For these funds, the financial eligibility threshold has been fixed at twice the prescribed level. The concept of a concessionaire in BOT projects is ideally that of an entity capable of arranging finances, appointing construction firms for execution, and managing highway stretches efficiently.

FOUR HOSPITALS TO BE UPGRADED TO MEDICAL COLLEGES

The Jharkhand govt. has begun groundwork to upgrade four hospitals in the state into medical colleges under the Public-Private-Partnership (PPP) model in an effort to strengthen healthcare infrastructure across the state. The proposed upgradation will cover Sadar hospitals in Khunti, Jamtara, Giridih, and Dhanbad districts, with the aim of expanding access to quality medical education and advanced treatment facilities in underserved regions. With the upgradation, the number of medical colleges in the state will increase to nine from five.

The Jharkhand Medical and Health Infrastructure Development and Procurement Corporation Ltd. (JMHIDPCL) issued tender notices inviting private players to partner in the project as part of the upgradation process. The move follows the state cabinet's approval granted in 2026 for converting these district-level hospitals into full-fledged medical colleges under PPP mode in a bid to boost health services in Jharkhand.

As part of the initiative, the existing 100-bed district hospitals in Giridih, Dhanbad, and Jamtara will be upgraded to medical colleges. The 130-bed Khunti Sadar Hospital will be upgraded to a 220-bed hospital. After upgrading into medical colleges, a total of 350 new seats for medical education will be created in the state: 100 each in Giridih, Dhanbad, and Jamtara and 50 seats in Khunti.

ODISHA APPROVES 5 PPP PROJECTS WORTH USD 119 MN ACROSS HEALTH, URBAN SECTORS

The Empowered Committee on Infrastructure for Public-Private Partnership (PPP) Projects has accorded in-principle approval to five new PPP projects worth a total of INR 1,130 Cr (USD 119 Mn) across key sectors, including health, sewerage treatment, urban development, water supply, and animal vaccine production.

The committee also reviewed the ongoing pipeline of PPP projects and directed the concerned departments and project sponsoring authorities to adhere to strict timelines and ensure due diligence at every stage of project execution.

The PPP projects would play a crucial role in achieving the targets set for attracting private investment under Odisha’s “Vision 2036” roadmap and in ensuring sustainable development in the state. The committee further granted in-principle approval for collaboration between the PPP Cell of the Finance Department and the International Finance Corporation (IFC) to help build a pipeline of viable projects and strengthen a PPP-friendly ecosystem in Odisha.

JIO-BP PARTNERS UPSRTC TO POWER E-BUS FLEET ACROSS UTTAR PRADESH AND DELHI

Jio-bp, the retail energy brand under Reliance BP Mobility and a joint venture between Reliance Industries and bp, has entered into a strategic mobility partnership with the Uttar Pradesh State Road Transport Corporation (UPSRTC) to develop dedicated electric vehicle (EV) charging infrastructure for a fleet of more than 100 public transit electric buses.

The infrastructure and fleet-charging services will be deployed through Jio-bp pulse, the joint venture's specialised electric mobility division. The rollout will be structured across six key transportation clusters intersecting intercity transit corridors between Uttar Pradesh and Delhi.

The project is scheduled to begin installation phases over the coming months to establish high-capacity, industrial-grade DC fast-charging bays at designated state transport depots and hubs.

The interstate bus fleet initiative expands Jio-bp pulse's growing business-to-business (B2B) institutional charging portfolio. At present, the company operates an active national footprint of more than 6,000 EV charging points distributed across 75 Indian cities, servicing commercial logistics providers, corporate car pools, public mass transit systems and passenger vehicle segments.

JUNE 2026

INDIA'S VISHWA SAMUDRA SECURES CREDIT FACILITY FROM KOTAK ALTERNATIVE FUND

Kotak Alts has extended a secured structured credit facility of INR 360 Cr (USD 37.7 Mn) to Vishwa Samudra Group, a diversified infrastructure platform, to support the group's funding requirements for its road HAM projects and provide bridge capital for timely execution.

The investment provides last-mile financing for two near-completion road projects being developed under the NHAI Hybrid Annuity Model (HAM), in line with Kotak Alts' focus on cash-flow-backed real asset opportunities with clear execution visibility.

The transaction reflects continued interest in high-quality infrastructure-linked opportunities backed by experienced execution capabilities and long-term visibility. Vishwa Samudra Group also has a presence across sectors such as ports, harbors, bridges, and urban ropeways.

The investment is aligned with our focus on NHAI-backed annuity assets sponsored by groups with demonstrated infrastructure execution capabilities. This facility supports timely capital deployment across our road HAM assets and adds flexibility to our funding plans.

TWO PM MITRA TEXTILE PARKS CLEAR PPP HURDLE, EXPECT USD 2.12 BN INVESTMENT

Two Public-Private Partnership (PPP) projects under the PM MITRA (Prime Minister Mega Integrated Textile Region and Apparel) scheme have received approval from the Public Private Partnership Appraisal Committee (PPPAC), clearing a key milestone towards the launch of the bidding process. Together, the two integrated textile parks are expected to attract around INR 20,000 Cr (USD 2.12 Bn) in investment into India’s textile sector.

The PPPAC approved the bid documents for the proposed PM MITRA parks at Lucknow in Uttar Pradesh and Vansi in Gujarat’s Navsari district. The two greenfield integrated textile parks will be developed by private developers under the Design, Build, Finance, Operate and Transfer (DBFOT) model. Each park is expected to attract investments of approximately INR 10,000 Cr (USD 1.06 Bn) and create around 100,000 direct jobs and a further 200,000 indirect employment opportunities. The concession period for both projects has been fixed at up to 50 years.

The Lucknow PM MITRA Park will be developed across 1,000 acres through a special purpose vehicle jointly owned by the Centre and the Uttar Pradesh government, with equity participation of 49% and 51%, respectively. The project involves an estimated capital expenditure of INR 1,946.92 Cr (USD 206 Mn) to develop core infrastructure, plug-and-play facilities, common utilities, housing and logistics infrastructure.

The Gujarat PM MITRA Park at Vansi in Navsari district will be established over 1,142 acres through a similar joint venture between the Centre and the state government. The project carries an estimated cost of INR 3,209 Cr (USD 340 Mn) and will include investments in civil infrastructure, common effluent treatment facilities, power infrastructure, commercial amenities and logistics infrastructure.

ADB USD 10 MN FUNDING TO EXPAND DIGITAL EDUCATION INFRASTRUCTURE IN INDIA

The Asian Development Bank (ADB) partnered with Schoolnet India Limited to improve learning outcomes across the country through a USD 10 Mn financing package. The initiative aims to scale up digital learning infrastructure in 30,000 government schools, directly benefiting 4.5 million students.

Currently, only 26% of kindergartens through secondary schools possess computer laboratories, while just 29% feature smart classrooms. The Schoolnet Digital Learning Project aims to bridge these access gaps. The project aligns with India's National Education Policy 2020 by deploying technology-enabled learning systems. Plans include installing computer laboratories in at least 1,000 schools and setting up 58,000 digital classrooms.

The funding structure includes a USD 5 Mn loan from LEAP 2 (Leading Asia's Private Infrastructure Fund 2). This fund is managed by ADB and capitalised by a USD 1.5 Bn commitment from the Japan International Cooperation Agency. The investment focuses heavily on human capital alongside hardware. The project framework requires training at least 56,000 teachers on digital pedagogy. Furthermore, it will deliver educational materials designed to strengthen inclusive, safe, and equitable teaching practices.

List of Key Transactions - Q2 2026

Source: YOG INFRA analysis

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