Infrastructure & PPPs in India - Q2 2025 Update - Transport and Urban Infra

YOG INFRA Q2 2025 insights

INDIA is seeing rapid growth in transport and urban infrastructure development, including a very visible pipeline for investors. For instance, NHAI has released its first-ever Asset Monetisation Strategy for the road sector, outlining plans to unlock the value of operational national highway assets and boost public-private partnerships. Apart from roads and highways, new projects have been annouced in ports, ropeways, urban infrastructure and tourism sectors.

Read more in our latest insight for the country.

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

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April 2025

PPP PROJECT UNDER CONSIDERATION TO DEVELOP KSRTC’S THAMARASSERY DEPOT

A public-private partnership (PPP) project is under consideration for developing the Kerala State Road Transport Corporation’s (KSRTC) Thamarassery depot in Kozhikode district to improve rural and inter-district services. Preparation of the masterplan will begin soon and will also address urgent renovation needs.

A team comprising architects, local representatives, and Public Works Department officials has inspected the site to assess requirements and suggest suitable development plans. The one-acre depot can be upgraded with better facilities for passengers and staff, helping to boost revenue from rural operations. The depot currently manages over 30 services with limited staff, despite operating from a 45-year-old building and facing several infrastructure challenges.

The depot ranks second in rural revenue generation in the district. There were initially over 40 services which were cut short citing shortage of conductors and drivers. The proposal involves implementing a Build-Operate-Transfer (BOT) project under the PPP model, including a two-storey building with an underground maintenance workshop. Additional funding may come from corporate social responsibility (CSR) contributions.

INDIA APPROVES USD 2.7 BN, 167 KM HIGHWAY

The Indian government has approved the construction of a 166.80 km four-lane greenfield access-controlled highway from Mawlyngkhung (near Shillong) in Meghalaya to Panchgram (near Silchar) in Assam. The project, to be built under the Hybrid Annuity Model, will cost INR 22,864 Cr (USD 2.7 Bn). The highway will pass through 144.80 km in Meghalaya and 22 km in Assam, enhancing connectivity between the two states. It will also improve travel efficiency between Guwahati and Silchar and provide better access to Tripura, Mizoram, Manipur, and the Barak Valley region, significantly reducing travel time and distance.

This corridor will boost regional logistics, support economic development, and benefit industries in Meghalaya, particularly in cement and coal-producing areas. Additionally, it will enhance connectivity to key airports—Guwahati, Shillong, and Silchar—while promoting tourism in the scenic regions of Northeast India.

Traversing districts such as Ri Bhoi, East Khasi Hills, West and East Jaintia Hills in Meghalaya, and Cachar in Assam, the project is expected to decongest the existing NH-06. It also integrates with major national highways like NH-27, NH-106, NH-206, and NH-37, offering seamless connectivity to key cities including Guwahati, Shillong, Silchar, Imphal, Aizawl, and Agartala.

MAHARASHTRA EYES USD 100 BN INFRASTRUCTURE BOOST

Maharashtra is set to embark on an infrastructure expansion, with financing worth USD 100 Bn expected to be secured over the coming months. At the IMEC Summit 2025, the state’s push aimed at transforming Maharashtra into a logistics and manufacturing powerhouse. Between 2014 and 2019, the state invested around USD 30 Bn in infrastructure, leading to the development of projects such as the Coastal Road, Atal Setu, Samruddhi Highway, and the Navi Mumbai airport. Building on this momentum, the government has recently tied up with Indian financial institutions to raise USD 50 Bn and plans to secure another USD 50 Bn from foreign investors within the next three to four months.

Planned infrastructure includes new airports, ports, highways, and river linkage initiatives. Key projects involve:

• Navi Mumbai airport

• A second airport in Pune

• A new terminal in Shirdi

• A brownfield airport in Nagpur

• The Vadwal port project, projected to be three times larger than the current JNPT port

In addition, river linkage projects are being developed to address water scarcity in regions like Marathwada. One such initiative will bring in 50 TMC (thousand Mn cubic feet) of water, with the goal of making Marathwada drought-free.

ADANI HIGHEST BIDDER FOR USD 448 MN INDIA ROPEWAY PPP

Adani Group has offered the highest revenue share for an INR 3,880 Cr (USD 448 Mn) ropeway project in northern India. The infrastructure conglomerate proposed to share 41.99% of its annual revenue with National Highways Logistics Management Limited, outbidding GR Infraprojects, which offered 37.37%. Two other bidders offered less than 18%, while another sought grant funding.

The project involves the construction of a 12.9 km ropeway between Sonprayag and Kedarnath in Uttarakhand, under a design, build, finance, operate, and transfer (DBFOT) model. This will be Adani Group's first ropeway project. The group typically finances its transport infrastructure initiatives through a mix of debt and equity.

It will use tri-cable detachable gondola technology with a design capacity of 1,800 passengers per hour per direction, capable of carrying 18,000 people daily.

MMRDA INKS USD 49 BN MOUS WITH FINANCIERS TO BOOST INFRA PROJECTS

The Mumbai Metropolitan Region Development Authority (MMRDA) (MoUs) worth INR 4.07 Lakh Cr (USD 49 Bn) with prominent financial institutions to support a range of infrastructure projects across the Mumbai Metropolitan Region (MMR).

As part of the MoUs, the Housing & Urban Development Corporation (HUDCO) will explore and extend funding up to INR 1.5 Lakh Cr (USD 18 Bn) over the next five years. In addition to financial support, HUDCO will also provide consultancy services and capacity-building assistance to meet the region’s urban infrastructure needs.

Two major public sector financiers—REC and Power Finance Corporation (PFC)—have each pledged INR 1 Lakh Cr (USD 12 Bn). The Indian Railways Finance Corporation (IRFC) has committed INR 50,000 Cr (USD 6 Bn), while the National Bank for Financing Infrastructure and Development (NaBFID) has pledged INR 7,000 Cr (USD 850 Mn). HUDCO will also offer strategic advisory services to help align projects with the region’s future urban needs.

INDIAN AUTHORITY SWITCHES TO BOT FOR ROPEWAY PROJECTS

An Indian procuring authority has switched the development format for two ropeway projects to the Build, Operate, Transfer (BOT) model following market feedback. One project is a 5.76 km-long ropeway connecting Brahmagiri to the Anjaneri hills at Nashik, Maharashtra, estimated to cost INR 3.76 Bn (USD 44 Mn). The other is a 1.4 km-long ropeway connecting Kamakhya railway station to the Kamakhya temple on the Nilachal hill in Guwahati, Assam.

Both projects were initially tendered under the Hybrid Annuity Model (HAM), wherein the government grants funding of 40% of the project’s cost, with the remainder arranged by the developer through a combination of equity and debt. Market feedback indicated that developers prefer smaller projects up to INR 40 Bn (USD 537 Mn) under the BOT model due to manageable equity investments and challenges in securing debt for larger projects. Additionally, lenders consider ropeways a new segment, as large-scale cable car systems are being built in India for the first time.

NABFID, NEW DEVELOPMENT BANK PARTNER TO BOOST INFRA, GREEN PROJECTS IN INDIA

The National Bank for Financing Infrastructure and Development (NaBFID) has signed a strategic Memorandum of Understanding (MoU) with the New Development Bank (NDB) to accelerate infrastructure financing and promote sustainable development in India. This collaboration aims to deepen the infrastructure financing market, address existing funding gaps, and foster a robust support ecosystem.

Key areas of collaboration include renewable energy initiatives, sustainable water and sewage systems, and capacity-building efforts such as joint seminars and workshops to strengthen institutional capabilities. The partnership also envisions joint research and thematic collaborations to unlock long-term infrastructure opportunities.

NDB, which has committed over USD 35.6 Bn in infrastructure and development financing across emerging markets, brings extensive experience in mobilizing capital for sustainable projects. Through this MoU, both institutions aim to catalyze a deep and liquid market for infrastructure-related financial instruments including bonds, loans, and derivatives.

MAY 2025

VIZHINJAM PORT: A LEAP TOWARDS MAKING INDIA A MARITIME HUB

The commissioning of the Vizhinjam International Transhipment Deepwater Multipurpose Seaport, developed under a public-private partnership between the Kerala government and Adani Ports and Special Economic Zone Ltd (APSEZ) in May 2025, marks a significant advancement in India’s maritime sector.

India currently relies on foreign ports to handle approximately 75% of its transshipment cargo, resulting in an estimated annual revenue loss of USD 200 Mn–USD 220 Mn. The new port offers a strategic opportunity to reduce this dependence. With a natural draft of nearly 20 metres, the port requires minimal capital dredging and sits close to key international east-west shipping routes linking Europe, West Asia, and the Far East, making it well-positioned to become a leading transshipment hub.

Ultra-large container vessels can dock at Vizhinjam without route deviation, enabling significant cost savings. As India’s first semi-automated port, equipped with remote-controlled quay cranes and an AI-powered vessel traffic management system, Vizhinjam promises to cut vessel turnaround times and enhance operational efficiency.

India’s total container throughput stands at about 20 Mn TEUs (twenty-foot equivalent units), in stark contrast to China’s 330 Mn TEUs, underscoring the need for modern maritime infrastructure like Vizhinjam.

In Phase 1, investments were structured as follows:

• Kerala Government: INR 5,595 Cr (USD 671 Mn)

• Adani Ports (APSEZ): INR 2,454 Cr (USD 294 Mn)

• Viability Gap Fund (Union Government): INR 818 Cr (USD 98 Mn)

Under future expansion plans, the Kerala government and APSEZ have agreed on an additional investment of INR 9,500 Cr (USD 1.14 Bn) by 2028. Supporting infrastructure such as warehousing, logistics parks, and industrial zones will be key to transforming Vizhinjam into a comprehensive commercial maritime ecosystem.

ROPEWAY TO KUNJAPURI TEMPLE: UTTARAKHAND TAPS SWISS EXPERTISE FOR PILGRIM-FRIENDLY INFRASTRUCTURE

The Uttarakhand government has signed a Memorandum of Understanding (MoU) with Bartholet Maschinenbau AG, a Switzerland-based company, to develop a ropeway from Tapovan (Rishikesh) to Kunjapuri Temple in the Tehri district. The project, aimed at boosting spiritual tourism and reducing environmental impact, will be developed under the public-private partnership (PPP) model using the design-build-finance-operate-transfer (DBFOT) framework.

Bartholet will prepare the Detailed Project Report (DPR) at its own expense, based on comprehensive techno-economic assessments. The ropeway will improve safe and eco-friendly access to the site, significantly reducing travel time and road traffic in the fragile Himalayan region.

VADHAVAN PORT TO BE THREE TIMES BIGGER THAN JAWAHARLAL NEHRU PORT

The upcoming Vadhavan Port in Maharashtra’s Palghar district is poised to become one of the world’s top 10 ports and will be three times larger than the Jawaharlal Nehru Port (JNPT) in Nhava Sheva, which currently handles about 50% of India’s containerised cargo at major ports.

With an estimated investment of INR 76,220 Cr (USD 9.2 Bn), the project is being developed by Vadhavan Port Project Ltd (VPPL)—a Special Purpose Vehicle formed through a joint venture between Jawaharlal Nehru Port Authority (74%) and Maharashtra Maritime Board (26%). The port will be developed under the public-private partnership (PPP) model, encompassing core infrastructure, container terminals, and commercial facilities.

To enhance regional infrastructure, a greenfield airport is also being considered for the Vadhavan region, with a pre-feasibility study underway. The port will feature integrated transport connectivity, linking to the national highway network, existing rail lines, and the upcoming Dedicated Freight Corridor, ensuring efficient cargo movement across the region.

UTTARAKHAND SECURES USD 229 MN FROM EUROPEAN INVESTMENT BANK FOR URBAN INFRASTRUCTURE PROJECTS

Uttarakhand has secured INR1,910 Cr (USD 229 Mn) in funding from the European Investment Bank (EIB) to improve urban infrastructure in the state. The funding will support drinking water and sewerage projects in Pithoragarh, and drinking water supply systems in Sitarganj, Rudrapur, and Kashipur. These initiatives fall under the Uttarakhand Urban Sector Development Agency (UUSDA) and are aimed at enhancing basic amenities in both border and urban regions.

Detailed Project Reports (DPRs) have already been reviewed by the Department of Economic Affairs (DEA), Ministry of Finance, and shared with the EIB. The projects received approval during a recent virtual meeting between the DEA and EIB.

The initiative is considered a major step in improving urban sanitation and access to clean drinking water, particularly in remote and border towns like Pithoragarh. These improvements are expected to boost living standards and drive overall development across the region.

BADLAPUR TO KANJURMARG METRO PROJECT LAUNCHING IN 2026

Mumbai’s urban transport system is set for a major upgrade with the construction of the Badlapur-Kanjurmarg metro corridor, which will become India’s longest metro line and the first to cross a creek. Spanning 38 kilometres, the corridor will significantly improve connectivity across Greater Mumbai, allowing commuters to reach the city centre in under an hour.

Slated to begin construction in 2026, the project will be developed under a public-private partnership (PPP) model by the Mumbai Metropolitan Region Development Authority (MMRDA).  The new metro line is expected to serve approximately 700,000 passengers daily, offering a faster, more reliable, and weather-resilient alternative.

The detailed project report (DPR) has been vetted and approved by national and international technical experts, confirming the project’s feasibility and environmental sustainability. This metro line forms a key component of MMRDA’s wider strategy to develop an integrated and low-carbon transport network for Mumbai. By reducing reliance on fossil-fuel-based commuting and alleviating road and rail congestion, the corridor supports India’s climate action goals and sustainable urban development agenda.

The project still awaits final approvals from the state government, which retains oversight of the PPP framework and implementation plans. Given the regulatory scope, coordination with the central government, particularly the Ministry of Urban Development—will be essential throughout the project lifecycle. If approvals proceed without delay, construction is expected to start in 2026, with a completion timeline of approximately five years. The corridor is projected to stimulate economic activity, support urban renewal in the eastern suburbs, and generate employment opportunities.

JUNE 2025

INDIA TO GET USD 10 BN URBAN INFRASTRUCTURE PUSH FROM ADB WITH FOCUS ON METRO, RRTS AND CITY SERVICES

The Asian Development Bank (ADB) has announced a five-year initiative to mobilize up to INR 83,000 Cr (USD 10 Bn) to enhance India’s urban infrastructure. The program will focus on metro rail extensions, regional rapid transit systems (RRTS), and urban service improvements. The initiative is anchored by the Urban Challenge Fund (UCF), which will combine sovereign loans, private sector investments, and third-party capital. ADB aims to accelerate delivery, attract private capital, and support India's long-term urban transformation goals under its Viksit Bharat @ 2047 vision.

ADB will also provide INR 25 Cr (USD 3 Mn) in technical assistance to help state governments and urban local bodies develop bankable infrastructure projects and build institutional capacity.

ADB’s existing urban portfolio includes 27 active loans worth INR 42,800 Cr (USD 5.15 Bn). Over the past decade, it has committed INR 33,300 Cr (USD 4 Bn) to urban transport, backing metro and RRTS projects spanning 300 kilometers in cities such as Delhi, Mumbai, Chennai, Bengaluru, Nagpur, and others. These initiatives aim to reduce urban congestion, lower emissions, and improve accessibility, especially for vulnerable populations, including people with disabilities.

ADB UNVEILS USD 10 BN INDIA URBAN INFRA PLAN

The Asian Development Bank (ADB) has announced a five-year initiative to invest up to USD 10 Bn to boost urban infrastructure across India. The initiative includes sovereign loans, private sector financing, and third-party capital and aims to support metro extensions, new regional rapid transit system (RRTS) corridors, and upgrades to urban infrastructure and services. This plan is anchored by India’s flagship Urban Challenge Fund (UCF), which ADB is supporting to attract private investment into urban infrastructure. ADB is also providing USD 3 Mn in technical assistance to help design bankable projects and strengthen the capacity of states and urban local bodies.

With over 40% of India’s population expected to reside in urban areas by 2030, the initiative focuses on ensuring sustainable growth through improved urban services. ADB has already engaged with more than 110 cities in 22 states for water supply, sanitation, housing, and solid-waste management. The active urban portfolio includes 27 loans worth USD 5.15 Bn.

In urban transport, ADB has committed USD 4 Bn over the past decade to metro and RRTS projects spanning 300 kilometers in eight cities, including major urban centers. These efforts aim to reduce congestion, lower emissions, and improve access for vulnerable groups. Under ADB’s 2023–2027 country partnership strategy for India, it is prepared to provide over USD 5  Bn annually, including about USD 1 Bn in non sovereign operations to catalyze additional private investment.

INDIA'S HIGHWAY AUTHORITY RELEASES ASSET MONETISATION STRATEGY

The National Highways Authority of India (NHAI) has released its first-ever Asset Monetisation Strategy for the road sector, outlining plans to unlock the value of operational national highway assets and boost public-private partnerships. The strategy covers the period from 2025 to 2030 and focuses on mobilising capital through toll-operate-transfer (ToT), infrastructure investment trusts (InvITs), and securitisation models.

As part of the strategy, NHAI plans to launch a public InvIT to attract retail investors and revise ToT bundle offerings. This structured approach aims to increase transparency, attract a broader investor base, and deepen stakeholder engagement.

The strategy is aligned with India's second National Monetisation Pipeline (NIP), which targets INR 10 Tn (USD 117 Bn) over five years from monetising infrastructure assets across sectors. The road sector is expected to contribute INR 3.5  Tn (USD 41Bn) of this total. To date, NHAI has raised over INR 1.4 Tn across more than 6,100 km of national highways under the monetisation framework. The new strategy is built on three pillars: value maximisation of government road assets, process transparency and investor information dissemination, and market development.

This initiative represents a shift toward sustainable, market-driven infrastructure financing, reducing reliance on traditional funding and enabling long-term asset quality and performance improvements through private sector participation.

ADANI IN TALKS WITH SBI TO FINANCE NAVI MUMBAI AIRPORT SECOND PHASE

Adani Group’s Navi Mumbai International Airport is in discussions with State Bank of India (SBI) to finance the second phase of its construction. The second terminal is planned to have an annual capacity of 30 Mn passengers.

Detailed project reports for the second phase are currently being prepared, with in-house teams working alongside architects. Financing discussions are underway with SBI, and other funding options will also be explored. A final cost estimate will be determined once the project reports are complete.

In 2022, Adani Enterprises secured INR 127.7Bn (USD 1.7Bn) in financing for the airport's first phase, fully underwritten by SBI. The first terminal, with a capacity of 20 Mn passengers annually, is nearing operational readiness. Several airlines have committed to begin domestic operations from the facility.

Since acquiring the concession from the previous developer, Adani has revised the airport’s master plan, increasing total projected capacity from 60 Mn to 90 Mn passengers annually.

CUBE HIGHWAYS TRUST ACQUIRES TWO INDIAN HIGHWAYS FROM NIIF

Cube Highways Trust (Cube InvIT), backed by I Squared Capital, has completed the acquisition of two operational annuity-based road projects from the National Investment and Infrastructure Fund (NIIF) in India. The combined enterprise value of the assets is INR 41.85 Bn (USD 486 Mn), subject to closing adjustments.

The acquired assets include the Quazigund Expressway and the Athaang Jammu Udhampur Highway, spanning approximately 80 km in Jammu and Kashmir. Quazigund Expressway features one of India’s longest bi-directional tunnels, while the Jammu Udhampur route serves as a critical link between Jammu and Srinagar.

Both assets have a residual concession period of over six years and are backed by fixed semi-annual annuity payments from the National Highways Authority of India (NHAI), ensuring stable and predictable revenue streams independent of traffic volumes.

ADB TO INVEST USD 10 BN IN URBAN INFRASTRUCTURE PROJECTS ACROSS INDIA

The Asian Development Bank (ADB) has announced a five-year plan to invest up to USD 10 Bn in India’s urban infrastructure. The focus will be on expanding metro rail networks, developing regional rapid transit systems (RRTS), and enhancing city-level services such as water supply, sanitation, and housing. The initiative aligns with India's urbanisation strategy, aiming to improve infrastructure as over 40% of the population is expected to reside in cities by 2030.

The funding plan will leverage a mix of sovereign loans, private sector investments, and third-party capital. A portion of the investment will be channelled through India’s Urban Challenge Fund (UCF), designed to attract private capital into urban infrastructure projects. Additionally, ADB will provide USD 3 Mn in technical assistance to support project preparation and capacity building for local governments.

ADB’s involvement in India spans urban projects across more than 110 cities in 22 states, covering sectors like water supply, solid waste management, sanitation, and housing. Currently, ADB’s urban portfolio includes 27 active loans worth USD 5.15 Bn.

In the transport sector, ADB has committed USD 4 Bn over the past decade to metro and RRTS projects covering approximately 300 km in eight cities, including major urban centres. Discussions have taken place on expanding metro networks, promoting transit-oriented development (TOD), and scaling up rooftop solar initiatives. The potential to expand the UCF and replicate successful urban transport models in other regions was also explored 

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List of Key Transactions - Q2 2025

Source: YOG INFRA analysis

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