YOG INFRA Q4 2024 insights
INDIA is making notable developments in transport PPPs - with a strong focus on ports and road sub-sectors. In 2025, the revamped BOT PPP concession model is expected to bring in international developers and funds to partner with local developers to support equity financing and investments for these projects. Also, there is an enhanced focus on urban and social infra PPPs - primarily in healthcare and education sectors; wherein projects have been annouced by various state governemnts.
Read more in our latest insight for the country.
This is second publication on a 2-part insight series on India
OCTOBER 2024
KARNATAKA PLANS TO SET UP 11 MEDICAL COLLEGES UNDER PPP MODEL
In 11 districts of Karnataka, eleven additional medical institutions will open up using a public-private partnership (PPP) model - these include Tumakuru, Davangere, Chitradurga, Bagalkot, Kolar, Dakshina Kannada, Udupi, Bengaluru Rural, Vijayapura, Vijayanagara, and Ramanagaram.
The state government would provide private companies with land to build colleges on. The businesses will provide money for the infrastructure, teaching, and support staff, and college buildings. The district hospital will then be turned over by the government to a private company for clinical use.
In the 2024–25 academic year, two medical colleges are also planned in the Davanagere and Bengaluru Rural districts. Site allocation and other permissions for the rural district medical colleges in Davanagere and Bengaluru have been finalised. There are currently 57 medical colleges in Karnataka, including 23 that are governed by the government.
TELANGANA’S SPORTS UNIVERSITY TO COME UP IN PPP MODEL
The government of Telangana will establish Young India Physical Education and Sports University in a Public Private Partnership (PPP) model on the lines of Young India Skill University. The proposed university will offer 14 sports training programs in cricket, hockey, football, basketball, swimming, tennis, badminton, shooting, boxing, wrestling, table tennis, athletics, gymnastics, and aquatics.
The Sports University will start operations in the Gachibowli Sports Stadium. Since the stadium is spread over 70 acres and ready-made facilities for various sports training were already provided, the facilities should be upgraded in a sophisticated manner to meet future needs.
KARNATAKA PLANS INDIA’S LARGEST TUNNEL IN BENGALURU
The 40-km underground urban tunnel will be a public-private partnership (PPP) project. The Bengaluru municipal corporation will borrow INR 14,000 Cr (USD 1.6Bn) and raise INR 5,000 Cr (USD 577 Mn) through transferable development rights (TDR). The remaining INR 21,000 Cr (USD 2.4 Bn)will be through a private concessionaire who will recover the money from tolls and other forms of asset monetization.
The government is also planning 100 km elevated corridors (INR 12,000 Cr/ USD 1.3 Bn), double-decker metro lines (INR 9,000 Cr/ USD 1 Bn), 80 km of metro network under Phases 3 and 3A (INR 40,000 Cr/ USD 4.6 Bn), additional road network in lake and stormwater drain buffer areas (INR 3,000 Cr/ USD 346 Mn), sky deck (INR 500 Cr/ USD 57 Mn) and the Bengaluru Business Corridor (INR 27,000 Cr/ USD 3.1 Bn)
ANDHRA PRADESH ISSUES EOI TO BOOST PORT INFRASTRUCTURE, ENHANCE MARITIME TRADE
The Andhra Pradesh government has taken a major step to strengthen its maritime infrastructure by issuing an Expression of Interest (EOI) for the construction, operation, and maintenance of various ports across the state. This initiative aims to boost economic growth by modernising port facilities and enhancing logistics and trade capabilities along the state’s extensive coastline.
By inviting both domestic and international investors, Andhra Pradesh seeks to develop strategic ports that can handle increased cargo volumes and create efficient trade routes. The state’s location offers a unique advantage for coastal shipping, with its long coastline providing ample opportunities for maritime activities. The EOI outlines plans for public-private partnerships (PPPs), enabling private sector involvement in developing modern, sustainable, and efficient port operations. This approach is expected to draw significant investment, leveraging industry expertise to upgrade the state’s maritime infrastructure.
Andhra Pradesh’s focus on enhancing its ports reflects its broader commitment to strengthening the logistics sector, a crucial component of the state’s economic development. Modernising port infrastructure will facilitate regional industries and create a foundation for expanding international trade, ultimately leading to job creation and economic growth at both local and regional levels.
U.S., JAPAN AND SOUTH KOREA JOIN HANDS TO SUPPORT DIGITAL INFRASTRUCTURE IN INDIA
DFC, JBIC, and Korea Eximbank have came together to sign the Digital Infrastructure Growth Initiative for India Framework (DiGi Framework). This framework will support various projects in the information and communications technology sector, including 5G, Open RAN, submarine cables, optical fiber networks, telecom towers, data centers, smart cities, e-commerce, AI, and quantum technology.
This partnership is a result of the trilateral memorandum of understanding signed in Q3 of 2023, following a high-level meeting in Q1 of 2024. This collaboration between the three institutions is set to lay a solid foundation for addressing the demand for digital infrastructure in India. In a nutshell, this partnership is not just about building digital infrastructure – it’s about building bridges and fostering growth.
CENTRE RELEASES DRAFT GUIDELINES ON DEREGULATING PPP PORT TARIFFS
Amid long-standing calls by private port players to bring parity between recent winners of public-private-partnership (PPP) projects at major ports and players with older contracts, the Centre has brought out draft guidelines for tariff migration, which will allow concessionaires to switch tariff regimes to a market-based one. In the past, tariffs were previously regulated due to a limited competitive landscape, the evolving market conditions now necessitate deregulation. The initial aim of introducing tariff regulations in 2005 was to protect user interests while ensuring fair returns for ports and promoting competition and efficiency. However, significant shifts in the market and competitive landscape in the Indian port sector have occurred since then.
Under the new draft guidelines, PPP operators will have the authority to set their own scale of rates (SOR), subject to signing a supplementary agreement. Previously, the major port authorities were also the service providers to end users as well as concessioning authority, making tariff regulations crucial for protecting the interests of both port users and PPP operators.
With the transition to a landlord port model and increased private sector participation, the relevance of fixed tariff regulations has diminished. While the new regulations will allow greater pricing flexibility, they will not affect government revenues generated from these PPP projects, as there will be no changes to the royalty structure. The draft guidelines state that the royalty as a revenue share for major ports will not fall below the amount it would have received under the previous tariff fixation regime. This will be accomplished by converting the revenue share to royalty based on the project's previously determined Annual Revenue Requirement.
November 2024
PSU-RUN HOSPITALS TO GET AN UPGRADE UNDER PPP MODEL
With the Centre aiming for at least one major hospital in each of the 761 districts of the country, it has roped in public sector undertakings (PSUs) and other government agencies to expand their hospital capacity in partnership with the private sector and throw them open for use of the general public as well. The government has given the nod to the entities in the port sector, including Paradip Port, Chidambaranar Port Trust (formerly Tuticorin Port), Visakhapatnam Port and Mumbai Port to expand their hospital capacities for this purpose.
Under Public Private Partnership (PPP), Paradip Port would establish a 400-bed Super-specialty Hospital at Paradip with the option of developing a Medical College and further expanding the hospital on a PPP basis. Mumbai Port Trust is converting its 241-bed hospital into a 600-bed super specialty hospital to provide improved healthcare facilities to some 45,000 port employees and dependents and the general public in the catchment area on a PPP basis with an investment of about INR 700 Cr (USD 80 Mn).
India needs an additional 2.4 million hospital beds to reach the recommended ratio of 3 beds per 1,000 people, fuelling the demand for healthcare-related real estate space. India’s existing bed-to-population ratio is 1.3/1000 population (both private and public hospitals included).
MARITIME BOARD PLANS PPP IN TOURISM SECTOR
Kerala Maritime Board (KMB) will survey its scattered land parcels across 17 ports in the state to set up maritime-related industry and tourism ventures under a public-private partnership (PPP). The land parcels at Neendakara and Ashramam in Kollam and a port bungalow in Kozhikode will be surveyed first. KMB has called an EoI (expression of interest) to identify a firm that specializes in the topographic survey using specialized equipment. The land and buildings at Neendakara, Ashramam, and Kozhikode are intact with boundary walls but an assessment and revision of records is needed. Once work is complete at these locations, land in other ports from Vizhinjam to Kasaragod will be taken up step by step. This will also include land parcels in Thiruvananthapuram, Alappuzha, Kozhikode, Kannur, and Kasargod.
The aim is to develop these land and property under PPP for 30-50 years so that KMB will get an income, the govt will get revenue from GST and people in the respective region will get jobs. Before KMB was formed, the ports department handled ports, and the land used to be under the revenue department. Most of the land is seafront and some are non-seafront, and they are ideal for development. The topographic survey will also help assess the extent of land, free it up from encroachments (if any) and bring them under KMB.
NHAI PLANS TO BUILD NATIONWIDE OPTICAL FIBRE NETWORK
The National Highways Authority of India (NHAI), under the PPP model, has plans to lay down its own optical fibre cable (OFC) network, along the major highways. The strategic decision is aimed at building and enhancing the infrastructure for barrier-free tolling and smart highways, besides enabling leasing out of excess network capacity for commercial uses.
With a vast highway network spanning 146,000 kilometers, NHAI’s optical fibre cable (OFC) infrastructure will surpass the comparable networks established by RailTel and Power Grid Corporation of India Ltd (PGCIL) both in scale and reach, positioning it to manage the increasing data demands across the country. Though the exact cost of the planned OFC network will have to be determined, but if the entire existing NHAI network is to be converted to digital ways, the total investments needed could be over USD 4.12 Bn.
NHAI plans to develop its network through a public-private partnership (PPP) under the Build Operate Transfer (BoT) model. The network rollout will occur in phases, with bids being solicited in packages. Each successful bidder will enter into a separate concession agreement for the respective package. The project will be managed by National Highways Logistics Management Ltd (NHLML), a subsidiary of NHAI.
TATA POWER PARTNERS ZURICH AIRPORT'S INDIA PROJECT FOR RENEWABLES
Tata Power will supply renewable energy to Noida International Airport (NIA) as part of a 25-year deal. The Mumbai-based developer will invest USD 66 Mn to build solar and wind power, the development of critical dry utilities and smart energy infrastructure. Tata Power Trading Company will supply 10.8 MW of wind energy to the Zurich Airport-owned project, procuring power from assets developed by Tata Power Renewable Energy. Tata Power Renewable will also develop, operate and maintain 13 MW of onsite solar capacity to contribute to the airport’s overall energy needs.
The first phase of the airport, featuring a runway and a terminal, will be able to process 12 million passengers annually. It will cater to 70 million passengers per year once all four phases are completed.
INDIAN GOVERNMENT TO DEVELOP PUBLIC-PRIVATE PARTNERSHIP HOSPITALS IN ODISHA
The Indian government is set to introduce a pioneering initiative to establish Public-Private Partnership (PPP) speciality hospitals to provide affordable healthcare in four underserved districts of Odisha. These facilities will be supported by viability gap funding (VGF), a financial mechanism where private entities contribute investment and manage hospital operations. The Government recently approved VGF for establishing affordable 100-bed and 200-bed healthcare facilities in Angul, Barbil, Bhadrak and Jharsuguda.
These hospitals will be constructed under a design, build, finance, operate and transfer (DBFOT) model and are expected to begin operations by December 2026. The concessionaires will manage these hospitals for 32 years, with the option to extend their managerial period. The total project cost of INR 3.54 Bn (USD 42.7 Mn) was determined through competitive bidding. The VGF for capital expenditures will be shared between the central government and the state government, while the remaining funds will be provided by the private concessionaire. With adequate VGF support, successful PPP healthcare projects at these locations could be demonstrated. The model may be replicated in other districts of Odisha and other states.
These projects have received significant support and guidance from India's Department of Economic Affairs and NITI Aayog, a government agency that works to catalyse economic development in the country.
DECEMBER 2024
NHAI TO RAISE INR 1,000 CR (USD 115 MN) VIA GREEN BONDS FOR DELHI-MUMBAI EXPRESSWAY
The National Highways Authority of India (NHAI) will look to raise INR 1,000 Cr (USD 115 Mn) for the Delhi-Mumbai Expressway by issuing green bonds through its arm, DME Development. The highway authority will raise funds for implementing environment-friendly measures on the Delhi-Mumbai Expressway project.
The aggregate total size of the issue will be up to INR 1,000 Cr (USD 115 Mn), with a base issue size of Rs 500 Cr (USD 57 Mn). There will be a green-shoe option to retain oversubscription up to Rs 500 Cr (USD 57 Mn). The funds will be used for expenditure on avenue plantation, median plantation, construction of animal underpasses, natural stormwater drainage, streetlights powered by renewable energy (solar), waste recycling and reuse, and rainwater harvesting along the costliest expressway in the country.
The green bonds will help encourage investment in eco-friendly projects, especially in the roads and highways sector, and will facilitate long-term cost savings by reducing energy consumption and lowering the impact of vehicular emissions on the environment. The special purpose vehicle of NHAI, DME Development, raises debt against the future proceeds of the ambitious highway project, a method known as toll securitization. DME Development aims to raise about INR 48,000 Cr (USD 5.5 Bn) from banks and financial markets through loans and bonds and has successfully raised around INR 42,000 Cr (USD 4.8 Bn) so far for the implementation of the Delhi-Mumbai Expressway project.
GOA SET TO BECOME INDIA’S KEY CARGO, CRUISE DESTINATION
The Central Government, in coordination with the Goa government, is actively working to position Goa as a prominent cargo and cruise destination. This development is part of a larger national strategy to enhance India’s coastal infrastructure and bolster the tourism and shipping industries.
The government is constructing an International and Domestic Cruise Terminal, along with a Ferry Terminal, at Mormugao Port. The project, with an estimated cost of INR 101.72 Cr (USD 12 Mn), is expected to be completed by March 2025. These facilities aim to accommodate a growing number of cruise ships and cargo vessels, enhancing Goa’s role as a key gateway for both tourism and trade.
ADB, NABFID TO COLLABORATE ON FINANCING INDIA’S INFRASTRUCTURE SECTOR
The Asian Development Bank (ADB) and India’s National Bank for Financing Infrastructure Development (NaBFID) have signed a letter of intent (LOI) to enhance their collaboration in financing the country’s infrastructure sector. The LOI aims to promote climate resilience and support the improvement of urban and rural infrastructure, environmental sustainability, and public and private investment.
ADB will also provide NaBFID with a technical assistance grant to enhance its capacity and build climate finance capability, addressing the huge funding requirement for bridging India’s infrastructure financing gap. Other support will be lines of credit through ADB-facilitated private sector investments to help cofinance and transform urban infrastructure and innovative projects that drive sustainable and inclusive growth in India. The partnership with NaBFID builds on ADB’s longstanding work in India to transform urban infrastructure and drive sustainable and inclusive growth.
INDIAN RAILWAYS LOOKS TO LAY PPP TRACK FOR NEW PROJECTS
The Indian Railways is planning to adopt the Public-Private Partnership (PPP) model for developing new projects as the state-run transporter looks to share the costs of large-scale infrastructure projects. The railways is proposing to build key projects including new commercial lines such as mineral corridors in the coming months on the PPP mode.
The shift in strategy follows an infrastructure review meeting attended by several ministries in which it was flagged that the railways need to also consider PPP for infrastructure creation instead of solely relying on the engineering, procurement, and construction mode. Despite the proposed shift towards the PPP model, Indian Railways is expected to receive a significant boost in capital expenditure in the FY26 budget, over the INR 2.62 L Cr (USD 31.5 Bn) provided for this fiscal year.
The three major economic corridor programs, focusing on energy (mainly coal), minerals, and cement transportation, are estimated to cost over INR 5.25 L Cr (USD 63.2 Bn) by 2031. Additionally, the government is advancing port-rail connectivity under the Sagarmala program, with several projects currently under development.
UTTAR PRADESH GOVT NETS USD 48.2 BN WORTH OF PPP PROJECTS ACROSS VARIOUS SECTORS
Uttar Pradesh (UP), which is aspiring to become a $ trillion economy, has netted public-private partnership (PPP) projects worth almost INR 4 Trn (USD 48.2 Bn) in different sectors. Now, to further expand its PPP pipeline, UP is looking to formulate a new PPP policy to attract private investment. The PPP projects amounted to nearly 10% of total investment proposals received at the UP Global Investors Summit (GIS) 2023. Since UP had garnered PPP projects worth INR 40 Trn (USD 462 Bn) at the GIS 2023, the state’s PPP project basket is estimated at INR 4 Trn (USD 46 Bn).
The Government emphasized a ‘future ready’ PPP policy framework for project identification, stakeholder consultation, bid preparation, procurement, contract management, post-implementation oversight, etc. The proposed cell will focus on developing the PPP framework, promoting inter-departmental coordination, facilitating private investment, and ensuring alignment with government schemes.
List of Key Transactions - Q4 2024

Source: YOG INFRA analysis
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