Infrastructure & PPPs in India - Q4 2025 Update - Transport and Urban Infra

YOG INFRA
4 days ago
15 min read

INDIA's transport and urban infrastructure sectors are gaining strong momentum, supported by expanding Public-Private Partnership (PPP) frameworks, policy reforms, and diversified financing channels. Key developments include port and container terminal expansions, metro and bus terminal projects, and investments in healthcare and utility infrastructure. Development finance institutions and private investors are scaling up support through loans, bonds, and advisory partnerships, while states are actively promoting PPPs, asset monetization, and land redevelopment. Together, these initiatives are accelerating nationwide modernization of transport, urban services, and social infrastructure.

Read more in our latest insight for the country.

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

OCTOBER 2025

ADB APPROVED USD 299 MN LOAN FOR THE DELHI-MEERUT RRTS PROJECT

Delhi-Meerut Regional Rapid Transit System (RRTS) Project progressed as Asian Development Bank (ADB) approved the USD 299 Mn loan as the final tranche of the Multi-Tranche Financing Facility (MFF). ADB is financing the Delhi-Meerut RRTS project under its Multi-tranche Financing Facility (MFF) in a total of four tranches.

The Delhi-Meerut RRTS project has a total estimated cost of INR 302.74 Bn (around USD 3.5 Bn) which is supported by a multi-layered financing framework combining international development banks with central and state government contributions.

The Delhi-Meerut RRTS Corridor is an 82 km semi-high speed rail corridor which connects Delhi, Ghaziabad, and Meerut. The 55 km stretch of Delhi-Meerut RRTS Corridor between New Ashok Nagar and Meerut South covering 11 stations is operational.

IWAI HANDED OVER HALDIA MULTI-MODAL TERMINAL TO PPP OPERATOR IRC NATURAL RESOURCES

The Inland Waterways Authority of India (IWAI) officially handed over the operations and maintenance of the Haldia Multi-Modal Terminal (MMT) in West Bengal to IRC Natural Resources Private Limited, advancing the government’s efforts to bolster inland waterway infrastructure through Public Private Partnership (PPP). The terminal, built on 61 acres of land leased from the Syama Prasad Mookerjee Port Trust (formerly Kolkata Port Trust), features modern facilities including jetty, conveyor systems, and storage areas.

Strategically positioned near Haldia, the terminal connects to National Highway 41 and is set for rail integration, enhancing multimodal logistics. This setup is expected to streamline cargo transport, offering a greener, more cost-effective alternative to road and rail, particularly for shipments to India’s Northeastern states and Bangladesh. To ensure efficient and sustained operation of the terminal, IWAI adopted a Public Private Partnership (PPP) model. Under the 15-year concession agreement (10 years initial, extendable by 5), the company will operate the terminal on an Equip, Operate, and Transfer (EOT) basis.

ADB APPROVED USD 190 MN LOAN FOR INDORE METRO RAIL PROJECT

The Asian Development Bank (ADB) approved a USD 190 Mn loan to support the development of the Indore Metro expansion project, a transformative initiative aimed at enhancing urban mobility, reducing pollution, and promoting inclusive growth in the largest city of Madhya Pradesh, India.

The project will finance the construction of an 8.62-km underground metro line with seven stations, connecting congested areas of Indore to the airport. The metro line is expected to significantly reduce greenhouse gas emissions, by an estimated 12,414 tons of CO₂ annually, and improve air quality in one of India’s fastest-growing urban centers. The initiative includes multimodal integration with existing bus and feeder services, improving access to educational institutions and markets.

Commercial spaces at select stations will be allocated to women entrepreneurs and self-help groups, while safety audits and ridership data will guide future improvements. A multimodal integration study will also be conducted to optimize connectivity between metro, airport, railway, and bus systems. The Madhya Pradesh Metro Rail Corporation Limited (MPMRCL) will implement the project, with operations expected to begin by January 2030.

IRCON INTERNATIONAL AND COAL INDIA SIGNED MOU TO BOOST RAIL INFRASTRUCTURE DEVELOPMENT

Coal India Ltd (CIL), the state-owned coal producer, entered into a non-binding Memorandum of Understanding (MoU) with IRCON International Ltd to jointly develop rail infrastructure aimed at improving coal transportation efficiency across the country. Under the MoU, Coal India and IRCON will collaborate on planning, designing, and developing rail infrastructure projects, including construction and maintenance of railway lines, sidings, and related facilities.

Although non-binding, the partnership sets a strategic framework for long-term cooperation, leveraging IRCON’s engineering expertise and Coal India’s operational scale. The initiative is expected to reduce transit delays, decongest key routes, and ensure faster coal evacuation from mines to power plants and industrial consumers. This move aligns with Coal India’s goal of modernizing its logistics infrastructure to improve throughput and cost efficiency across its subsidiaries.

CESL CONCLUDED MEGA TENDER FOR 10,900 E-BUSES UNDER PM E-DRIVE SCHEME

State-owned Convergence Energy Services Ltd (CESL) opened a mega tender to procure 10,900 electric buses for cities including Hyderabad, Surat, Ahmedabad, Delhi and Bengaluru. The tender marked a significant milestone in India's journey toward sustainable, zero-emission public transport systems under the National Electric Bus Program (NEBP).

This mega tender encompasses multiple cities and Union Territories, including Hyderabad, Surat, Ahmedabad, Delhi, and Bengaluru. It covers both AC and Non-AC buses across various categories, including Standard Floor, Low Floor, and BRT (Bus Rapid Transit) models. Hyderabad will receive approximately 2,000 buses across two lots, Surat and Ahmedabad will together add another 1,600 buses, Delhi is set to induct 2,800 buses, and Bengaluru will see the largest allocation of 4,500 buses under this program.

Under the GCC framework, private operators will be responsible for the ownership, operation, and maintenance of the e-buses, along with the development of charging infrastructure, and energy management systems at depots provided by the city authorities. The city transport agencies will pay a fixed per-kilometre fee, ensuring affordability and financial sustainability. Once operational, these buses will play a crucial role in reducing carbon emissions, lowering noise pollution, and improving air quality across India's major urban centers. Each electric bus is expected to replace a conventional diesel bus, resulting in an estimated reduction of over 4 Mn tonnes of CO₂ emissions annually over the project's lifetime.

NOVEMBER 2025

KARNATAKA INVITED BIDS FOR USD 16.3 MN TECH PARK IN MANGALORE UNDER PPP MODEL

The Government of Karnataka invited bids to develop a commercial office technology park project in Mangalore under the Public-Private Partnership (PPP) model. The project, estimated to cost INR 1.35 Bn (USD 16.3 Mn), is expected to generate over 11,000 direct and indirect jobs, marking a major milestone in the state’s Beyond Bengaluru initiative to expand technology-driven growth beyond the capital.

The technology park will come up on a 3.285-acre site along Blueberry Hills Road in Derebail, less than one kilometre from National Highway 66 (NH-66). The total achievable built-up area under the base Floor Area Ratio (FAR) is 3,52,156 sq. ft, with developers allowed to expand using premium FAR and Transferable Development Rights (TDR). The construction period for the minimum development area is projected to be three years.

ANDHRA LAUNCHED USD 7.45 BN URBAN INFRA ACCELERATION MISSION

The government of Andhra Pradesh launched INR 665.23 Bn (USD 7.45 Bn) urban infrastructure acceleration mission through Public–Private Partnership (PPP) to transform the state's cities into high-growth, future-ready economic hubs. The Municipal Administration & Urban Development (MA&UD) Department has projected an investment requirement of INR 665.23 Bn (USD 7.45 Bn) by 2029 across 12 priority sectors -- including smart water systems, modern transit corridors, integrated mobility, sustainable housing, and next-generation urban utilities excluding Amaravati's capital city development.

Andhra Pradesh will prioritise development of five smart cities with deep IoT integration, 2,500 km of upgraded urban road networks, 15 new urban transit systems and statewide adoption of green building norms targeting 40% higher energy efficiency. The state aims to attract INR 350 Bn (USD 3.92 Bn) in Foreign Direct Investment (FDI) into eight proposed economic zones by deploying innovative financing models, technology-driven governance, and structured PPP frameworks.

MAHA METRO FLOATED TENDERS FOR FIVE THANE RING METRO STATIONS ON 6 KM STRETCH

The Nagpur-based Maharashtra Metro Railway Corporation Limited (Maha Metro), executing the Internal Ring Metro Railway Project (IRMRP) in Thane, floated tenders for the construction of five elevated stations, with a target of early completion of work and possible partial operations of services on this route. The project is slated to be operational by 2029.

Once completed, the 29 km route — 26 km elevated and the remainder underground is expected to reshape mobility by connecting distant neighbourhoods with Mumbai and Kalyan through Metro Lines 4 and 5. Trains are planned to operate every 15 minutes, with projected ridership of 8.72 lakh passengers per day by 2045.

The execution of a 6 km stretch, possibly covering five stations including Dongripada, Vijay Nagari, Waghbil, Waterfront, and Patlipada stations, could be completed and made operational first. The route will have 22 stations, of which two-the new and old Thane railway stations-will be constructed underground. A sixth station at Manpada or Kashinath Ghanekar could also be included depending on land availability. The INR 122 Bn (USD 1.36 Bn) project will receive joint state-centre funding, along with revenue from station naming rights, asset monetisation and value-capture financing.

MAHARASHTRA APPROVED CATH LABS IN 11 MEDICAL COLLEGES UNDER PPP MODEL

In a major boost to public healthcare infrastructure, the Maharashtra government approved the establishment of Cardiac Catheterization Laboratories (Cath Labs) in 11 government medical colleges. The project will be implemented under a Public-Private Partnership (PPP) model to ensure timely and specialised cardiac treatment during emergencies. Once operational, the Cath lab at G.T. Hospital is expected to significantly reduce the patient load on major civic-run hospitals such as J.J., Nair, KEM, and Sion, providing faster access to cardiac care for patients in South Mumbai and nearby areas. The new lab will feature advanced medical equipment, including an anaesthesia workstation, echo machine, and ACT device, enabling complex cardiac procedures such as angiography and angioplasty to be performed efficiently.

Under the PPP framework, the private partner will be responsible for investing in and installing the medical equipment, while the government will provide infrastructure support, including space, electricity, water, and oxygen supply. The partnership agreement will remain valid for 15 years, with the possibility of an extension of up to five years subject to state approval.

Cath labs will be established at the following medical colleges: G.T. Government Medical College (Mumbai), Swami Ramanand Teerth GMC (Ambajogai), Bhausaheb Hire GMC (Dhule), GMC (Nagpur), Dr Shankarrao Chavan GMC (Nanded), GMC (Gondia), GMC (Miraj), GMC (Palghar), Chhatrapati Sambhaji Maharaj GMC (Satara), Vasantrao Naik GMC (Yavatmal) and B.J. GMC (Pune).

CPP INVESTMENTS, INDOSPACE ACQUIRED SIX LOGISTICS PARKS IN USD 300 MN DEAL

Canada Pension Plan Investment Board (CPP Investments) and IndoSpace announced the acquisition of six industrial and logistics parks valued at INR 30 Bn (USD 300 Mn) through their joint venture, IndoSpace Core. Established in 2017, IndoSpace Core is dedicated to acquiring and developing logistics facilities across India, and this latest transaction cements its position as the country’s largest operator of stabilized industrial and logistics real estate.

CPP Investments will commit INR 14 Bn (USD 217 Mn) to fund the acquisition, reinforcing its majority stake of 93% in IndoSpace Core. The six assets collectively span 380 acres with a leasable area of approximately nine Mn sq. ft., strategically located in India’s key logistics hubs — Bengaluru, Chennai, Delhi, Mumbai, and Pune.

NMC INVITED BIDS FOR MULTI-LEVEL CAR PARKING PROJECT

The Nashik Municipal Corporation (NMC) re-invited bids for its significant multi-level car parking project at Raviwar Karanja following a limited response during the initial tendering process. The proposed facility, which is estimated to cost approximately INR 300 Mn (USD 3.6 Mn) will be constructed under the Public-Private Partnership (PPP) model, specifically utilizing Design, Build, Finance, Operate, and Transfer (DBFOT) arrangement.

Raviwar Karanja functions as a key market hub, adjacent to high-traffic areas like Main Road, MG Road, Shalimar, Kapad Market, and Saraf Bazaar, where heavy vehicular movement is common throughout the day. The current lack of adequate parking options frequently results in significant traffic issues on the narrow local roads. The new car park is planned for the site of the renowned Yashwant Mandai building, which was recently demolished after a structural audit deemed it unsafe. The selected agency will be awarded a 30-year concession period to design, build, finance, and operate the facility before handing it back to the corporation.

CENTRE APPROVED FOUR NEW JHARKHAND MEDICAL COLLEGES, UNDER PPP MODEL

In a major boost to the healthcare and education sectors in Jharkhand, the central government gave its approval for four new medical colleges in the state under the Public-Private Partnership (PPP) model. The approval was granted under the ‘Government of India’s Scheme for Establishment of Medical Colleges in PPP Mode,’ aimed at expanding medical education and improving healthcare infrastructure across underserved regions of India.

The Centre approved the establishment of medical colleges in the four districts -- Khunti (50 MBBS seats), Jamtara (100 MBBS seats), Dhanbad (100 MBBS seats) and Giridih (100 MBBS seats). Each new institution will include a teaching hospital, bringing both medical education opportunities and better healthcare services to local communities. These projects will be implemented under the Viability Gap Funding (VGF) sub-schemes administered by the DEA, Ministry of Finance. This PPP approach is expected to attract private investment and accelerate infrastructure development while ensuring quality standards and shared accountability.

UTTAR PRADESH CLEARED 38 PRIVATE LOGISTICS AND WAREHOUSING PROJECTS WORTH USD 313 MN TO STRENGTHEN INDUSTRIAL ECOSYSTEM

The Uttar Pradesh government approved 38 private logistics and warehousing projects worth INR 26 Bn (USD 313 Mn) across key cities including Lucknow, Ghaziabad, Greater Noida and Rampur. The projects fall under the UP Warehousing and Logistics Policy 2022, which aims to develop a robust logistics network across all 75 districts by promoting multi-modal logistics hubs, warehousing clusters, cold storage facilities, and distribution centres. The policy also provides a range of incentives, including tax exemptions and financial support, to attract private and institutional investors.

The projects will come in Lucknow, Ghaziabad, Greater Noida, Rampur and other cities. To ensure effective monitoring, five projects with a cumulative investment of INR 4 Bn (USD 44.40 Mn) have been assigned unique identity markers to track their progress. UPSIDA is also focusing on expanding industrial land banks and equipping them with modern infrastructure to create “plug-and-play” manufacturing zones for investors.

TCS SECURED USD 1 BN INVESTMENT FROM TPG TO ACCELERATE AI DATA CENTER BUSINESS HYPERVAULT

Tata Consultancy Services (TCS), a global leader in IT services, consulting, and business solutions, entered into a strategic partnership with TPG, a leading global alternative asset management firm to support the growth of its AI data center business, HyperVault. This investment will support HyperVault’s GW-scale AI-ready infrastructure build and aligns with TCS’ plan to create AI-ready data centers with capacity in excess of a GW over the next few years. This partnership marks a significant milestone in TCS’ ambition to become the largest AI-led technology services company.

TCS’ HyperVault will be funded through a mix of equity from TCS and TPG, and debt. Both partners combined, will commit to invest up to INR 180 Bn (USD 1.9 Bn) over the next few years. Out of the total commitment of up to INR 180 Bn (USD 1.9 Bn), TPG will invest up to INR 88.2 Bn (USD 979.02 Mn) and is envisaged to have final shareholding between 27.5% and 49% in HyperVault. Bringing in TPG as a strategic investment partner will help TCS drive stronger returns to its shareholders, reduce its capital outlay, and create long-term value for the data center platform.

TPG’s investment in HyperVault is being facilitated through TPG Rise Climate and its Global South Initiative, a private equity strategy launched in partnership with ALTÉRRA. Additionally, TPG is also partnering through its Asia Real Estate business, marking an important milestone for the platform in India.

DECEMBER 2025

ANDHRA PRADESH APPROVED USD 57.6 MN PPP PLAN TO UPGRADE URBAN ROADS

The Andhra Pradesh government approved the first phase of its City Roads Improvement Program (CRIP), committing INR 4.78 Bn (USD 57.6 Mn) to overhaul key urban corridors in Visakhapatnam and Vijayawada under a long-term, performance-linked Public-Private Partnership (PPP) model. Administrative sanctions have been accorded for projects worth INR 3.06 Bn (USD 37.07 Mn) in Visakhapatnam and INR 1.71 Bn (USD 20 Mn) in Vijayawada, covering a combined length of 110 km of priority city roads.

CRIP has been designed to address chronic urban road failures such as repeated re-laying, weak junction design, inadequate drainage, and poor maintenance accountability. The programme follows the Design-Build-Finance-Operate-Transfer (DBFOT) Hybrid Annuity Model, under which contractors will be responsible not only for construction but also for operations and maintenance over a 10-year period. Under the model, 40% of the project costs will be paid during the 12-month construction phase against certified milestones, while the remaining 60% will be released through semi-annual annuity payments over the maintenance period.

NMC INVITED BIDS FOR SETTING UP MEETING HUB IN TAPOVAN

The Nashik Municipal Corporation (NMC) initiated a significant Public-Private Partnership (PPP) project for the development of a Meetings, Incentives, Conferences and Exhibition (MICE) hub at Tapovan. Valued at INR 2.20 Bn (USD 24.42 Mn), the project is structured under the Design, Build, Finance, Operate, and Transfer (DBFOT) model. A key incentive for the corporation is the financial gain, as the project is projected to generate INR 20 Mn (USD 241,000) in annual revenue for the NMC without any required financial outlay from their side. The designated site for this development is a 94-acre parcel of land at Tapovan, which is historically reserved for Sadhugram during Simhastha Kumbh Mela.

The project will feature sustainable, modular, and temporary infrastructure, such as domes and pavilions, designed to host national and international events. The NMC is seeking agencies to develop the hub under a Public-Private Partnership (PPP) model on a leasehold basis. The selected agency will be responsible for financing, designing, constructing, operating, and maintaining the hub for a period of 30 years. However, the site will be handed back to NMC for one year every 12 years to facilitate Kumbh Mela preparations.

KARNATAKA INVITED BIDS TO PRIVATISE BERTHS AT KARWAR, MANGALORE AND MALPE PORTS UNDER PPP MODEL

The Karnataka government invited bids to privatise four cargo berths located at Karwar, Mangalore and Malpe ports, shifting key cargo handling facilities along the state's coastline to a Public-Private Partnership (PPP) model of operation. The tender covers berths at Karwar, Old Mangalore (city side), Old Mangalore (Bengre side), and Malpe. These will be awarded to private firms on a Renovate, Operate, Maintain and Transfer (ROMT) model.

The private entity quoting the highest royalty per ton of cargo handled at the berths will be awarded the deal for 30 years for the Old Mangalore and Malpe berths and 15 years for the Karwar berth. The introduction of the PPP model is aimed at modernising port infrastructure, improving cargo-handling efficiency and creating a more sustainable revenue framework for the Karnataka Maritime Board (KMB). The model is also expected to facilitate the adoption of advanced technology and improve long-term operational reliability. The initiative will boost coastal shipping, attract private investment, expand employment opportunities and support allied sectors such as tourism and fisheries.

ADB APPROVED USD 240 MN LOAN FOR CHENNAI METRO EXPANSION IN INDIA

The Asian Development Bank (ADB) approved a USD 240 Mn loan—the second tranche of the Chennai Metro Rail Investment Project—to support the expansion of the metro rail network and provide cleaner, safer, and more reliable urban transport across the Chennai Metropolitan Area, India. This tranche is part of ADB’s USD 780 Mn multi tranche financing facility for the project, approved in 2022, and follows the initial USD 350 Mn loan under the first tranche. The new financing will support key sections of metro lines 3, 4, and 5, covering 20 kilometers of elevated and underground corridors and 18 new stations with universal access features and disaster-resilient infrastructure to keep passengers and services safe during extreme weather events.

Under tranche 2, ADB will fund civil and system works for metro line 3’s elevated section (Sholinganallur–SIPCOT-2), line 4’s underground section (Lighthouse–Kodambakkam), and key system components for line 5, including power, traction, and telecommunications. The tranche will also support upgrades to multimodal interchange areas to ensure smoother transfers between metro, buses, bicycles, and other last-mile transport options. Beyond infrastructure, the project will enhance inclusive station features, improve travel safety for women and vulnerable users, and support measures to boost non-fare revenues for the long-term financial sustainability of the metro rail system.

INDIAN RAILWAYS JOINS GREEN TECH LEAGUE WITH FIRST HYDROGEN TRAIN

Indian Railways has marked a major milestone in its journey towards clean and sustainable mobility by completing the manufacturing of its first hydrogen-powered train-set, which will be operated on a pilot basis. Executed in accordance with specifications laid down by the Research, Design and Standards Organization (RDSO), the project is aimed at showcasing the viability, safety and operational performance of hydrogen-powered train technology across the Indian railway network. To facilitate the operation of the hydrogen-powered train, a dedicated hydrogen generation plant has been planned at Jind. At this facility, hydrogen is being produced through the electrolysis process, which is a crucial component of green hydrogen generation, thereby aligning the project closely with India’s broader clean energy and decarbonisation objectives.

Entirely designed and developed within the country, the hydrogen train-set highlights Indian Railways’ continued emphasis on the Atmanirbhar Bharat vision. Currently, it holds the distinction of being the world’s longest hydrogen-powered train-set, with a total of 10 coaches, and is also the most powerful hydrogen train operating on a broad gauge platform, delivering an overall power output of 2,400 kW. The train-set consists of two Driving Power Cars (DPCs), each rated at 1,200 kW, along with eight passenger coaches. Among its key advantages is the fact that it produces zero carbon dioxide emissions, with water vapour being the only emission, representing a significant advancement in the adoption of next-generation fuel technology by Indian Railways.

The hydrogen train project is expected to provide valuable operational and technical insights for Indian Railways, helping assess the long-term viability of hydrogen traction under Indian conditions. Experience from the pilot is likely to shape future expansion of hydrogen-powered trains, particularly on non-electrified routes, while building indigenous expertise in hydrogen technology.

NISE AND TOYOTA KIRLOSKAR MOTOR SIGN MOU TO ADVANCE GREEN HYDROGEN MOBILITY IN INDIA

The National Institute of Solar Energy (NISE) and Toyota Kirloskar Motor (TKM) have signed a memorandum of understanding (MoU) to accelerate the development of green hydrogen mobility in India. The partnership will support India’s National Green Hydrogen Mission by enabling real-world testing of Fuel-Cell Electric Vehicles (FCEVs) under a wide range of Indian conditions, including climate, traffic patterns, driving behaviour and fuel quality.

Under the MoU, NISE will conduct a detailed assessment of the Mirai across India’s varied road and climate conditions, including heat, dust, heavy traffic and changing terrain. The two-year testing period will provide essential insights for expanding hydrogen mobility nationwide while building awareness and technical capability among industry, academia and policymakers. Hydrogen fuel-cell vehicles are clean, quiet and emission-free, releasing only water, and noted that fuel-cell technology is increasingly used in transport and stationary power systems worldwide.

The Toyota ‘Mirai’, a second-generation hydrogen fuel-cell electric vehicle (FCEV), produces electricity through a chemical reaction between hydrogen and oxygen, emitting only water vapors as a by-product. With a driving range of approximately 650 km and a refueling time of under five minutes, it is among the world’s most advanced and efficient zero-emission mobility solutions.

List of Key Transactions - Q4 2025

Source: YOG INFRA analysis

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