Top Infrastructure Projects To Checkout In 2023
India is one of the fastest-growing economies in the world and has witnessed tremendous growth in its infrastructure sector. The government of India has identified infrastructure as one of the key drivers for economic development and has taken several steps to boost investments in the sector. This has led to a surge in government-backed infrastructure projects that are aimed at modernizing India’s infrastructure and improving the quality of life for its citizens.
In this article, we will discuss the upcoming government infrastructure projects in India and the benefits they provide. We will also discuss the challenges faced by these projects and the impact they will have on real estate developers, government contractors, real estate brokers and agents.
Infrastructure Development In India 2023 & Beyond
India’s infrastructure sector has been witnessing a surge in investments over the past few years. The government of India has been introducing many initiatives to promote investment in the sector, such as Make in India, Smart Cities and Infrastructure Development Finance Corporation (IDFC). These initiatives have helped to increase investment in various segments of infrastructure such as roads, railways, energy, water and sanitation.
The development of infrastructure is important as it provides numerous economic, social and environmental benefits. It helps to increase GDP growth, create job opportunities, improve trade and investment opportunities, provide better connectivity and accessibility, improve healthcare facilities, and reduce pollution levels.
Overview Of Government Infrastructure Projects In India
The forecast for India’s infrastructure during the following ten years is promising. It is filled with alluring government initiatives and a backlog of large projects that are backed by a sizable amount of capital and financing. India is a significant market for construction equipment producers and developers with an emphasis on constructing more sustainable constructions employing greener materials and technology, as well as a growing need for more sophisticated equipment.
The government has made infrastructure development a top priority, and it is expected to play a key role in achieving its goal of building a $5 trillion economy by 2025. To achieve its $5 trillion economic plan by 2025, the country must invest $4.5 trillion in infrastructure development through 2030, according to the Department of Economic Affairs, GoI.
Several government-backed infrastructure projects have been announced by the Indian government over the past few years. Some of these projects include the Bharatmala Pariyojana, Narmada Valley Development Project, Chenab River Railway Bridge, Delhi Metro Industrial Corridor, Mumbai Trans Harbour Link, Inland WaterWays Development Project, Navi Mumbai International Project and Zoji-la and Z-Morh Tunnel Project. These projects are aimed at modernizing India’s infrastructure and improving the quality of life for its citizens.
A Sneak Peak into Infrastructure Development Projects of 2023
Bharatmala Priyojana
With a projected budget of USD 130 billion, the Bharatmala Project proposes to build or upgrade nearly 34,800 kilometres of national highways and border roads to provide road connectivity throughout the nation. As part of the project, national highways, bridges, flyovers, bypasses, ring roads, elevated corridors, tunnels, and overpasses will be built to improve India’s overall connectivity, particularly in the Northeastern regions.
Narmada Valley Development Project
The massive USD 30 billion Narmada Valley Development (NVD) Project is designed to manage water resources in the Narmada Valley River by building a network of canals and more than 3,000 dams in the river basin to produce energy and improve the water system for drinking and cultivation. The NVD project includes the Sardar Sarovar Dam, which is intended to be a 1,450 MW hydroelectric project dam.
Delhi-Mumbai Industrial Corridor (DMIC)
By establishing logistics hubs and industrial zones, including ports, airports, highways, and power plants in addition to schools and hospitals, the initiative seeks to encourage economic growth and industrialization along the Delhi-Mumbai freight corridor.
The 1,483-kilometer-long DMIC project, with a USD 90 billion budget, runs from Delhi to Mumbai via Haryana, Rajasthan, Gujarat, and Maharashtra. The project also intends to provide employment possibilities and greatly increase the nation’s GDP. It is expected to be completed by 2024.
Mumbai Trans Harbour Link
With a massive budget of USD 2.2 billion, the Mumbai Trans Harbour Link (MTHL) aims to link the eastern end of the Mumbai-Pune Expressway with the western end of the Coastal Road, which is still under development. The Sea Link Motorway bridge road is 21.8 kilometres long, has 6 lanes, and can accommodate 70,000–80,000 vehicles per year. It is estimated to be completed by December 2023 as recently announced by CM Eknath Shinde.
Chenab River Railway Bridge
To connect Kashmir Valley with the rest of India, the Udhampur-Srinagar-Baramulla Rail Link project includes the 1.3 km long Chenab River Railway Bridge. The bridge is a joint venture between three engineering firms, namely Afcons Infrastructure (India), VSL India, and Ultra Construction and Engineering Company from South Korea, with a USD 92 million budget. The overall bridge was completed in August 2022 but it is expected to open to the rail traffic by December 2023 or Early 2024.
Inland Development Waterways Project
With an investment of USD 600 million and technical support from the World Bank, the development of inland waterways as a component of strategic infrastructure seeks to build 111 National Waterways in India. By March 2023, the project is anticipated to be finished. The waterways will make it simpler for ships and commodities to move. The expansion of inland waterways, in the opinion of the Indian government, may contribute to the country having zero carbon emissions by 2070.
Navi Mumbai International Airport
Navi Mumbai International Airport is the second International airport after Chhatrapati Shivaji International Airport. The project ventured into the Public Private Partnership model at USD 600 Million. A Special Purpose Vehicle (SPV) was formed for this Airport. It is expected to be in operation by the second quarter of 2024.
Zoji-la & Z-Morh Tunnel Project
The Zoji-la & Z-Morh tunnels are located on the Leh-Srinagar highway. These are two important tunnels that are built in two-lane, bi-directional, single-tube tunnels and they will provide all-weather access to the road and reduce the time between Ladakh and Kashmir to 15 minutes which at present is 3 hours.
The construction will be over by 2025 and will help in reducing the time between the Union Territories. It is implemented on an EPC contract basis by the operator National Highway and Infrastructure Development Corporation Limited (NHIDCL).
Few Other Infrastructure Projects by the Indian Government
The Delhi-Mumbai Expressway is a 1,350 km long, 8 lanes wide, access-controlled expressway that connects Mumbai with New Delhi, the nation’s capital of India. This project also includes the Vadodara-Mumbai Expressway, which is still under construction.
PM Narendra Modi formally launched the Sohna-Dausa portion of the Delhi-Mumbai Expressway on February 12, 2023, making it easier for people to travel between Delhi and Jaipur. The stretch has reduced the travel time from the National Capital to Jaipur from five hours to three or three and a half.
With a length of 1,386 kilometres, the Delhi-Mumbai Expressway is the longest motorway in India. Delhi, Haryana, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra are the six states it will pass through. It would connect significant cities including Kota, Indore, Jaipur, Bhopal, Vadodara, and Surat, and feature over 40 key interchanges. It is expected to be completed by December 2023 or Early 2024.
In the Indian state of Uttar Pradesh, the Ganga Highway is a 594 km long, 6-lane wide (and perhaps 8-lane wide) greenfield motorway that is currently under development. Phase 1 will link Judapur Dandu village on NH-19 in Allahabad district with Bijauli village on NH-334 in the Meerut district. On December 18, 2021, in Shahjahanpur, Prime Minister Narendra Modi laid the cornerstone for the Ganga Expressway. By 2024, the expressway should be finished.
Recently in June, Chief Minister Adityanath directed officials to expedite the construction of the Ganga Expressway, which will connect Meerut and Prayagraj. He set a strict deadline for its completion, aiming to make the expressway operational by December 2024.
The DFBOT Model is being implemented by the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), and IRB Infrastructure and Adani Enterprises will build and manage it. Yogi Adityanath presided over a meeting of the Uttar Pradesh Cabinet in Prayagraj.
Bengaluru Metro
Bengaluru Metro, usually referred to as Namma Metro, is a rapid transit system that runs across the Indian city of Bengaluru. It was South India’s first underground metro system when it opened. The Namma Metro comprises a combination of elevated, at-grade, and underground stops. As of March 2023, Namma Metro, which consists of 63 operational stations, includes 55 elevated stations, 8 underground stations, and 1 at-grade station. The system runs on standard-gauge tracks. The length of the system is 70 KM.
Few Schemes for The Development of Infrastructure Projects
Several plans have been launched in recent years to spur the sector’s expansion. These include Gati Shakti, the National Single Window System, the National Monetization Plan, and the National Infrastructure Pipeline (NSWS).
NIP is a collection of both greenfield and brownfield initiatives for social and economic infrastructure. It compiles information from the stakeholders and produces a coordinated list of projects that are either being proposed, conceptualised or are already in the works. Ensuring improved access to financial resources and better project management, which will reduce the likelihood of project delivery failure, is intended to increase investor trust.
The NIP estimates a total investment of 111 trillion rupees over five years, but in the wake of the pandemic, the state and central governments—who are responsible for covering half of this expense—might find it challenging to stick to the funding timeline.
While NIP and NMP examine projects separately, coordinated planning for smooth infra growth is also necessary. Gati Shakti, India’s master plan for multi-modal connectivity satisfies this need. To coordinate infrastructure development and provide last-mile connectivity amongst the various types of transportation, Gati Shakti brings together 16 ministries.
Disjointed planning and asynchronous implementation are problems that have plagued Indian governance for a very long time, and Gati Shakti seeks to fix them. This has encouraged the development of a logistics policy to ensure effective mobility and little disruption. To ensure maximum use, large-scale initiatives like Bharatmala and Sagaramala, seaports, dry ports, Special Economic Zones, etc. will now be designed in tandem.
Another strategic policy for putting NIP and NMP into action is the NSWS. Investors can submit applications for clearances on the NSWS website. It addresses the issue of approval delays and offers details on all necessary clearances. The gateway will probably be live this year. Together, Gati Shakti and NSWS offer a framework for putting NIP and NMP into practice. The extent of their success is still up for debate.
Benefits Of Government Infrastructure Projects
The development of infrastructure provides numerous economic, social and environmental benefits. On the economic front, it helps to increase GDP growth by stimulating private investments in sectors such as manufacturing, services and transport. It also helps to create job opportunities by providing employment opportunities for skilled labour. Furthermore, it improves trade and investment opportunities by improving connectivity between different parts of the country.
On the social front, it helps to improve healthcare facilities by providing better access to hospitals and health centres. It also helps to improve education facilities by providing better access to educational institutions across the country.
On the environmental front, it helps to reduce pollution levels by providing better public transport systems such as metro rails and buses. It also helps to improve water quality by providing better sewage treatment systems and better water supply systems.
Challenges Faced By Government Infrastructure Projects
The percentage of Public Private Partnership (PPP) projects in India’s national highways has decreased from 85% in 2012 to 2% now. While agreeing to assume part of the financial responsibility and risk, the government needs to actively involve the private sector in infrastructure development.
The risk of a counterparty is another difficulty. Potential investors may be discouraged if state and federal administrations occasionally breach agreements or abandon projects for political reasons.
Investors should be encouraged by changes being made to some policies, though. As an illustration, the revised public procurement policy now requires prompt payments, with 75% of running invoices due within one business day. The L1 rule, which required that contracts be awarded to the lowest bidder, has been repealed; currently, bidders who score well in terms of their technical aptitudes are given 30% of the weight. This represents a considerable change from earlier regulations.
Conclusion
In conclusion, government-backed infrastructure projects have tremendous potential for economic growth, job creation and improved quality of life for citizens across India. They provide numerous economic, social and environmental benefits that cannot be ignored or overlooked.
The upcoming government infrastructure projects will have a positive impact on real estate developers, government contractors, and real estate brokers/agents by increasing demand for real estate and providing them with more opportunities for business development. This can ultimately lead to increased economic development, improved quality of life for citizens across India and a brighter future for all.
