India approves $2.2bn of road PPPs

The Public Private Partnership Approval Committee has given the green light to six new highways across India worth a combined $2.2bn. India has one of the world's largest roads refurbishment programmes said to total $50bn when completed.

India’s Public Private Partnership Approval Committee (PPPAC), a unit of the country’s Ministry of Finance, has approved six new highway projects to be procured as public-private partnerships (PPPs).

The approved projects, worth close to 9,774 crores (€1.6 billion; $2.2 billion) include:

– The six laning of the Kishangarth-Udaipur-Ahmedabad section of the National Highway (NH) 79A, NH 79 and NH 76 in Rajasthan and Gujarat. The toll road project will be procured on a build-operate-transfer (BOT) basis and is worth 5,387 crore.

– The four laning of the Lucknow-Sultanpur section of NH 56 in the State of Uttar Pradesh (UP), a tolled BOT contract amounting to 1,013 crore.

– The four laning of the Angul-Sambalpur section of NH 42 on a design, build, finance, operate and transfer (DBFOT) basis. The toll road contract is worth 1,220 crore and is located in the State of Orissa.

– The two/four laning of Birmitrapur to Barkote section of NH 23, in the State of Orissa, a DBFOT tolled contract worth 778 crore

–  The four laning with a paved shoulder of the Bhopal to Biaora section of NH 12, in the State of Madhya Pradesh (MP), a project worth 704 crore.

– And finally, the four laning of Rewa to the MP/UP border of NH 7, a close to 671 crore, tolled DBFOT contract. 

India’s roads refurbishment programme is one of the world’s largest PPP programmes in procurement and is estimated to total $50 billion once it is completed. The roads programme has attracted attention from some of the biggest names in the infrastructure industry. 

In late May, Morgan Stanley Infrastructure Partners, the $4 billion infrastructure fund managed by investment bank Morgan Stanley, entered into a joint venture with the concessions arm of Spanish infrastructure group Isolux Corsan to invest in the Indian transport sector.

To find out more about the Indian infrastructure opportunity, make sure you read Infrastructure Investor's India country briefing and attend the Infrastructure Investor: India Forum, taking place on 3rd November in Mumbai.