AN publicAtioN

February-March 2025 Vol. 19 No. 3 ` 300

Ports, Progress,
ProsPerity!
India must accelerate the transformation of its rapidly growing ports
and logistics sectors to establish itself as a global commercial hub.

INTERVIEWS: Gregory Goba-Ble, MOVIN Express & UPS;

Rajiv Mittal, VA Tech Wabag; Amit Sharma,
Tata Engineering Solutions....20, 36, 48
SHIPPING: Sailing on Fair Winds....28 Instant Subscription

BUDGET: Spurring Investments, Expanding Inclusion....40

GEOSPATIAL: Revolution at the Doorstep....52
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 Editor’s Note

There’s Logic in Logistics!

Despite a glorious maritime tradition
spanning thousands of years and the
advantage of a long coastline, it is only in
the last decade that India has begun
www.EquipmentIndia.com EDITORIAL
reclaiming its position as a global trading
Founder & Editor-In-Chief
hub. Currently 95 per cent of India’s
Pratap Padode
trade volume goes through ports, and the
BRAVING CHALLENGES 7,500 km coastline acts as a major enabler
Group Managing Editor
Falguni Padode With this March marking forthethe trade. The country has outlined a
closure
[email protected] of another financial year in the comprehensive
country, 150-point framework
Founder & Editor-in-Chief the world economy is reelingaimed under at a host
enhancing port infrastructure,
Pratap Padode of issues ranging from the slowdown thatlogistics efficiency, increasing
*Consulting Editor improving
hit the market for more thancoastal a year toandthe waterway traffic, and
Manish Pant Group Managing Editor
Falguni Padode coronavirus scare. The world economy
promoting sustainability and global collaboration. Additionally, India is planning
[email protected] which was trying to slowly recover from the
[email protected] $82 billion in investments for port projects by 2035. Union Minister Piyush Goyal
slowdown is now again hit by the coronavirus
For AdvertisementSenior Assistant Editor recently asserted that thatIndia has doubled
has spread across moreits port
than capacity
60 countries in the last decade and has
[email protected]
Sudheer Vathiyath significantly brought down theWhile
worldwide. turnaround
China istime trying ofhard
ships.
to However, he insisted that
more work is needed towards
combat strengthening
the difficult conditions, thenewlogistics
places ecosystem.
in
Sheetal For Advertisement In the logistics sector, India Iran,
South Korea, proposes
and Italyto reduce
are now costs
grippedfrom the current
[email protected]
[email protected] 13-14 per cent of GDP to avirus
by the global
which average
is making of 8theper cent of
revival by 2030, targeting a position
Mob: + 91 84228 74030 among the top 25 the world economy
countries. According hard.to Auto
a MessepartsStuttgart
productionIndiain China
and isEACestimated at
Delhi/Mumbai/Pune/Gujarat
International Consulting more study,
than $40 billion,
India’s with almost
logistics $20 billion
market exported
is expected toto otheratcountries.
grow a
Delhi- Sanjay Dipti : +91 84228 74027
Dominorate effects of component shortage
compound annual growth (CAGR) of 8.8 per cent. could be felt around
(Incidentally, ASAPP the Info
world.
[email protected] For example, Hyundai and Kia have
South
Global Group, publishers of Infrastructure Today, are stopped
organising several assembly lines
MultiLogistix in
Expo,
+91 84228 74040 Sudhir : +91 8422987406 Korea and Nissan has suspended its auto production in Japan. According
Conference & Awards on November 12-13, 2025, at Yashobhoomi, Delhi. Look for the
to ICRA, prolonged coronavirus outbreak could have negative impact on
Kolkata- Abhijit Subscription information on left hand side auto
the Indian page.) industry, as China accounts for 27 per cent of India’s auto
[email protected] While these forecasts are impressive, ouratcover story Typically,
explores autowhymakers
the country
[email protected] component imports, valued $4.8 billion. maintain
Tel: 022-24193000 must act swiftly on amultimodal
+91 8422874022 comfortableintegration,
four-six weeks infrastructure creation,if and
of inventory. However, policy in
the situation
Published by execution, with increased participation
China persists fromfew
for another state
weeks,governments.
potential supplyGrégory Gobawill
disruptions Blé,
Subscription ASAPP Info Global Services Pvt Ltd, Director of MOVIN Express become more and Headlikely. of UPS India,
However, Indian shares how facilities
production the dailyofgrowth of the
construction
[email protected], Navbharat Estates, Zakaria Indian economy inspires
Bunder Road, equipment
optimismownedabout by multinationals
its immense are potential.
already set For
for exports
India towith many
fully
Tel: 022-3103 3000 Sewri (West), Mumbai-400 015. leverage this growth,already established
its ports as export
and logistics hubs for
sector mustspecific models.
expand at aThese
similarcould take
pace.
Tel: 022-24193000. Fax: 022-2417 5734. some load off the demand of countries dependent on Chinese production
This issue also takes a comprehensive view of other critical aspects of the theme.
facilities in the short run.
Published by Branch Offices Amid growing international trade, ICRA’s Varun Gogia discusses the need for continued
Our March 2020 edition has taken up a couple of important topics in
• Delhi:
ASAPP Info Global Sevices Pvt Ltd Tel: 011-4656 1818. efforts to build efficiencies
the CoverinStory
India’s andport sector.
Feature Welcoming
sections. The Cover government
Story elaboratesinitiatives
on the to
• Bengaluru:
A - 303, Navbharat Estates Zakaria Bunder Tel: 080-40959611 / 40949259.
boost shipbuilding, Jagannarayan Padmanabhan and Parul Singhal Garg recommend
• Pune: Tel: 020-26162900 / 020-41201833.
importance of port infrastructure development for more cargo throughput
Road Sewri (West), Mumbai 400 015. a systemic overhauland to compete with China, to
thus new opportunities South Korea, andmarket
port equipment Japanin–India.
the big three of
According
• Chennai: 08422874017.
Tel: 022-3103 3000 global shipbuilding. to port equipment players, India needs to further improve the handling
*Responsible for selection of news under the InPRB
anAct., facilities at itsRajiv
insightful interaction, portsMittal,
to attract more cargo
Chairman & and
MD,bigger
VA Techvessels.
Wabag – the
*Responsible for selection of news under the PRB Withtechnology
the infrastructure development in the country picking up of
All rights reserved.While all efforts are made
Act. All rights reserved. While
world’s
to ensurethird-largest
that water company – emphasises the importance
the all efforts arepublished
made to is correct, EQUIPMENT INDIA
momentum,
ensure that the information
information
effective water management toequipment with new features
counter shortages. Mittaland technologies
also are being
urges political parties to
holdspublished is correct,
introduced. India needs operators with better knowledge and skill sets
to to
no responsibility for any unlikely errors that might
Infrastructure Today holdsoccur.
no responsibility for any adopt economically sustainable approaches rather than promising “free water”
unlikely errors that might have occurred. operate and maintain these machines. Currently there is already a huge gap
Printed and Published by Tarun Pal onconstituencies.
Behalf of ASAPP Meanwhile, in their deep-dive analysis, PwC India’s Mohammad Athar
Printed and PublishedInfo by Global
Tarun Services
Pal on Pvtbehalf PressProbal in the availability and actual requirement of certified trained equipment
(India) Pvt Ghosh explain
ASAPP Info Global Sevices PvtPlotLtd, No
Printed at M.B. and
Ltd, printed at Indigo how the Union Budget 2025-26 proposals could significantly
Ltd, 1C/716, Off Dadoji Konddeo Cross Road, operators in the country. Though the construction equipment OEMs are
Graphics, A-38, Shri RamBetween Industrial Estate,
Sussex and G.D.
Retiwala Ind. Estate,bolster
Byculla private-sector
(East), investments
conducting regular in training
infrastructure.
programmes to train the operators, there is
Ambekar Marg, Opp. Wadala Udyog Bhawan, 027. Mumbai
Mumbai-400
- 400 031 and PublishedEstates, from Zakaria
A-303, Bunder
and Published from A-303,In
Navbharat
an interview,
Navbharat Amit Sharma,
a more organised move CEO & needed
MD, Tata Consulting
to train Engineers,
and certify highlights
the operators. The the
Road, Sewri (West), Mumbai-400 015.
Estates, Zakaria BunderEditor: Road, Sewri (West),
Pratap Vijay Padode
importance of policy stability
Feature and
explains a long-term
more on skill vision to
development fully capitalise
and on
certification the
of China
qualified Plus
Mumbai-400 015. Editor: PratapSubject to Mumbai jurisdiction only. One strategy for growing
Vijay Padode. India’s
operators. Alsoinfrastructure
read other regular ecosystem.
columns for Among the emerging
more updates on the
Infrastructure Today is a member The of INS, Subjectontoproducts and projects infrastructure equipment industry.tools stand out. Kaushik Khona, MD
information technologies
on offer is reshaping infrastructure, geospatial
Mumbai jurisdiction only. The information
providedonfor products
being
and projects on offer isreadersbeing provided
the reference of readers. However,
for the India, CS Tech AI, explains Samoter
howhas already beenrollout
a thoughtful postponed from March
of geospatial to now Maycan
technology 16-20,
are cautioned to make inquiries and take their
reference of readers. However, readers
decisions are cautioned
on purchase revolutionise
or investment after consulting
due to coronavirus impact. However, Conexpo-Con/Agg in Las Vegas is on
experts construction, planning, and governance. Lastly, Nageshwar SV, Business
to make inquiries and take their
on thedecisions
subject.on purchase INDIA holdsHead
EQUIPMENT at Amara Raja’s
no responsibility schedule, on Marchvertical,
infrastructure 10-15, 2020. See you the
discusses there!
Hyderabad-based group’s
or investment after consulting experts
for any on the
decision subject.
taken by readers on the basis of information
Infrastructure Today holdsprovided
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herein. for any
ambitious goal of achieving fourfold growth in its infrastructure business – an
decision taken by readers on the basis of information achievement likely to redefine its image beyond batteries.
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Cover photo courtesy: Allcargo Logistics

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 3

MARCH 2020 3
 Contents Special Report
HSR Needs Fast Tracking 06
A new report from The Infravision Foundation calls for the
accelerated development of High-Speed Rail (HSR) to
address India’s growing transport challenges.

UNION BUDGET
Spurring Investments,
Expanding Inclusion40
Union Budget brings reformative measures to invigorate
private sector investments in the infrastructure sector.

Cover story Building the Growth Framework44

Seize the Movement, A substantial `11.21 trillion in the Union Budget for the
infrastructure sector underscores the government’s
Own the World 10 commitment to driving economic growth.
As India overhauls its infrastructure, the country has a unique
opportunity to cement itself as a global trade and logistics leader.
INTERACTION
Interaction “TCE eyes significant potential
“India’s daily growth fuels in the US market.” 48
Amit Sharma, CEO & MD, Tata Consulting Engineers
excitement for the future.”  20
Grégory Goba Blé, Director, MOVIN Express and Head, UPS India.
TECHNOLOGY
PORTS Geospatial: Revolution
at the Doorstep 52
World’s Emerging Ports of Call  24 The National Geospatial Mission’s successful
Amid a growing economy and rising trade with the world,
implementation can revolutionise construction, planning
India needs to continue building efficiencies in its port sector.
and governance.

SHIPPING INTERACTION
Sailing on Fair Winds 28 “By 2030, we anticipate a
While recent policy pronouncements bode well for the
Indian shipbuilding industry, more is required to ensure fourfold growth.” 55
its smooth sailing. Nageshwar SV, Associate Vice President and Business
Head, Amara Raja Infra

WAREHOUSING index
Warehousing for Viksit Bharat 32 Editor’s Page 03 Transport58
India must proactively develop warehousing solutions
Projects57 Energy59
based on innovation, sustainability, and future demand.
Scan this code with your
INTERACTION smartphone* to stay tuned to the
latest happenings in the world of
“Water scarcity isn’t the problem; infrastructure.
poor resource management is!”  36 * QR code application required.
Rajiv Mittal, Chairman & MD, VA Tech Wabag.

4 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 RIB-CX-Print-Ad-HL-v2-op.pdf 1 24/4/2024 10:04 AM

CM

MY

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CMY

K
 Special Report
High-Speed Rail

HSR Needs Fast Tracking

A new report from The Infravision Foundation calls for the
accelerated development of High-Speed Rail (HSR) to address
India’s growing transport challenges.
Chandigarh-Ludhiana-
Jalandhar-Amritsar; and
• Delhi-Agra-Lucknow-
Varanasi-Patna-Kolkata.
The first HSR project
between Ahmedabad and
Mumbai spans 508 km and
uses the standard gauge
seen in Japan’s Shinkansen.
Twelve stations, including
terminals, will be
part of the project. Since

Photo courtesy: NHSRCL

2017, Japan has supported
81 per cent of the project
cost, focusing on civil
infrastructure, station
development, traction, rolling
stock, signalling, telecom,
With every kilometre of High-Speed Rail and central monitoring systems adapted to
(HSR) providing about five times the capacity of Indian conditions.
conventional rail, developing HSR on the Golden The 55-km HSR route between Surat and
Quadrilateral and its diagonals—about 10,000 Bilimora is expected to be operational by July or
km—is expected to significantly boost rail August 2026. The 352-km Gujarat section
capacity and restore the status of rail as the (Sabarmati-Vapi) is likely to be commissioned
first choice for transportation. by August 2027. TIF recommends extending
This is a key insight of a new report by The this corridor to Delhi.
Infravision Foundation (TIF), which has There is a clear need to fast-track HSR in
prioritised four HSR corridors. The study, India, considering the growing demand for
authored by rail expert Dr Ramakrishnan TS, faster, more comfortable modes. Rail’s share in
explains the technological, societal, passenger transport has steadily declined while
environmental, and economic reasons for HSR road transport has surged, reaching 89 per cent
corridors and how to implement them. It says in 2010-11. Growth in national highways and
HSR is the best solution for Indian Railways to roads through methods like DBFOT, Annuity,
prioritise, considering declining passenger HAM, and IRC has removed supply constraints
traffic, rising congestion, and challenges in in road transport. Toll revenues and fuel cess
upgrading mixed-use infrastructure. also supported road funding. The rise of
multi-axle AC buses and personal cars further
Priority HSR corridors met demand.
The report highlights that these four All three modes were hit by COVID in
HSR corridors should be given priority and 2020-22. While they have since recovered, air
developed by 2035: travel rebounded faster, and rail lagged. Rail AC
• Delhi-Rewari-Jaipur-Ajmer-Jodhpur- travel nearly doubled from 2005-06 to 2022-23
Ahmedabad-(Mumbai); compared to non-AC. Railways responded by
• Chennai-Mumbai via Tirupati, Bengaluru, increasing AC coaches. In 2017-18, domestic
Tumkuru, Davangere, Dharwad, Belagavi, air travel surpassed AC rail travel, showing a
Kolhapur, Satara, Pune, Navi Mumbai, with a preference for faster options. Luxury buses,
spur to Goa; making up 70 per cent of omni-bus travel,
• Delhi-Sonipat-Panipat-Karnal-Ambala- doubled the AC rail passenger volume in 2024.

6 | Infrastructure Today | February-March 2025

 Special Report
High-Speed Rail

This shows that in the absence of rail AC before 2047, commemorating a hundred years
tickets, passengers rely on luxury coaches. of independence. A developed economy should
Proposed HSR fares are similar to these modes, have more than one option for fast travel. Air
but HSR and air offer faster end-to-end travel. travel is also expanding; however, it has
India’s progress with semi-HSR — through limitations in terms of coverage and a large
the Regional Rapid Transit System (RRTS) — footprint due to the associated modal shifts
aids transition to full HSR. The Delhi-Meerut and first- and last-mile transportation required
RRTS can reach 180 km/h on standard to access airports. HSR will fill this gap.
gauge, while 66 Vande Bharat trains can
achieve 180 km/h on broad gauge. These are Rail investments –
significant Atmanirbhar Bharat achievements. No significant impact
India runs the fourth-largest railway system Despite spending about `15 trillion till
with a 1,35,207 km track length. It’s the 2023-24, Indian Railways has been unable to
ninth-largest employer globally and second in show significant progress in its throughput, as
India, with over 1.2 million staff. But in terms of the spending has been too thinly spread across
rail connectivity per square km or per million too many areas. The Dedicated Freight
population, it lags countries like the US, Corridors, Mission Raftaar, and infrastructure
Germany, France, and Japan. augmentation through increased investment
HSR can help Indian Railways reclaim its have not yielded significant results.
place as the preferred transport option and stay The commissioning of the Eastern and
at the forefront of infrastructure development. Western Dedicated Freight Corridors (EDFC and
All classes except 3AC are heavily subsidised. If WDFC) has not yet brought notable relief from
1AC and 2AC passengers move to HSR, it could congestion on high-density corridors. About India’s progress
reduce subsidies. This shift would also free up two-thirds of Indian Railways’ train
space in mail/express trains for more sleeper infrastructure and human resources are used
with semi-HSR
and second-class coaches. for passenger services, while they generate — through the
In other countries, HSR has expanded urban only one-third of overall revenue. Conversely, Regional Rapid
clusters along routes. If some corridors attract freight services, which use about one-third of Transit System
large passenger volumes, operating companies the infrastructure and personnel, account for
could cross-subsidise conventional rail services two-thirds of revenue. The routes used by both (RRTS) — aids
and enhance quality. services are shared by mixed traffic. transition to
To meet the goal of doubling the average full HSR.
Time for targeted spending speed of goods trains and increasing the
The spending on HSR will be targeted average speed of Superfast, Mail, and
spending. The development of HSR will also Express trains by 25 km/h in five years, Indian
create opportunities to manufacture various Railways announced Mission Raftaar in 2016.
subsystems of HSR, thereby facilitating However, the implementation of this mission
Atmanirbhar Bharat. As India progresses has been extremely slow. In the 2016-17
towards becoming a developed nation, the Railway Budget, the Railways announced
value of time for all working individuals Mission Raftaar for two “high-density” corridors
becomes a critical factor in travel choices. HSR — HDN1 and HDN3 — to alleviate congestion.
will catalyse economic growth by substantially These corridors comprise just 4.17 per cent of
reducing end-to-end travel time. India has the Indian Railways’ 68,426 km route length.
option of developing subsequent HSR corridors Even if fully upgraded to 160 km/h, the
with indigenous technology, at least for some remaining high-density routes would
subsystems, thereby making the country remain unaddressed. Only about 500 km of
self-reliant in HSR technology. Travel by faster the 2,850 km of HDN1 and HDN3 have been
and more comfortable modes provides dignity upgraded to 160 km/h since the announcement
of travel to citizens, which is an integral of Mission Raftaar.
dimension of ease of living. A report by the Comptroller and Auditor
There are other significant economic General of India (CAG) tabled during the 2022
benefits. India imports about 87 per cent of its Budget session highlighted that Mission
crude oil requirements. The electric traction of Raftaar had not progressed. In response, the
HSR would reduce oil dependency significantly Railways stated that Mission Raftaar is not a
more than aviation turbine fuel used in aircraft. standalone project and that it is impossible to
HSR would contribute meaningfully towards quantify the total amount of money allocated or
India’s net-zero economy goal by 2070. spent on it. Furthermore, the Railways cited an
India aims to become a developed economy increase in the average goods train speed from

February-March 2025 | Infrastructure Today | 7

 Special Report
High-Speed Rail

23.7 km/h to 41.2 km/h from FY 2016-17 to travel to citizens, which is an integral part of
FY 2020-21. ease of living.
When the Railways cancelled numerous
passenger routes during the pandemic and Learning from the world
then resumed regular services, the average HSR pioneer countries have improved their
cargo train speed dropped to around 25 km/h. systems with the guiding principle of “one size
Both goals—doubling freight train speed and does not fit all”. Japan developed HSR on
increasing passenger train speeds by 25 standard gauge with wide-bodied coaches,
km/h—were not achieved. The average speed first at 210 km/h, then gradually improving to
of freight or mail/express trains did not change 350 km/h, while retaining narrow gauge for its
between the announcement of Mission Raftaar conventional rail network. Italy developed
in 2017 and 2024. “Pendolinos” (tilting trains) for both
Indian Railways admitted that Mission conventional and dedicated lines. France
Raftaar cannot function in “mission mode” due adopted a “mixed HSR” model.
to several barriers. For example, the speed of Germany used a dual strategy by upgrading
track sections with bridges cannot be increased conventional rail lines to 200 km/h and
if the bridges do not permit higher speeds as developing new HSR systems at 250 km/h or
required. It is clear that speed improvements more. Austria did likewise to reach speeds of
across the network will take significantly more 200-230 km/h. Spain developed gauge-
HSR is the best
time unless carried out at the same pace as switching coaches to achieve interoperability
solution for electrification. However, unlike electrification, between conventional Iberian gauge tracks
Indian Railways Mission Raftaar is a multidimensional project and new standard gauge HSR lines. It also
to prioritise, requiring large-scale coordination. developed tilting trains for speeds above
The increase in passenger services 200 km/h on conventional tracks.
considering has also not matched the level of investment European countries benefited from using
declining made. The route length increased by only about the same standard gauge, extending HSR
passenger 5 per cent (an additional 3,158 km) between services across borders. Depending on demand
traffic, rising 2014–15 and 2022-23. Although track length and speed restrictions, HSR in Europe runs
increased by about 16,574 km, it did not result between 200 km/h and 320 km/h, backed by
congestion, in a significant increase in passenger traffic — substantial R&D. New HSR corridors have been
and from 1,147 BPKM in 2014-15 to 959 BPKM in built with the latest technology, enabling lower
challenges 2022-23. The peak passenger traffic, during energy consumption. Even with reasonably
non-pandemic times, was in 2017-18 at addressed needs, these countries are investing
in upgrading
1,178 BPKM. in maglev and enhancing rolling stock speeds.
mixed-use Most of the funds were spent on works that The pioneer countries charted their own
infrastructure. had been backlogged for decades, such as course based on unique needs, capabilities, and
electrification, safety, infrastructure circumstances—India should do the same.
maintenance, additional lines on congested
routes, and procurement of new rolling stock. Conclusion
While such spending is essential to clear a HSR requires wide discussion among
massive infrastructure backlog, it has not yet policymakers, administrators, planners, and
yielded substantial outcomes. A strategic financiers. It presents a timely opportunity to
overview of the entire multifactor scenario revive rail as a low-carbon, long-distance
is necessary. transport solution. The Ministry of Railways’
The Infravision Foundation study also decarbonisation efforts need strategic
recommends setting up the National High- planning. The Infravision Foundation aims to
Speed Rail Technology Corporation with four foster this national debate. It’s time to fast-
key tasks: demonstrate a new HSR system at track HSR.
250 km/h, demonstrate an upgraded HSR
system at 200 km/h, develop tilting HSR trains ABOUT TIF
TIF is the only national-level advocacy organisation and
for speeds of 200 km/h, and radially align “think-and-do-tank” that is dedicated to the infrastructure sector
self-steering bogies for freight trains. in India, with particular interest in energy, transportation, water
India has the option of developing and sanitation, agri-infrastructure, social and economic
infrastructure and policy reform. TIF recommends credible,
subsequent HSR corridors with indigenous evidence-driven interventions by government and private sector
technology, at least for some subsystems, for boosting economic growth by investing in infrastructure. TIF
thereby making the country self-reliant in has focused attention on several subjects of national
importance, including rooftop solar, surety bonds, warehousing,
HSR technology. Travel by faster and more
compensatory afforestation, public transport, safe highways,
comfortable modes provides dignity of sustainability ratings and PPP in infra finance.

8 | Infrastructure Today | February-March 2025

The Infravision Foundation
Advocacy for transforming infrastructure
Who we are
The Infravision Foundation (TIF) is an advocacy thinktank dedicated to the infrastructure sector in India, with
particular interest in energy, transportation, water & sanitation, agri-infrastructure, social and economic
infrastructure.
The Foundation is committed to serving the national interest and harnessing the full development potential of
investments in infrastructure. Our efforts are directed at creating deep impact through advocacy that is
backed by credible evidence and expertise. We advocate for effective solutions at scale and the conducive
policy, finance and regulatory environment required to achieve transformation.
TIF collaborates with top rated institutions such as the IITs, IIMs and TERI to ensure that the best knowledge and
insight is informing its advocacy.

What we do
TIF’s work is focused on infrastructural study of the Jal Shakti Ministry’s water conservation, rural and
challenges of national importance. first ever national census of water urban infrastructure, transport,
We have recently published a report bodies contributed to refinements inclusive infrastructure,
on High Speed Rail to highlight the in the second census of water renewable energy and
significance of choosing HSR for bodies, which is ongoing. thought leadership. The
economic growth. Our study on the InfraKatha series, produced in
implementation of the CAMPA Fund TIF’s advocacy occurs in different partnership with the India
has highlighted the need for forms. In addition to publications Habitat Centre, New Delhi,
improvements. Our ‘Sooraj Se Rozgari’ and media outreach, TIF has also featured conversations
initiative to promote solar rooftops created the annual InfraShakti between experts from the
directly contributed to the creation of Awards and the monthly infrastructure sector and
Prime Minister's Surya Ghar Muft Bijli InfraKatha series. The first edition noted thought leaders from
Yojana. TIF worked closely with the of the InfraShakti awards was other walks of life. The
insurance regulator IRDAI to promote conducted in partnership with speakers included authors
surety bonds to replace bank NDTV in 2024. The same Devdutt Pattanaik and William
guarantees in infrastructure partnership will continue in 2025. Dalrymple, economists
implementation contracts, leading to The awards recognise the Sanjeev Sanyal and Montek
a surge in surety bonds issuances. excellent and impactful work of Singh Ahluwalia, and heritage
The recommendations from TIF’s individuals and institutions in hotelier Aman Nath.

Partnership
The Foundation is keen to hear from like-minded experts
and organisations.
Please drop us a line or call us if you have a suggestion
on how we can be more effective in achieving our vision.
We welcome partnerships and collaborations. www.theinfravisionfoundation.org

Think Infrastructure. Think The Infravision Foundation.

E-2261 Palam Vihar, Gurugram 112017 | Ph: 9810750745 | Email: [email protected]
 Ports & Logistics
Cover story

Seize the Movement,

Own the World
India stands at a transformative juncture in its ports and logistics journey. As
it overhauls its infrastructure, the country has a unique opportunity to
cement its position as a global trade and logistics leader, leveraging one of
the most ambitious infrastructure initiatives in the world, writes Manish Pant.
Unknown to most, some of the world’s changing. Thanks to heavily subsidised Krishi
finest fruits and vegetables grow in the Udan flights offering national and international
mineral-rich soil of India’s Northeast region. connectivity for agricultural produce, grapes,
However, until a few years ago, due to isolation oranges and pineapples from Manipur,
and inadequate transportation linkages, Meghalaya, and Mizoram now reach
thousands of tonnes of this organically grown supermarket shelves in the
produce rotted as farmers lacked storage Middle East and
facilities. Since 2020, things have been steadily Western Europe.

10 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Ports & Logistics
Cover story

“A key milestone has been the expansion of enhanced logistics infrastructure can deliver.
air cargo infrastructure, with the number of This modern resurgence reflects India’s
operational airports increasing from 74 in 2014 historical role as a global trade powerhouse.
to 159 in 2024, significantly boosting regional Between the 1st and 17th centuries CE, India
and international trade connectivity,” was among the world’s largest economies,
Ramanathan Rajamani, CEO, Air India SATS commanding nearly half the global GDP
(AISATS), a gateway and food solutions joint alongside China. Indian traders carried spices,
venture between national flag carrier Air India textiles, precious stones, and other items
and Singapore Airport Terminal Services, tells across seas in hardy wooden ships, leaving a
INFRASTRUCTURE TODAY. Similarly, with cultural imprint worldwide. Such was the
companies like Samsung and Apple demand for Indian goods that historian Pliny
establishing state-of-the-art assemblies in India the Elder, in 77 CE, lamented the drain of
and improved road, rail, and port connectivity, Roman gold due to this trade. Centuries of
the country has become the world’s second- invasions and colonisation eventually erased
largest mobile phone exporter. These this dominance, reducing India’s share of global
transformations show what an GDP to just 3 per cent by Independence.
The economic reforms of the 1990s
marked a turning point, reigniting
India’s journey toward becoming a
global logistics and
manufacturing hub.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 10A

 Ports & Logistics
Cover story

Ports & Shipping: India in the World

“There is money in water. Rapidly
Coastline Length 7,500 km
developing nations focus on building
inland waterways and sea lanes. This is Major Ports 13
the way forward!” Non-Major Ports 200
- Sarbananda Sonowal, Union Minister Total Cargo Capacity 2,400 MTPA
for Port, Shipping & Waterways Cargo Handled (2024) 819.22 MMT
Merchant Fleet 1,493
Maritime Trade Volume 95%
Maritime Trade Value 68%

“India remains at the cusp of economic Global Maritime Rank 16

growth, a centre for corporate expansion Source: MoPSW, IT Research
plans and a hub for trade given our
strategic geographical position. The
position, says Sanjeev Sanyal, Member of the
recently published DHL white paper titled Economic Advisory Council to the Prime
China Plus X: The New Global Supply Chain Minister (EAC-PM). “From an economic
highlights the growing importance of perspective, India is an island nation since our
multi-shoring strategies that go beyond big land borders aren’t trade-friendly. We don’t
the classic China Plus One philosophy trade anything with Pakistan, and though we do
and focus on diversifying production and supplier locations trade with China, we don’t trade with the part of
in several countries.” China with which we share a border. We trade
with eastern China, which is far away.
- RS Subramanian, Senior Vice President,
Therefore, we must think of ourselves as a
South Asia, DHL Express maritime country.” To seize this transformative
moment, India must decisively address
challenges and cement its status as a global
Speaking at the Maritime India Conference & trade and logistics powerhouse.
Expo in January, Sarbananda Sonowal,
Minister for Port, Shipping & Waterways, Ports & Shipping: Anchoring
remarked, “There is money in water. the Future
Rapidly developing nations focus on India’s ports and shipping industry is
building inland waterways and sea lanes. pivotal in driving the nation’s trade and
This is the way forward!” In the past decade, economic ambitions. Spanning a 7,500 km
India’s merchandise exports surged from coastline, the country has 13 major ports and
$311.4 billion in FY2014 to $437.10 billion in over 200 non-major ports. In FY2024, these
FY2024, according to Ministry of Commerce & ports managed around 820 million tonnes of
Industry data. Programmes like Make in India, cargo, per Ministry of Ports, Shipping &
Startup India, Production Linked Incentives, and Waterways (MoPSW) data. Notes minister
stimulus schemes for small and medium Sonowal, “India’s maritime sector has become a
enterprises (SMEs) have significantly expanded cornerstone of the country’s economic
the country’s manufacturing capacities. resurgence. India’s global standing has also
RS Subramanian, Senior Vice President for risen with nine Indian ports making it to the
South Asia, DHL Express, a division of global World Bank Container Port Performance Index
logistics conglomerate DHL Group, states, 2023, including Visakhapatnam ranking among
“India remains at the cusp of economic growth, the top 20 globally.”
a centre for corporate expansion plans and a India is the world's 16th largest maritime
hub for trade given our strategic geographical nation and holds a 30 per cent share in ship
position. The recently published DHL white recycling markets, placing it among the top five.
paper titled China Plus X: The New Global Supply It also ranks 18th in global shipping tonnage
Chain highlights the growing importance of and operates a merchant fleet of 1,493 vessels
multi-shoring strategies that go beyond the with a total capacity of 13 million gross
classic China Plus One philosophy and focus on tonnage (GT). The government measures to
diversifying production and supplier locations in bolster the sector include 100 per cent FDI in
several countries.” port development under the automatic route
Current geopolitics puts India in a unique and a ten-year tax holiday for enterprises in

10B | Infrastructure Today | February-March 2025

 Ports & Logistics
Cover story

Other Infrastructure
“From an economic perspective,
India is an island nation since our
big land borders aren’t trade-friendly.
We don’t trade anything with Pakistan,
and though we do trade with China, we National Railway Airports Waterways Industrial &
don’t trade with the part of China with Highways 69,181 km 159 111 Warehousing
which we share a border. We 146,145 km 25.6 mn sq ft
trade with eastern China, which is (Leased)
far away. Therefore, we must think of Source: Government Data, Industry, Colliers, IT Research
ourselves as a maritime country.”
- Sanjeev Sanyal, Member, Economic Advisory Council to the transshipment port at Galathea Bay in Great
Prime Minister Nicobar will reinforce India’s strategic role in
transshipment cargo, strengthening
connectivity with global trade routes.”
ports and inland waterways. Projects like the Sonowal also emphasises the focus on
Bharatmala Pariyojana aim to develop multi- digitalisation and sustainability to enhance
modal logistics parks (MMLPs), while the competitiveness. “The digitalisation and
ambitious Sagarmala Pariyojana, with six mechanisation of our ports have reduced
planned mega ports, has already completed container dwell time to three days and achieved
143 projects. Additionally, Maritime India Vision a turnaround time of 0.9 days, surpassing many
2030 outlines over 150 initiatives to redefine advanced countries.” Sustainability initiatives
the sector’s objectives. like the National Hydrogen Mission have seen
Key developments, such as the arrival of the ports such as Kandla, Paradip, and Tuticorin
first cargo ship in July last year at Vizhinjam being developed as green hydrogen hubs.
International Seaport – a public-private These efforts blend digital efficiency with
partnership (PPP) between the Adani Group ecological responsibility, positioning India as a
and the Kerala government for container leader in sustainable maritime development.
transshipment – demonstrate India’s growing Welcoming these initiatives, Maurits van
capabilities. Increased investments and Tol, Chief Executive, Catalyst Technologies, a
improved operational efficiency are expected to division of the UK-based $16.4 billion Johnson
strengthen the ports sector further. Sustainable Matthey group, highlights the significance of
domestic waterways and targeted converting hydrogen into ammonia or methanol
India's air cargo infrastructure upgrades strive to position India to enhance global trade. “Ammonia and
segment has
as a leader in maritime trade. Says Sonowal, methanol play dual roles as key tradable
surged with the
growth in “India is now entering an era of mega ports. The commodities and sustainable fuels for power
operational airports Vadhavan port in Maharashtra is set to become generation and shipping. Prioritising their
from 74 in 2014 to the country’s largest container port, designed to conversion from green hydrogen, with
159 in 2024. handle ultra-large vessels. Similarly, the careful attention to scalability and economic
feasibility, can significantly enhance India’s
capability to transport green hydrogen
efficiently and establish a strong position in
global energy markets.”
Expanding the role of Indian seaports in
global trade also requires enhanced
warehousing capacities. Stakeholders like
Anshul Singhal, Co-Founder & Managing
Director, Welspun One, a leading logistics park
developer, reiterate the enlargement of free

Merchandise Export Growth

Year Amount
FY2014 $314 Billion
FY2024 $437.1 Billion
Source: Ministry of Commerce and Industry

11B | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Ports & Logistics
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revamped Shipbuilding Financial Assistance

“Ammonia and methanol play dual Policy, with an outlay of `180.9 billion,
roles as key tradable commodities addressing cost disadvantages and enhancing
and sustainable fuels for power competitiveness. Additionally, the `250 billion
generation and shipping. Prioritising Maritime Development Fund has been
their conversion from green hydrogen, established to provide long-term financing, with
with careful attention to scalability and 49 per cent contributed by the government and
the remainder from private investors. A
economic feasibility, can significantly
landmark decision in this budget was the
enhance India's capability to transport inclusion of large ships as infrastructure assets
green hydrogen efficiently and establish under the harmonised master list, facilitating
a strong position in global energy markets.” access to low-cost, long-term financing crucial
- Maurits van Tol, Chief Executive, Catalyst Technologies for the sector. “This is a major step forward, as
it enables long-term financing for ships and
shipbuilding. Equally important, four maritime
laws are currently progressing through
“The upcoming SEZ (special economic Parliament, with a couple more in the pipeline,”
zone) reforms must prioritise port-based notes Sanyal. These reforms will modernise
and replace outdated legislation, aligning the
SEZs, strengthening exports amid
sector with contemporary needs.
evolving US trade policies and global However, bottlenecks such as port
supply chain shifts. Additionally, deeper congestion, complexities in land acquisition, the
berths, automated cargo handling, and limited availability of specialised warehousing
last-mile connectivity enhancements will infrastructure near ports, and regulatory
be critical for India to become a global hurdles causing approval delays continue to
logistics and manufacturing hub.” hinder efficiency. Asserts Singhal, “Port-based
- Anshul Singhal Co-Founder & Managing Director, industrial hubs are the way forward, enabling
faster turnaround times, reducing costs, and
Welspun One
improving competitiveness. To reinforce the
country’s status as a global trading hub, it must
accelerate investments in modern port
trade and warehousing zones (FTWZs) to infrastructure and integrated port-based
streamline operations with duty deferments warehousing, supported by proactive
and faster clearances. “The upcoming SEZ government and regulatory policies.”
(special economic zone) reforms must prioritise Although challenges like dispute resolution
port-based SEZs, strengthening exports amid delays persist, initiatives such as the Society for
evolving US trade policies and global supply the Affordable Resolution of Disputes (SAROD)-
chain shifts. Additionally, deeper berths, Ports mechanism, launched in 2020, aim to
automated cargo handling, and last-mile provide cost-effective and timely solutions,
connectivity enhancements will be critical for
India to become a global logistics and
manufacturing hub.” Such a structured
approach will improve efficiencies, attract
investment, and solidify the country’s role in
international trade.
India is equally committed to revitalising
its shipbuilding industry. EAC-PM’s Sanyal
regrets the nation’s past neglect of its
once-illustrious shipbuilding tradition, with
95 per cent of trade today being conducted
through foreign vessels. “We not only have a
long coastline, but we also have the know-how.
After all, we are building nuclear submarines
and aircraft carriers. We have the young people
required to weld these ships together, and we
have our internal demand.” Stakeholders eagerly await the Western Dedicated
The Union Budget 2025-26 has introduced Freight Corridor's completion, unlocking access to
measures to boost shipbuilding, including the India's key industrial hubs.

12 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Ports & Logistics
Cover story

Logistical Challenges “Additionally, leveraging India’s

• High Costs: Logistics costs in India rail infrastructure to increase its
range between 7.8-18% of GDP, with the share in the modal mix connects
higher estimates significantly exceeding demand to supply efficiently and
the global benchmark of 8%. These sustainably. The Indian Railways’ focus
figures vary based on think-tank and
on developing 23 new CRTs (Cargo Rail
government studies.
Terminals) will significantly expand the
• Fragmented Sector: Over 70% of
operations remain unorganised, causing
railway freight network.”
inefficiencies. - Adhendru Jain, Vice President,
• Infrastructure Bottlenecks: Poor port Rail & Inland Terminals, DP World Subcontinent
connectivity and warehousing facilities
disrupt smooth operations.
• Regulatory Complexities: Disjointed
policies and taxes create delays. “Road transport continues to dominate,
• Skilled Workforce Shortage: Limited making it harder to shift volumes to
training curtails adoption of advanced more cost-effective rail and waterway
technologies. options. To truly enhance supply chain
• Environmental Concerns: Heavy efficiency, we need better integration and
fossil fuel dependency increases the investment in logistics hubs.”
CO2 footprint.
- Nitin Behl, Regional Head for East &
Source: Industry, IT Research North India, Allcargo Terminals

particularly for PPP projects in major ports. The

framework’s effectiveness will become clearer Gati Shakti Master Plan has already
as more cases are resolved. identified 434 projects aimed at enhancing
logistics efficiency and reducing costs. Over
Fuelling Logistics for a New India 18,000 kilometres of highways have already
In any economy, logistics serves as the been constructed under Bharatmala. In
backbone of growth, connecting industries and addition, construction of MMLPs and [the
regions seamlessly. India’s logistics sector is Indian Railways'] Dedicated Freight Corridors
witnessing significant transformation, driven by (DFCs) also aim to reduce transit times and
technological advancements, infrastructure improve efficiency,” says DHL Express’
expansion, and global trade integration. The Subramanian. Launched in 2021, the PM Gati
COVID-19 pandemic accelerated e-commerce Shakti seeks to enhance multi-modal
growth, redefining logistics and intensifying the connectivity by integrating infrastructure
demand for last-mile delivery and warehousing. planning across various sectors. An initiative
Logistics companies, spurred by this shift, have under the programme facilitates the
adopted innovative, tech-driven solutions to collaborative development of 28 districts.
meet the rising need for faster, reliable services “These [districts] will become models for future
across road, rail, air, and water. development of India’s hinterland. Additionally,
While these advancements mark leveraging India’s rail infrastructure to increase
significant progress, the sector still faces its share in the modal mix connects demand to
critical challenges. In the last couple of years, supply efficiently and sustainably. The Indian
there has been intense debate on the actual Railways’ focus on developing 23 new CRTs
logistics cost as a percentage of GDP. While (Cargo Rail Terminals) will significantly expand
the Economic Survey 2022-23 pegs them at the railway freight network,” says says
14-18 per cent of the GDP, a joint study by the Adhendru Jain, Vice President, Rail & Inland
think-tank National Council of Applied Terminals, DP World Subcontinent, the
Economic Research (NCAER) and Department regional arm of DP World, a Dubai-based global
for Promotion of Industry and Internal Trade logistics leader.
(DPIIT) estimates them at 7.8-8.9 per cent, In addition to MoPSW developing
nearing global benchmarks of 8 per cent. Amid 13 MMLPs under the Sagarmala programme,
ongoing debate, efforts to rationalise logistics the Ministry of Road Transport & Highways is
costs focus on infrastructure upgrades, GST also developing 35 as part of the first phase of
reforms, and technology adoption. “The PM its Bharatmala programme. According to

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 15

 Ports & Logistics
Cover story

Enhancing Port Connectivity

“Green logistics initiatives, including Total Under
the electrification of trucking, carbon Mode
Projects
Completed
Development
credit incentives, and renewable energy- Port Rail 114 49 65
powered logistics parks, will drive long-
Port Road 152 26 126
term environmental benefits.”
Source: Sagarmala Pariyojana, MoPSW
- Ramanathan Rajamani, CEO, AISATS
of standardisation. The industry is equally
concerned about the mismatch between slow
infrastructure growth and the rapidly increasing
demand. “Road transport continues to
“Previously, finding developers for MMLP dominate, making it harder to shift volumes
projects was a rare occurrence. Now, to more cost-effective rail and waterway
we have a sizable pool of developers options. To truly enhance supply chain
efficiency, we need better integration and
eager to undertake these facilities
investment in logistics hubs,” says Nitin Behl,
due to significant demand growth. Regional Head East & North India, Allcargo
Consequently, alongside NHLM, Terminals, a specialised warehousing firm. He
increased participation from state stresses that more industrial corridors for
government entities is also anticipated.” logistics parks are needed in addition to
- Prakash Gaur, CEO, National Highway Logistics upgrading rail, waterways, and
Management Ltd cold storage to relieve pressure on roads and
create a more balanced, cost-efficient
logistics network. “This will help reduce supply
chain fragmentation, making storage and
Prakash Gaur, CEO, National Highway distribution more seamless. A unified digital
Logistics Management Ltd (NHLML), a platform providing real-time updates on road
subsidiary of the National Highways Authority conditions, congestion, and regulatory
of India (NHAI), “Five MMLPs are already under hurdles can optimise logistics planning and
implementation, three have reached the minimise delays.”
Automation at tendering stage, and three more – located in Achieving further cost reductions hinges on
Indian ports has Hyderabad, Patna, and Varanasi – will be accelerating multimodal integration, increasing
reduced container tendered shortly. We recently signed an MoU rail usage, and ensuring effective policy
dwell time to three
days and achieved a
with the Inland Waterways Authority of India for execution with greater involvement and
turnaround time of the Varanasi facility.” commitment from state governments.
0.9 days, With over 70 per cent of operations “Continued collaboration between industry
outperforming many unorganised, the logistics sector’s stakeholders and policymakers will be crucial in
advanced nations. fragmentation leads to inefficiencies and a lack addressing bottlenecks, improving multimodal
transport networks, and ensuring cost-effective,
sustainable logistics solutions,” emphasises
Subramanian. AISATS’ Rajamani highlights
further opportunities for efficiency and cost
optimisation. “Expediting the full
operationalisation of DFCs and expanding
MMLPs will play a crucial role in enhancing
freight movement,” he says, adding, “The Union
Budget 2025-26 has prioritised investments in
air cargo hubs, smart warehousing, and

Dedicated Freight Corridors

Project Length Completed
Eastern Dedicated 1,337 km 100%
Freight Corridor
Western Dedicated 1,506 km 93.2%
Freight Corridor

Source: DFCCIL

16 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

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 Ports & Logistics
Cover story

Multimodal Logistics Parks

“India’s diplomatic approach has been Programme Number
impressive, focusing on collaboration Sagarmala Pariyojana 13
and respect, which fosters business
Bharatmala Pariyojana 35
opportunities. Agreements between
Source: MoPSW
India, the Middle East, Europe, and
the US represent a fantastic
training programmes will ensure a workforce
opportunity to advocate for and facilitate
ready to meet the evolving needs of the
free trade. IMEC will benefit companies logistics industry,” avers Behl.
like ours, enabling us to support Beyond structural inefficiencies, given the
customers globally.” sector’s dependence on fossil fuels,
- Grégory Goba Blé, Director, environmental concerns pose another
MOVIN Express & Head, UPS India significant challenge. Sustainable practices like
green logistics corridors and renewable energy
adoption are critical for reducing supply chain
emissions. DP World’s Jain advocates for the
“The IMEC corridor will reduce logistics enhanced use of rail transport. “Compared to
expenses for both Indian exports and road transport, railways generate 65 per cent
less CO2 emissions for long-distance surface
imports once completed. Comprehensive
connectivity. Therefore, using railways for
project planning, including integrated
long-distance containerised freight movement
timelines and early risk mitigation, will will not only provide businesses with a secure
help avoid delays and cost overruns, and low-carbon transport option but also
ensuring the project’s completion within reduce traffic and congestion on roads.”
budget and on schedule.” Opines Rajamani, “Green logistics initiatives,
- Amit Goyal, Managing Director, South Asia, including the electrification of trucking,
Project Management Institute carbon credit incentives, and renewable
energy-powered logistics parks, will drive
long-term environmental benefits.”
multimodal connectivity, ensuring a more The AISATS logistics park at Bengaluru and the
seamless and efficient supply chain network.” upcoming multimodal cargo hub at Noida
In this regard, Gaur has some good news for International Airport exemplify sustainable,
stakeholders. “The MMLP sector is [currently] at tech-driven infrastructure.
a very nascent stage. With the development of
MMLPs by NHLML, prospective developers
have come forward to invest in them,
considering the growing demand.
Aligning with Global Standards:
Consequently, MMLPs are being developed by a 4 Proposed Laws
multi-stakeholder partnership in collaboration • Indian Ports Bill, 2025: Replaces the
with various [central] ministries and state 1908 Act, introducing stricter safety
governments on a PPP basis.” measures, pollution control, transparency
The National Logistics Policy (NLP) of 2022 in charges, dispute resolution, and
also promotes technology-led solutions. “ULIP enhanced security.
(Unified Logistics Interface Platform) has • Bills of Lading Bill, 2025: Modernises
streamlined the sector, enabling access to the 1856 Act by simplifying language,
logistics data across government systems on a reorganising provisions, and aligning with
single platform,” adds Subramanian. Other international shipping standards.
efforts, such as the Export Promotion Mission • Coastal Shipping Bill, 2025: Promotes
and BharatTradeNet – a unified platform for coastal shipping as an eco-friendly,
trade documentation and financing – also cost-effective alternative to reduce
facilitate international trade. Additionally, the dependence on road and rail transport.
adoption of AI, IoT, blockchain, and automation • Merchant Shipping Bill, 2025: Replaces
continues to revolutionise logistics, the 1958 Act to modernise ship
streamlining processes, reducing delays, and registration, crew welfare, and maritime
promoting transparency. However, a skilled safety, aligning with global conventions.
workforce shortage limits the adoption of
advanced technologies. “Investing in dedicated Source: Government Data, IT Research

18 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Ports & Logistics
Cover story

IMEC: The New Spice Route

As India addresses its domestic logistics “Connecting India via Saudi Arabia,
challenges, it simultaneously positions itself as Israel, and Europe presents immense
a key player in global trade through ambitious opportunities, though it requires a
initiatives like IMEC. First proposed at the 2023 delicate balancing act. Bypassing
G20 meeting in New Delhi, IMEC is set to Iran’s [Chabahar] port shifts focus to
redefine global trade by creating opportunities
new territories, enhancing prospects
for international collaboration. This ambitious
for export hubs and trade in goods and
multi-trillion-dollar infrastructure project
integrates rail, road, and shipping networks to services. With recent agreements, such
strengthen India’s economic ties with the as the one with the UAE for rupee trade,
Middle East and Europe. As an alternative to Indian firms – particularly those in power, aluminium, and oil
traditional trade routes, IMEC underscores and gas – are finding favour in the Middle East.”
India’s rising global prominence by proposing - Amit Sharma, CEO & MD, Tata Consulting Engineers
faster, cost-effective, and sustainable
connectivity. It not only challenges China’s $1
trillion Belt and Road Initiative (BRI) – also
referred to as the One Belt, One Road (OBOR)
project – but also seeks to revive the legendary “The vision of interconnected
Spice Route on a much grander scale. infrastructure, epitomised by slogans
Grégory Goba Blé, Director, MOVIN Express like ‘One World, One Grid,’ will become a
and Head, UPS India, is enthusiastic about reality through IMEC. By bolstering our
IMEC’s potential. “India’s diplomatic approach domestic and international presence,
has been impressive, focusing on collaboration we are well-positioned to contribute to
and respect, which fosters business
mega-projects like it.”
opportunities. Agreements between India, the
Middle East, Europe, and the US represent a - Desh Raj Pathak, COO, Jakson Infra
fantastic opportunity to advocate for and
facilitate free trade.” Supported by the brisk
growth in the Indian logistics sector, the Although still in its early stages, several
company has developed 16 air and ground Indian firms already look forward to the project.
hubs across major commercial centres in a Amit Sharma, CEO & MD, Tata Consulting
little under three years since its inception. Engineers, the country’s largest private-sector
“IMEC will benefit companies like ours, enabling engineering and project consultancy, observes,
us to support customers globally. With a large “Connecting India via Saudi Arabia, Israel, and
Indian diaspora worldwide, there’s significant Europe presents immense opportunities,
potential for adding value, addressing demand, though it requires a delicate balancing act.
and offering solutions.” Bypassing Iran’s [Chabahar] port shifts
While the project’s benefits are immense, its focus to new territories, enhancing prospects
success depends on overcoming key for export hubs and trade in goods and
challenges related to execution and adherence services. With recent agreements, such as the
to global standards. It envisions a robust one with the UAE for rupee trade, Indian
transportation network spanning rail, road, and firms – particularly those in power, aluminium,
sea routes. Amit Goyal, Managing Director, and oil and gas – are finding favour in the
South Asia, Project Management Institute Middle East.” Others, like the Noida-based
(PMI), a global not-for-profit body to promote Jakson Group, which specialises in engineering,
project management profession, notes, “The procurement, and consultancy, are already
spin-off advantages to the Indian economy will preparing. Desh Raj Pathak, COO, Jakson Infra,
manifest in many ways. Besides strengthening declares, “The vision of interconnected
India’s status as a logistics hub for the Middle infrastructure, epitomised by slogans like ‘One
East and Western Europe, the IMEC corridor will World, One Grid,’ will become a reality through
reduce logistics expenses for Indian exports IMEC. By bolstering our domestic and
and imports once completed.” He emphasises international presence, we are well-positioned
the importance of comprehensive project to contribute to mega-projects like it.”
planning, including integrated timelines and Ultimately, the success of IMEC hinges on
early risk mitigation to avoid delays and cost India’s ability to establish a robust logistics and
overruns, ensuring the project’s completion ports framework at home, ensuring its global
within budget and on schedule. ambitions are realised.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 19

 Ports & Logistics
Interaction

“India’s daily growth fuels

excitement for the future.”
Regulatory changes, improvement in transportation infrastructure
and enhanced collaborations with other countries make India an
exciting logistics opportunity, asserts Grégory Goba Blé, Director,
MOVIN Express and Head of UPS in India. Overtly bullish about the
proposed India-Middle East-Europe Economic Corridor, he tells
INFRASTRUCTURE TODAY’s Manish Pant in this exclusive interview
that cross-border trades would continue, notwithstanding the
ongoing geopolitical realignments. Edited excerpts.

MOVIN is recognised as India’s

fastest-growing logistics services
provider. What are the key elements of
your growth strategy?
MOVIN, a joint venture between UPS and
InterGlobe, began business three years ago
with the vision of helping India develop
infrastructure and become a global leader.
Our strategy focuses on technology, service
excellence, and people. We leverage
government initiatives to increase digitalisation
and ease of doing business, guarantee reliable
and time-definite deliveries with a money-back
guarantee, and have a dedicated learning and
development team to train and certify
our partners. Both UPS and MOVIN operate
with clockwork precision, especially in sectors
like healthcare.
Grégory Goba Blé, Director, MOVIN Express
On a lighter note, in your over-three- and Head, UPS India
decade career with UPS, you started as a
legionnaire and are now a general. That’s operating plans. We aim for excellence and
an evolution as well! understand the importance of evolving with the
Yes, exactly! It’s indeed a personal evolution. market, especially in critical sectors.
MOVIN’s DNA embodies reliability and
perfection. Transparency is key, both within the What makes you optimistic about the
company and with customers. We prioritise opportunities in India’s logistics sector?
reality, ensuring transparency in our services I have been actively engaged with this great
and commitments. We leverage technology to country for the last five years. I witness India’s
provide real-time updates on shipments. Trust growth daily through my experiences. The
is another critical element; we view our evolution in market movement is remarkable,
relationships with customers as partnerships, with many startups emerging. I spend a lot of
knowing that the fast-moving Indian business time in the field with my team at MOVIN and
ecosystem requires agility and flexibility. Our with customers, observing this growth
approach is to offer current solutions while firsthand. This makes me hopeful. Additionally,
being open to special requirements and new significant regulatory changes like GST and

20 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Ports & Logistics
Interaction

demonetisation signal that the country has a

strategy and vision. These changes, coupled
with infrastructure improvements and
government targets, have created a conducive
environment for growth. In a recent address,
Prime Minister Narendra Modi outlined
impressive regulatory changes and a vision.
The government’s regular communication with
us fosters a great relationship. India is aligning
itself for growth, and the trust from other
countries further supports this. The growth is
already happening, as is evident in our volumes
and customer interactions. I’m excited about
the future because I see a strong, well-managed
ecosystem driving this growth. Overall, I’m
pleased with the opportunities in India’s
logistics sector. premium products. Although MOVIN does In just three years
not engage in quick commerce, we observe since its inception in
May 2022, MOVIN
its impact, such as services like Blinkit. We Express has
“India is aligning itself for focus on meeting the speed requirements of established 16
premium customers who value reliability. We strategically located
growth, and the trust from primarily concentrate on the B2B segment, air and ground hubs
other countries further believing we can make a significant difference across major
there. By remaining focused on delivering what commercial centers.
supports this. The growth Pictured here is the
matters to our customers, we aim to excel in
is already happening, as is our chosen areas and contribute to India’s
company's ground
hub in Ahmedabad
evident in our volumes and logistics sector growth. (Gujarat).
customer interactions. I’m
Also, when you launched in 2022, one
excited about the future couldn’t help but notice that the name
because I see a strong, MOVIN and its branding seemed to
well-managed ecosystem signify a high-end lifestyle brand rather
than a B2B parcel service.
driving this growth.” Yes! There has been a lot of research on
this. MOVIN is about movement, speed, agility,
and supporting India’s growth. Our branding
The logistics business requires reflects these values. The colours are related to
stakeholders to take a long-term view. our parent companies, UPS and InterGlobe,
Therefore, which sectors do you see as showing respect for them. We recognised that
the key growth drivers in the medium and some logistics companies were dated, adhering
long-term? to old methods, while India needed change and
We are focusing on the premium side, which evolution. MOVIN embodies this spirit of
we believe is our area of expertise. Specific progress. Our LinkedIn page showcases our
verticals include healthcare, which is a priority commitment to providing movement to Indian
for MOVIN and UPS globally due to our businesses. We are excited about this growth
integrated network and reliability. India’s and aim to bring something new to the market
significant production of drugs and vaccines while respecting competition and the
makes healthcare a crucial sector for us. We ecosystem. With experience in diverse global
recently opened a cross-docking facility for markets, I can attest that India is unique and
healthcare in Hyderabad. Another critical sector full of energy. This motivates us to aspire for
is aerospace, given the growing passenger progress, backed by a supportive population. I
requirements and the need for reliability, speed, miss this energy whenever I return to France.
and transparency. The automotive sector is We don’t want to offer what is already available.
booming, particularly with the rising demand As a company operating in over 200 countries,
for new vehicles and EVs (electric vehicles). UPS brings global expertise and adaptability to
Retail, especially the premium segment, is India’s dynamic market. This market is unique
another area we are targeting, with an in a good way, and we are excited to contribute
increasing demand for fast delivery of to its growth and evolution.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 21

 Ports & Logistics
Interaction

interface) and OCR (optical character

MOVIN Express: Quick Deliveries recognition), scan invoices and create shipping
labels automatically. We continually upgrade our
• Launch: May 26, 2022, as a joint venture between UPS and
systems, ensuring our technology evolves and
InterGlobe Enterprises.
adapts to our customers’ needs. This
• Rapid Expansion: Within seven months of its launch, the company commitment to leveraging technology positions
expanded its presence to 35 cities, covering over 3,000 pin codes.
MOVIN to lead in the Indian logistics sector.
• Air and Ground Hubs: Established 16 strategically located air and
ground hubs across major commercial centres like Chennai, How well is the National Logistics Policy
Hyderabad, Ahmedabad, Kolkata, Pune, Mumbai, Bangalore, and (NLP) of 2022 delivering on its stated
Delhi NCR. goals of improving logistics services,
• Customer Base: Serving over 2,500 customers through seamless digitalisation, human resource
logistics solutions. development, and process reform?
• Sustainability Initiatives: Deploys over 20 EVs for first and The NLP aims to improve efficiency across
last-mile deliveries in major metros, reducing 17 tons of CO2 the logistics sector through various approaches.
emissions annually. Reducing logistics costs is crucial, and efficiency
• Facility Space: MOVIN now operates with a total facility space of will help achieve this. Throughout my career at
nearly 300,000 sq. ft., enabling efficient handling and distribution UPS, I have seen how technology and skilled
of goods. personnel are essential for cost reduction. The
• Integration with UPS: Has synergistic joint facilities with UPS in NLP emphasises technology and human
Hyderabad, Pune and Kolkata, enhancing their operational resource development. Enhancing the skills of
capabilities. logistics workers leads to greater efficiency and
• Technology Commitment: Invested significantly in developing a reliability, which in turn lowers costs.
robust technology stack to support its logistics operations. Inconsistencies in logistics operations create
• Service Focus: Guarantees reliable, time-definite deliveries with a defects and additional costs, so addressing
money-back guarantee if commitments are not met. these issues is vital. Paperless processes also
• Employee Growth: Grown its workforce to nearly 500 people across play a significant role in cost reduction by
its offices and hubs in India. minimising manual intervention and errors. The
NLP encapsulates these elements, making it a
Source: Company, IT Research promising direction for the industry. At MOVIN,
our goal is to support the NLP’s objectives by
MOVIN is also creating one of the biggest reducing the cost per package through improved
technology stacks in Indian logistics. Tell processes and technology. Collaboration
us something about that initiative. between the government, companies like ours,
UPS has spent more than $1 billion on and competitors will further reduce logistics
technology improvements over the last decade. costs in India.
It recognised early on that technology is
essential for excellence, and this has been true Does that mean the cost of moving goods
for us. It's not just about educating our people has started declining?
but also integrating advanced technology. For Definitely! The government is pushing
MOVIN, we aimed to develop a technology initiatives that are aiding this decline. New
stack that brings reliability and transparency. companies and startups in India are also
Often, there’s a lack of visibility in domestic contributing significantly by challenging the
shipping – you don’t know when the package status quo and demanding efficiency. They push
will arrive or what’s happening with it. So, from us to find innovative solutions to reduce logistics
day one, we focused on providing as much costs. Startups need cash flow and prefer low
transparency as possible, good or bad, but at logistics costs to invest more in marketing and
least it’s clear. We implemented a write-free other areas. Over the past five years, I’ve
solution for shipping documentation, reducing observed a noticeable evolution in this sector.
manual errors and risks. This digitalised system However, there is still more work to be done.
allows seamless integration of billing and Infrastructure improvements, such as better
shipping processes. We also focus on roads and railways, are crucial for further cost
educating our customers, especially in tier-2 reduction. These infrastructure initiatives, driven
and -3 cities, to facilitate digitalisation. Our by the government, are making a significant
approach is to make logistics as easy and impact. The NLP is a testament to the
reliable as possible, allowing young government’s commitment to this cause.
entrepreneurs to focus on their businesses. Our Though we are not fully there yet, the dynamic is
tools, like API (application programming positive, and the progress is evident. With

22 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Ports & Logistics
Interaction

continued efforts and collaboration between

the government and industry players, we can
expect further reductions in logistics costs.

How are emerging technologies

such as AI (artificial intelligence)
transforming the logistics business,
or is this just another upgrade?
That’s a good one! AI is now essential for
the logistics business. UPS and MOVIN are
heavily investing in AI as part of our technology
advancements. We are already leveraging AI

like ours support customers and The company

participate in global supply chains. currently operates
with approximately
The large Indian diaspora worldwide
300,000 sq. ft. of
also creates demand where we can facility space.
add value. Facilitating trade by
removing barriers is crucial for the
logistics industry’s development
globally and in India. Despite current
MOVIN Express maintains a fleet of 20 EVs for
first and last-mile deliveries in pursuit of protectionist trends, I believe that
becoming a sustainable logistics player. promoting free trade is the right approach to
support the logistics sector's growth.
and see it as a crucial aspect of our future
technology development. AI brings additional Will the ongoing realignment of global
value, but it must be combined with the skills of supply chains and growing calls for
our people. Technology is fantastic, but it’s protectionism in various countries have
useless if you don’t know how to use it. We an impact on the global logistics sector
focus on both technology and skill and India?
development. Our learning and development The ongoing realignment of global supply
team uses AI to help our people improve their chains and growing calls for protectionism are
skills. AI is also used for customer benefits, geopolitical issues. I always look at the
creating a seamless experience. AI is integral to long-term, as short-term changes can lead to
our ecosystem, and we will continue to develop frequent strategy shifts. There is a noticeable
and incorporate it into our tools and solutions. shift in observing trends and long-term
decisions, including reshoring production from
How do you see the proposed India- China to places like Mexico and India.
Middle East-Europe Economic Corridor Companies like Apple are moving production to
(IMEC) boosting India’s position in the India, positioning it diplomatically and in trade.
global supply chains? Despite protectionist tendencies, trade has
I’m excited about IMEC because it aligns always been a constant. The world has always
with my UPS experience in providing global traded and will continue to trade. If there are
coverage. India’s diplomatic approach is some pockets of issues here and there, we will
impressive, focusing on collaboration and find ways to keep trading because that’s what
respect. PM Modi’s recent visits to France and human beings do. India’s positive decisions and
the US highlight this strategy. The agreements diplomatic efforts will attract investment and
between India, the Middle East, Europe, and the trade. The growth I see in my companies
US present fantastic opportunities for free confirms this. Facilitating trade and reducing
trade, which we advocate at UPS and MOVIN. barriers is crucial for the logistics industry's
This diplomatic approach will help companies development globally and in India.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 23

 Ports

World’s Emerging Ports of Call

Amid a growing economy and rising trade with the world, India
needs to sustain the momentum in building efficiencies in its
port sector, argues Varun Gogia.

India’s 7,500 km coastline boasts 12 major products moderating from around 35 per cent
ports administered by the central government. to around 29 per cent, and that of cargo rising
Another 200 non-major ports are administered from 16 to 20 per cent. The cargo growth has
by the state governments, of which 65 are been supported by economic activity and
currently functional. The port infrastructure improving hinterland infrastructure, which has
has been a key enabler of economic growth supported healthy volume growth at the ports.
and trade in India, with nearly 90 per cent of While the major ports continue to handle a
export-import trade volumes flowing through larger share of the cargo, the non-major ports’
it. With the country witnessing healthy market share has increased by nearly 400 bps
economic activity over the last decade and throughout FY2015-24. The gain in market
growing trade, cargo volumes handled at share has been enabled by the improving
Indian ports have expanded at a CAGR of hinterland connectivity for these ports and the
nearly 4.7 per cent throughout FY2014-24. freedom to set tariffs. Similarly, the terminals
The cargo profiles handled at Indian ports at the major ports awarded post-November
comprise petroleum products, including crude 2021 have also been extended this incentive.
oil, LNG, and LPG, which account for nearly Meanwhile, the central government is also
29 per cent, followed by coal (25 per cent) and actively working to provide terminals
containers (20 per cent), with iron ore, operational before November 2021 at the
fertiliser, and other cargo contributing the major ports with the freedom to set tariffs.
remaining 25 per cent in FY2024. The resulting competitive landscape will
Over the past decade, the cargo profile further close the gap between major and
handled at the ports has changed with the non-major ports.
share of petroleum, oil and lubricants (POL) India’s port sector has invested

24 | Infrastructure Today | February-March 2025

 Ports

Exhibit 1: Cargo Volumes Handled at Indian Ports* Exhibit 2: Cargo Volumes at Major and Non-Major Ports*
100% 900 70%
90% 224 206 226 238 230 199 800 65%
80% 95 113 93 100 136 83 700 60%
600 54% 55% 55%
70% 53% 53% 53%
247 249 279 286 317 260 55%
60% 500

MMT
50%
50% 400
305 277 292 367 45%
399 289 47% 47% 47%
40% 300 46% 45% 45%
30% 200 40%
448 403 428 442 457 342
20% 100 35%

10% 0 30%
FY20 FY21 FY22 FY23 FY24 9M FY25
0%
FY20 FY21 FY22 FY23 FY24 9M FY2025
Major Port Non-Major Port
POL Coal Containers Iron Ore Others %Market Share-Non-Major Ports-RHS %Market Share-Non-Major Ports-RHS

*In million metric tonne (MMT) *In MMT

Source: Ministry of Ports, Shipping & Waterways (MoPSW), ICRA Research Source: Ministry of Ports, Shipping & Waterways (MoPSW), ICRA Research

significantly in improving operational efficiency quality, with timeliness and the ability to offer
and expanding services provided to vessels. competitively-priced international shipments
This is expected to continue under the improving. Over the past few years, both the
Sagarmala Project. Under this initiative, nearly central government and the private sector
`320.66 billion has already been invested in have invested significantly in port
port modernisation projects till March 2024, infrastructure. Besides, driven by notable
with another `756.50 billion worth of projects expansions in warehousing, rail and road
under various stages of implementation. Under infrastructure, the logistics sector has also
the Sagarmala project and the PM Gati Shakti seen heightened investment.
plan, the government is working to link major Under the Maritime India Vision (MIV)
ports with the hinterland for seamless 2030, cargo handled at the ports is expected
connectivity. This would result in faster to double over FY2020 levels by FY2030,
evacuation of cargo to improve overall necessitating sizeable investments. Port
efficiency and reduce logistics costs. capacity is projected to rise 1.7x to 2x by
FY2030, and under MIV 2047, the cargo-
Improved performance handling capacity at ports is likely to reach
Per the Logistics Performance Index (LPI) nearly 10,000 million metric tonne per annum
report published by the World Bank, India’s rank (MMTPA). To achieve this growth, significant
improved to 38 in CY2023 vis-à-vis 44 in investments are being made in new projects,
CY2018. The country progressed across most such as the recent commissioning of deep
of the parameters evaluated through 2018-23. draft seaports at Vizhinjam (Kerala) and the
The most notable growth areas are large container port under construction at
infrastructure and logistics competence and Vadhawan (Maharashtra), to widen

Exhibit 3: India’s Logistics Performance Index Score Exhibit 4: India’s Liner Shipping Connectivity Index
400

3.50 3.50 3.60 3.50 3.40

3.32 350
3.20 3.21 3.13
2.96 3.00 2.91 300

250

200

150

100

50
Customs Infrastructure International Logistics Timeliness Tracking and
Shipments Competence Traceability 0
and Quality
Q4 2018
Q3 2019
Q1 2006
Q4 2006
Q3 2007
Q2 2008
Q1 2009
Q4 2009
Q3 2010
Q2 2011
Q1 2012
Q4 2012
Q3 2013
Q2 2014
Q1 2015
Q4 2015
Q3 2016
Q2 2017
Q1 2018

Q2 2020
Q1 2021
Q4 2021
Q3 2022
Q2 2023
Q1 2024

2018 2023

Source: World Bank, ICRA Research Source: UNCTAD, ICRA Research

February-March 2025 | Infrastructure Today | 25

 Ports

Exhibit 5: Projects Planned Under Sagarmala (In `Billion) Exhibit 6: Sizeable Cargo Growth Expected Under MIV 2030

183
2600

1573

76 80
68
58
46 685 680 620
32 457 399 440
317 317
9 83 145
1

Port Modernisation Port Connectivity Port-Led Industrialisation POL Coal Container Iron Ore Others Total
Completed Under Implementation Under development FY2024 FY2030

Source: MoPSW, ICRA Research Source: MoPSW, MIV 2030, ICRA Research

capabilities for handling the ever-increasing the overall logistics cost, thus enhancing
size of shipping vessels. Other major ports are economic competitiveness.
also adding capacity entirely under the landlord
port model through the public-private Challenges ahoy!
partnership (PPP) route, tendering out terminals Despite significant improvements, several
at non-major ports, and developing new ports issues continue to hamper the Indian ports’
like Murbe (Maharashtra) and Keni (Karnataka). progress on performance and cargo flows.
These efforts will further enable the Indian Currently, most ports in India have inadequate
port sector to handle the expected increase in draft to handle large-sized vessels. This results
cargo volumes. in cargo from Indian ports first travelling to a
Additionally, with the increasing trans-shipment terminal like Colombo, where
digitalisation underway across the logistics the cargo is loaded onto the mother ships. This
value chain in the country and the adds to shipping costs and time, limiting the
mechanisation of port operations, Indian ports competitiveness of Indian exports.
are becoming more efficient and catching up The Indian port sector also faces delays in
with their global counterparts. With continued dispute resolution among various stakeholders
investments in infrastructure upgrades, Indian and port terminal operators. While several
ports should be able to close the gap with processes have been put in place, numerous
global ports in terms of operating parameters arbitrations and issues still await resolution.
to attract more traffic. Furthermore, with the Additionally, underdeveloped cargo-handling
Indian economy expected to grow at a healthy infrastructure in the hinterland and port
pace, it will be imperative for them to improve connectivity continue to hamper overall
their performance to substantially bring down logistics costs and cargo flows. Over the last

Exhibit 7: Cargo Volumes at Indian Ports Exhibit 8: Cargo Handled in 9MFY2025 with YoY Change

1800
400
1600 4%
350
1400 3.1% YoY Growth -3%
300 11%
1200
250 12%
1000
MMT

200
800
150
600 -16%
100
400 -7%
50
200
0
0 POL Coal Container Fertiliser & Iron Ore Others
FY19 FY20 FY21 FY22 FY23 FY24 9M 9M FRM
FY2024 FY2025
9M FY2024 9M FY2025 % growth

Source: ICRA Research, IPA, MoPSW Source: ICRA Research, IPA, MoPSW

26 | Infrastructure Today | February-March 2025

 Ports

few years, rail connectivity between ports and

the hinterland has significantly improved
through the Eastern and Western Dedicated
Freight Corridors (DFCs). However, further
development is needed through high-speed
road corridors for easy evacuation. On the
regulatory front, the central government has
accorded market-based tariff-setting freedom
to terminals set up post-November 2021 at the
major ports under the Major Port Authorities
Act (MPAA), 2021. The central government is
also working towards providing the same
freedom to terminals operational pre-November
2021 to create a level playing field. Additionally,
it is also looking at certain reforms in the Model
Concession Agreement 2021 for PPP in major
ports to make it more amenable to the private
sector, addressing issues related to royalty
payment on minimum guaranteed cargo (MGC),
termination norms for not meeting MGC for
three years, and indexation of royalty to the
wholesale price index (WPI).

The Indian port

sector continued to
witness stable performance
with overall cargo
volumes growing
by nearly 7.5 per cent
Y-o-Y in FY2024.
In the first nine months of the current As digitalisation
fiscal, overall cargo volumes witnessed a tepid expands across the
logistics value
Growth to remain stable growth of around 2.9 per cent Y-o-Y. This was
chain and port
The Indian port sector continued to witness because of 11 per cent Y-o-Y growth in the operations become
stable performance with overall cargo volumes container cargo volumes and a 4 per cent increasingly
growing by nearly 7.5 per cent YoY in FY2024. Y-o-Y growth in the POL volumes handled at mechanised, Indian
The volume growth was underpinned by a the ports. The increase in these two segments ports are boosting
robust container volume growth of around was partially offset by a moderation in the coal efficiency and
11 per cent Y-o-Y followed by 8.7 per cent Y-o-Y volumes (-3.4 per cent Y-o-Y) lower steadily catching
up with global
growth in the coal cargo volumes handled at fertiliser (-7 per cent Y-o-Y) and iron ore
standards.
the ports. The other segments like iron ore volumes (-16 per cent Y-o-Y). ICRA expects the
witnessed a 36 per cent YoY surge followed by port volumes to grow around 3-5 per cent
POL products, which saw a 3.5 per cent Y-o-Y Y-o-Y in FY2025, driven largely by the container
growth. The container volumes grew owing to and the POL segments, with other key
the rising containerisation of cargo in the segments expected to witness moderation.
country. The growth in coal volumes was driven
by the government directive for blending
About the author:
imported coal to meet the power demand,
particularly in the summer and monsoon Varun Gogia, Associate Vice
months. The iron ore volumes handled at the President and Sector Head,
ports surged owing to strong demand from ICRA.
China and the base effect of FY2023, wherein
export duty levied on the export of iron ore had
led to lower exports.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 27

 Shipping

Sailing on Fair Winds

While recent policy pronouncements bode well for the Indian
shipbuilding industry, more is required to ensure its smooth
sailing in highly competitive international waters, say
Jagannarayan Padmanabhan and Parul Singhal Garg.

India’s Maritime Amrit Kaal Vision 2047 output, while our share is 0.05 per cent. Ship
aims to strengthen the country’s shipbuilding repair also has strong potential, considering
industry as part of a larger goal of transition to nearly 10 per cent of global trade passes within
a manufacturing-led economy. By encouraging 300 nautical miles of India’s coastline. Here,
the building of vessels for coastal, inland and too, China, the Middle East and Singapore have
global trade, the government is looking to cornered the global market, whereas India’s
reduce dependency on foreign ships and share is less than 1 per cent. The minuscule
enhance self-reliance in maritime transport. share, however, is not due to a lack of
However, there is much work to be done to necessary know-how or capability. The country
ensure smooth sailing. has demonstrated strong shipbuilding skills,
Currently, India ranks 20th in global with several shipyards delivering high-quality
shipbuilding. For perspective, China, South ships. The malaise runs deeper.
Korea and Japan together account for Shipbuilders in India have been treading
85 per cent share of the annual shipbuilding water due to several issues, including a lack of

28 | Infrastructure Today | February-March 2025

 Shipping

Indian Shipbuilding: From Present into the Future

Shipbuilding Ship Repair Ship Recycling
Current Status · 20th position by gross tonnage (GT), 27,000 GT · >20th position · 2nd position

Vision 2030 · Top 10th position, 5,00,000 GT · In top 10 · 1st position

Vision 2047 · In top 5 · Sustaining 1st position

Source: CRISIL Intelligence, Maritime Vision 2030, Amritkal Vision 2047

demand as Indian shipowners prefer foreign- $75 billion, with the amount expected to exceed
built ships, which are often cheaper and come $100 billion soon.
with better financing options. Additionally, Shipbuilding has a strong manufacturing
Indian shipbuilders rely heavily on foreign component, with a unique feature of nearly
components such as propellers, diesel 65 per cent value addition from other industries,
generators, control systems, and designs, such as steel, electronics, engineering, and port
leading to a significant import dependency. The infrastructure. And that also makes it an
sector does not fully benefit from the financial employment multiplier. By developing
incentives given to the infrastructure sector in capabilities to global standards through R&D
India, and the high cost of capital is another and innovation, as well as raising the
major challenge. Financing is not ship-order- indigenous content in shipbuilding equipment
based but balance sheet-based, which limits and machinery, the sector can also become a
the ability to secure multiple orders. critical component of the government’s Make in
Shipbuilding also requires 35-40 per cent of a India push. For its part, the government has
ship’s cost upfront, but the industry faces clearly outlined its goals for the sector — to be
difficulties in securing soft loans, bank among the top ten globally in shipbuilding
guarantees, and insurance. under the Maritime India Vision 2030 and the
Furthermore, under the Securitisation and top five under its Viksit Bharat 2047 vision.
Reconstruction of Financial Assets and
Enforcement of Security Interest (SARFAESI)
Act, 2002, ships are not considered assets for Shipbuilding has a strong
mortgage and as collateral for securing bank
loans. The SARFAESI law allows financial manufacturing component,
institutions to auction loan defaulters’ with a unique feature of
properties. The high cost of vessel financing nearly 65 per cent value
is another hurdle, with Indian shipowners
paying 16 per cent interest compared with addition from other
Libor +100 bps for foreign owners. The loan industries, such as steel,
tenure for Indian ship financing is also shorter,
electronics, engineering,
at 6-7 years, compared with 10-12 years for
foreign competitors. Lastly, the per-day loan and port infrastructure.
servicing cost for Indian shipowners is higher
than that of their peers.
Budget 2025-26: Setting the stage
Propel shipbuilding, reap benefits! The Maritime Development Fund (MDF) is
Promoting shipbuilding in the country will set to bolster shipbuilding and ship repair in the
enhance the use of India-made and India- country. With a corpus of `250 billion, the fund
flagged ships in cargo operations, thereby will have the government contributing a
increasing the country’s self-reliance in energy 49 per cent share, while the remainder will be
security and national defence. The expansion of sourced from ports and private sector
shipbuilding capacity in India will boost foreign investments. The key objectives of the fund
reserves, too, by lowering foreign exchange include providing low-cost and long-term
outgo. In 2023, 95 per cent of the country’s finance facilities for fleet acquisition by
international cargo was transported by foreign shipping companies, the development of
vessels, which had led to a forex outflow of shipyards, and the establishment of ancillaries

February-March 2025 | Infrastructure Today | 29

 Shipping

The Global Big 3: Strategies in Shipbuilding

China South Korea Japan
• Financial support from state-owned • Export credit agencies • R&D grants up to 33 per cent
banks and EXIM bank for provided shipbuilding for “future ships”
preferential rate of interest financing through two • Shipyards are entitled to a 40
(2-5 per cent) with long-term maturity state-owned export credit per cent special depreciation
• Export tax rebates on vessels exported agencies – K-Sure and EXIM and a 4 per cent deduction on
from China Bank of Korea capital investments
• Subsidy of RMB1,500/gross tonne to • State-run corporations offer • Export credit insurance given
replace old vessels with greener ones financial guarantees for up to by state agencies to buyers
• Capital support for existing companies 80% of loans under shipping • Domestic shipowners are
in the form of modernisation programmes given home credit by the
debt-equity swaps to reduce debt • Capital support for domestic Development Bank of
and interest obligations shipping companies – Japan (DBJ)
• Discouraging import of foreign reimbursement of up to 60 per • Low-cost finance provided for
ships through high tariffs (8 per cent) cent of cost of new vessels projects by DBJ
and VAT (17 per cent) • Bailout support during crisis • Support for the development
• Made in China programme to build • Large industrial clusters for of green technology-based
high-end vessels allied industries, such as Ulsan engines (green hydrogen) via
• Development of export-oriented Industrial Complex fully-funded design and
economic zones for the promotion of • Promotion of technical development by Government
clusters, with incentives for equipment cooperation and assistance of Japan
and component manufacturers from abroad • Skill development centres in
• Technical cooperation between • Set up several organisations port cities like Imabari,
Chinese yards and foreign shipbuilders for shipbuilding-related Nagasaki, and Yokohama
• Providing line of credit to foreign research and innovation provide training in shipbuilding
shipping companies through • Workforce training through • Export credit offered
EXIM bank for purchase from exchange and in-house by Japan Bank for
local shipyards. programmes International Cooperation

Source: CRISIL Intelligence Knowledge Database

and training centres. It also aims to support ‘Made in India’ ships. This policy will encourage
growth through financing via equity, debt, and shipowners to undertake shipbreaking and
venture capital for R&D, technology upgrades, subsequently purchase India-built ships, thus
development of designs and engineering stimulating the domestic shipbuilding industry.
know-how, and covering planning and
promotional expenses. Additionally, the fund How winners ticked the right boxes
will offer long-term credit to extend benefits to The shipbuilding industries in China, South
customers, such as long-term loans for market Korea and Japan have been boosted by strong
development. In cases of distress, the fund government support, subsidies and favourable
could take over vessels under stress and turn financing. All have also ensured domestic
around loans declared non-performing demand, invested in technology, developed
by banks. shipbuilding clusters and localised the supply
Furthermore, the government has extended chain to reduce costs. Also, many shipyards in
the basic customs duty exemption on raw China are government-owned through state-
materials, components, consumables, or parts owned enterprises, giving them access to state
used in ship manufacturing for another ten funding, low-interest loans, and guaranteed
years from April 1, 2025, a key industry demand domestic and military orders. There are
to maintain global competitiveness. privately owned shipyards, too, that receive
Shipowners will also benefit from the considerable government support.
revamping of the Shipbuilding Financial South Korea’s major shipyards are privately
Assistance Policy 2.0, which includes the owned but are financially government-
issuance of credit notes for shipbreaking or supported through refund guarantees,
scrapping in India for 40 per cent of the scrap insurance cover from commercial banks or
value, which can be reimbursed to buy new development banks, and favourable industrial

30 | Infrastructure Today | February-March 2025

 Shipping

policies. This also allows for innovation and

competition. Similar to South Korea, Japan’s
major shipyards are privately owned but receive
government support through subsidies
(including for R&D), tax incentives and low-
interest loans. Further, each country has built
its shipbuilding dominance on the back of
associated strengths – South Korea on
technology (use of AI and building of unmanned
and smart ships), China on scale and cost
(mass production), and Japan on quality and
specialisation (high-tech fuel-efficient ships).

Learn from leaders, leverage

domestic advantage
To increase domestic demand, it is essential
to mandate domestic cargo movement on
India-built ships and ensure that state-owned
enterprises place orders with domestic
shipyards. Identifying niche segments such as
specialised mid-sized ships and green-fuelled Improving ease of doing business is vital, China's shipbuilding
ships can help focus efforts, with plans to with measures such as implementing single- industry has been
window clearance at central and state levels significantly boosted
expand to other segments in a phased manner.
by the development
Developing integrated shipbuilding clusters and licences for setting up integrated of export-oriented
with ancillary industries in proximity for design, shipbuilding clusters, including shipyards, clusters, such as the
construction, and maintenance, connected to ancillary units, and supporting services and one in Dalian, which
the shoreline, with ample land for utilities. Establishing central centres of is often referred to
manufacturing ship parts and fabrication, will excellence for marine design and engineering, as the 'flagship of
minimise import dependence. providing assistance with common digital tools China's shipbuilding
industry'.
Promoting skill development is crucial for for ship design in India, and creating common
filling technological gaps through technology testing infrastructure and facilities will further
transfer from advanced shipbuilding countries, support the industry. Additionally, standardising
followed by capacity-building of engineers and designs and components to minimise the range
designers. A comprehensive strategy to of equipment, parts, interfaces, and
develop a skilled workforce for the shipbuilding documentation will enhance this support.
industry through vocational and specialised There’s no missing the home advantage –India
training programmes and international should focus on catering to domestic demand
collaborations is needed. Additionally, before aiming for global opportunities. This
incentivising shipyards to offer apprenticeship strategy can mirror India’s space journey, which
programmes and practical training started with local-built rockets launching
opportunities will help cultivate a competent domestic satellites and evolved into launching
workforce. Implementing policies and providing foreign satellites. Similarly, the manufacturing
financing through MDF is expected to provide of the Maruti 800 in 1983 marked a turning
low-cost long-term loans, bank guarantees point for the Indian small car industry,
based on ship orders, support for R&D and eventually making India the world’s fourth-
technology upgrades, and distress support. largest producer of light vehicles.
A production-linked incentive scheme for
manufacturing critical components for the About the
shipbuilding industry, the inclusion of ships author:
in the harmonised list of infrastructure for Jagannarayan
easier access to long-term funding, and Padmanabhan,
amending the SARFAESI Act to allow ships to Senior Director and
be considered mortgageable assets will also Global Head,
enhance financing options. The Shipbuilding Consulting-
Transport, Mobility
Financial Assistance Policy 2.0, which offers and Logistics, Crisil
direct subsidies for standard, specialised, and Infrastructure Advisory and Parul Singhal Garg, Lead
green or technologically advanced vessels, is Infrastructure Specialist Consulting-Transport,
also anticipated. Mobility and Logistics at CRISIL Intelligence.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 31

 Logistics

Warehousing for Viksit Bharat

India can realise its potential as a global logistics hub by proactively
developing warehousing solutions based on innovation,
sustainability, and future demand, emphasises Sandeep Chanda.

India aims to become a developed nation boom in quick commerce, along with the
(Viksit Bharat) by 2047, where the logistics and central government’s push to reduce logistics
warehousing sectors work in tandem. The costs by 10 per cent, is leading to a paradigm
focus on manufacturing-led growth is also shift. India’s warehousing and logistics sector is
going hand in hand with the governmental moving from traditional storage facilities to
initiatives through the National Logistics Policy sophisticated, technology-enabled hubs to align
(NLP), 2022, and the upgrade of Dedicated with global standards.
Freight Corridors and PM Gati Shakti. During Further, focused initiatives propose to cut
this growth phase, the world’s fastest-growing logistics costs by half to be near global
major economy must redefine its logistics and benchmarks by 2030 by reducing the cost of
warehousing framework to achieve the Viksit logistics from 14-18 per cent of GDP to the
Bharat vision. international best of 8 per cent. By
The rise of e-commerce and the recent implementing measures that increase

32 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Logistics

efficiency and integrate multi-modal transport

systems the NLP aims to bring India to the
India Logistics Opportunity
forefront of the logistics game globally. At the • Logistics and warehousing work in tandem
same time, initiatives like PM Gati Shakti focus to reduce delivery times
on seamless infrastructure integration of • This paradigm shift is driven by rising
different modes of transport to accelerate e-commerce and a boom in quick commerce
connectivity and remove bottlenecks. • India is transitioning from traditional
storage facilities to sophisticated,
Current dynamics technology-enabled hubs
Supported by initiatives such as the • The country aims to reduce logistics costs
Productivity Linked Incentive (PLI) schemes, to 8% of its GDP by 2030, to align with
manufacturing-led growth resulted in a growing global standards
demand for modern warehousing. New • Initiatives like PM Gati Shakti seek to
industrial hubs have been coming up across the integrate different transport modes to
country with the progressive expansion of accelerate connectivity
‘Make in India’. These industrial hubs need
supply chains and warehousing solutions that Source: Panattoni
make sense.
In this regard, multi-modal logistics parks inventory management, and connectivity to
(MMLPs) are poised to become the backbone ports, airports, and rail networks, MMLPs
of India's logistics infrastructure. These parks promise a seamless and efficient logistics
will streamline the overall process of cargo experience, enhancing the country’s position in
handling and significantly reduce turnaround global trade.
times. By integrating warehouses, packaging, The strategic development of warehousing

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 33

 Logistics

Growth Drivers
• Expansion of manufacturing is boosting
warehousing infrastructure
• Multi-modal logistics parks promise a
seamless and efficient supply
chain experience
• Standardising warehousing facilities
enhances global compatibility and
competitiveness
• The use of IoT, AI, and blockchain enables a
more agile and responsive logistics network
• Adopting sustainable practices reduces
CO2 emissions and builds eco-friendly
supply chains

Source: Panattoni

is central to modern logistics, providing data, enabling predictive analytics, resource

solutions to many long-standing challenges. optimisation, and better decision-making.
By standardising warehousing facilities, India These technologies are key to creating a
can improve global compatibility and more agile and responsive logistics network
competitiveness, attracting more that can adapt to changing demands.
international businesses. Efficient Sustainability in warehousing is no longer
Modern warehousing
is crucial for India to warehousing capacity ensures that goods are an option but a necessity. Green logistics,
streamline logistics, stored and managed optimally, reducing characterised by energy-efficient buildings,
cut transportation costs and increasing the speed of distribution solar-powered warehouses, and a
costs, support across the country. commitment to waste reduction through
expanding Meanwhile, technology integration is circular economy principles, is becoming the
e-commerce and transforming supply chain operations, with norm. This shift towards environmentally
retail sectors, and
automation and robotics revolutionising friendly practices will help India achieve its
drive economic
growth through inventory management and material goals of net zero emissions and create an
efficient storage and handling. The use of IoT, AI, and blockchain accountable supply chain that prioritises
distribution. provides logistics providers with real-time ecological responsibility.

34 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Logistics

Evolving landscape
To ensure the effective evolution of the Warehousing for Tomorrow
warehousing industry in India, logistics • Train the workforce in automation tools and data-driven systems to
providers must embrace digitalisation and data- improve productivity and efficiency
driven insights. This integration will refine • Warehousing operations must be adaptable to handle market
supply chain operations by facilitating better volatility or force majeure events
forecasting, managing inventory more
• An integrated approach emphasizing innovation, sustainability, and
efficiently, and enabling dynamic route inclusivity is needed
planning. Such advancements promise
• Enhance collaboration between industry stakeholders and
significant cost savings and an improved
policymakers to overcome systemic challenges
quality of service, addressing the persistent
issues of high logistics costs and fragmented • Through innovation, sustainability, and growth, India can become a
infrastructure. leading global logistics hub
In tandem with technological
advancements, the workforce must also evolve
to maintain excellence. Human capital should
be correspondingly developed through training
in areas such as automation tools and data-
driven systems. This will ensure the workforce
is adequately equipped to handle the
sophisticated technology being introduced
into work processes, enhancing overall
productivity and efficiency.
The importance of supply chain resilience Source: Panattoni
has been underscored by the disruptions
caused by the COVID-19 pandemic. To mitigate infrastructure development, fostering innovation,
such challenges in the future, warehousing and driving investment. Collaboration between
solutions must be adaptable to ensure that industry stakeholders and policymakers is
operations remain unaffected by market necessary to overcome systemic challenges.
volatility. Building resilient supply chains will In any event, warehousing and logistics
enable businesses to navigate unpredicted stand at the crux of Indian economic ambitions.
disruptions smoothly and maintain continuity India can achieve this with a confluence of
in operations. innovation, sustainability, and growth; within this
Thus, India’s warehousing sector holds vision, India could indeed realise its maximum
immense potential for growth through potential as the global logistics hub. This would
automation, digitalisation, and green practices. pave the way to Viksit Bharat, with a robust,
However, it is crucial to address the challenges resilient supply chain ready to embark on an
of high logistics costs, fragmented exciting future where growth is not only
infrastructure, and the slow adoption of stimulated domestically but also propels the
advanced technologies to realise this nation upward on the international stage.
potential fully. The sector that would form the backbone
of India's journey to becoming a developed
Getting future-ready country would be logistics and warehousing.
To fully harness the potential of the The large focus areas include innovation,
warehousing sector, India must adopt an integration, and sustainability. Such significant
integrated approach that emphasises milestones would not only enable India to meet
innovation, sustainability and inclusivity. its economic goals but also provide it with an
Infrastructure modernisation, incorporating the international benchmark for excellence in the
latest technology, is essential for operational logistics landscape.
efficiency and cost reduction. Advances such
as warehouse automation, autonomous
About the author:
vehicles, and smart packaging are
revolutionising logistics. Sandeep Chanda, Managing
Furthermore, the future lies in green Director, Panattoni India
logistics, with energy-efficient practices that
reduce carbon footprint and set an international
example for sustainable growth. Public-private
partnerships play a crucial role in accelerating

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 35

 Interaction

“Water scarcity isn’t the problem,

poor resource management is!”
Rajiv Mittal, Chairman & Managing Director, VA Tech Wabag, the
world’s third-largest water technology company, emphasises that
effective water management is the key to addressing shortages. As the
Chennai-based Indian multinational celebrates over 100 years of
operations, Mittal shares insights with INFRASTRUCTURE TODAY’s
Manish Pant on the company's future roadmap for expansion, its foray
into new business lines, and its commitment to fostering a robust
ecosystem of waterpreneurs.

VA Tech Wabag recently overhauled its

business to become future-ready. As the
world’s third-largest water management
company today, how has this strategic
shift benefited the organisation?
We have overhauled our business to become
future-ready. This strategic shift has
significantly benefited the organisation as the
world’s third-largest water management
company. About three-and-a-half years ago, we
embarked on a journey called Vidhi to re-
strategise. With the guidance of consultant
Jayant Sinha, the board approved this strategy.
The primary goal was to achieve a decent
valuation by promoting our advanced
technology, which includes over 125 patents
and trademarks. We focused on improving
marketing to highlight our unique technology,
providing us with an edge over competitors. We
emphasised technology and engineering,
avoiding the construction business to remain
focused on our strengths. Additionally, we
enhanced our O&M (operation and
maintenance) business for better revenue Rajiv Mittal, Chairman & Managing Director,
visibility and lower risk. We strategically moved VA Tech Wabag
away from the municipal sector as it does not
fully appreciate our advanced technology. With a robust order book, which
Instead, we targeted industries like oil & gas, sectors are the primary growth drivers,
pharma, and semiconductors that value and can and do you foresee demand emerging
pay for our technological innovations. Given the from new areas?
overcrowded Indian market, we expanded Definitely! For us, growth drivers are
internationally, leveraging our presence in 27 advanced technology jobs. What is advanced
countries. This strategy has yielded positive technology? What is manufactured water?
results to improve key financial ratios and boost We create water from sources not normally
investor confidence, as evidenced by our strong usable. All of us are aware of the famous
market performance and increased share prices. [Samuel Taylor Coleridge] line: “Water, water

36 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Interaction

everywhere, not a drop to drink.” What we have

done is we have made seawater drinkable. VA Tech Wabag: A Depth of Achievements
Seawater is a perennial, anti-drought source. • Founded: In 1924 by Max Reder as Wabag Wasserfilter-Bau in
Today, we are a global leader in desalination. Breslau (now Wrocław, Poland). VA Tech Wabag was established in
The other perennial, anti-drought source 2000 after the water business was separated from Balcke Dürr &
is used water. I started saying 15 years Wabag Technologies.
ago that water is too precious to be used once, • Products: Water treatment solutions.
which has turned out to be right. It’s a goldmine, • Capabilities: Solutions for drinking water treatment, industrial
an asset! Industrial or municipal used water water & wastewater treatment, desalination of sea & brackish water,
from domestic homes is reused. We are sludge treatment and recycling.
recycling water at 6 paise ($0.00073) per litre,
• Applications: Drinking water, pharma, energy and semiconductor
making the business sustainable and profitable. industries.
We are working on ultra-pure water for
• Market Position: World's third largest private water operator and
industries like semiconductors, green hydrogen,
desalination plant supplier.
and solar PV. Recently, we got an order from
Indosol Solar, and the Adani and Reliance • Services: Design, construction, and operation of water and
wastewater treatment plants as an EPC player.
groups are also setting up plants. Zero liquid
discharge is vital with the NGT (National Green Source: Company, IT Research
Tribunal) penalising industries and
municipalities. We advocate recycling all water development in countries like Saudi Arabia and
within the premises to avoid hefty fines and the UAE is astounding. I visited Saudi Arabia six
improve water reliability. We have made a months ago after almost seven years, and the
couple of pilot plants for future customers to transformation is remarkable under the new
see and get encouraged. ruler. Other countries in the region, such as
Qatar, are following suit. We believe this region
A supplementary question here: with the holds tremendous potential for us. Africa is
energy-intensive nature of desalination another promising market. While they may lack
plants being a major concern, what’s your financial resources, they are rich in natural
view on the issue? resources. This has attracted substantial
In a comparative world, if fresh water is investments from multilateral organisations, The reverse
unavailable, desalination is a viable and including the World Bank, European Bank for osmosis plant built
affordable alternative. Other options, like river Reconstruction and Development, African by VA Tech Wabag
in Dahej (Gujarat) is
linking or building dams, involve high costs and Development Bank, JICA, and KfW. As also India's largest
significant environmental concerns. Over the beneficiaries of this investment flow, we see recycling facility to
past decade, desalination has become more significant opportunities in Africa. The CIS treat purified
efficient, with power consumption reduced by countries are also emerging as a promising terephthalic acid
almost 50 per cent due to energy-efficient market. Rich in resources, they can invest in (PTA) effluent.
components. In cities like Delhi, Bombay, and
Chennai, people pay `2,000 for tanker water
without knowing its quality. Desalinated water,
delivered via pipes, ensures consistent quality
and is far superior to tanker water. Moreover,
the cost of power has significantly decreased.
Today, solar and wind energy are available at
around `4 per unit, compared to `7-8 for
thermal. We recently won a bid for green power
at `4 per unit, highlighting desalination's
affordability and sustainability. In conclusion,
while desalination may have higher initial costs,
it offers reliable, high-quality water, making it a
better choice for maintaining quality of life.

Given your focus on emerging

market economies, which countries
appear most promising for medium- and
long-term growth?
Certainly, the Middle East stands out as a
significant growth engine. The pace of

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 37

 Interaction

new infrastructure to support urbanisation. constantly. Whenever they think of water, they
Southeast Asia remains a focus due to the think of us first. This business strengthens our
ongoing urbanisation, similar to India. We have life partnership with clients through long-term
established offices and partners in Malaysia, contracts, ensuring we remain part of their
Singapore, and the Philippines and will continue operations for years. This proximity helps us
to expand in these areas. Neighbouring secure repeat business and builds our
countries such as Nepal, Bangladesh, and Sri reputation as a process and technology
Lanka are also on our radar. Despite recent contractor reducing operating costs. Our
disturbances, they are recovering. Lastly, our efficiency-driven digitalisation reduces chemical
home market in India remains a priority. As an and power consumption, positively impacting
Indian multinational, maintaining a strong the clients’ P&L. By adding value, clients always
presence in our home country is essential. consider us. You mentioned O&M contributes 40
per cent to our order book; we’re targeting at
O&M activities constitute more than least 20 per cent of revenues from the business.
40 per cent of your order book. What kind The strategy ensures O&M and project
of engagement does this signify in your businesses will support the bottom line.
specialised business line?
The most important thing is that we were With only 4 per cent of freshwater
among the first water management companies reserves, India is among the most water-
to believe in the business potential of O&M. stressed countries globally. As the world’s
This isn’t about chasing the top line; it’s about most populous country with a rapidly
improving profitability, cash flows, and growing economy, how can it become
proximity to customers. Being on their premises more ‘water-wise’?
daily, we interact with prospective clients As a water manager, I want to reassure the
people and the government that we have
enough water. We are not water-starved or
Recent Developments water-scarce; it’s poor management that has
created this perception. If water is managed
The company has significantly well, even 2 or 3 per cent reserves are sufficient.
expanded its desalination projects, The key is knowing how to use, reuse, and tap
particular ly in the Middle East and Europe, alternative sources effectively. There is no
contributing to consistent revenue growth. shortage of water in India or globally if it is
managed properly. Our role as water managers
is to ensure water security for any business or
Achieved consistent revenue growth, infrastructure development. In Delhi, our
averaging 10-15% YoY. In FY2024, it Pappankalan sewage treatment plant processes
reported revenues of `32.5 billion, a 12% sewage and sends it to your taps, ensuring no
increase over the previous year. water shortage. We employ direct and indirect
potable reuse methods. In Delhi and Chennai,
indirect reuse involves groundwater percolation.
A market cap of around `84 billion
In Namibia, water goes directly from the plant to
($924 million), and an order book of
the tap. This indirect approach addresses public
nearly `85 billion in municipal,
perception concerns. Human actions create
industrial and desalination
water shortages; judicious use, available
segments globally.
technology, and funding can resolve it.
Therefore, India can become more water-wise
Strategic partnership with Mumbai- by implementing efficient water management
based Peak Sustainability Ventures for practices and leveraging available technologies
100 bio-CNG plants at sewage treatment and alternative sources.
facilities across India and other regions.
Since natural resources are finite,
what is your view on the issue of ‘free
The company currently operates water’ as promised by several state
in more than 20 countries governments in India?
across four continents, with I have always been against the concept of
over 2,000 employees. free water. There’s no such thing as a free lunch
for nothing’s truly free. Offering free water is
Source: Company, IT Research merely a political gimmick. Free water may

38 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Interaction

sound appealing during elections, but it’s not a

viable long-term solution. Someone has to bear
the cost, and it ultimately comes from
taxpayers’ money. Providing free water or
electricity at a significant cost affects everyone.
When something is free, it is often not
appreciated or valued. Instead, a more fair and
economically sustainable approach would be a
graded tariff structure, ensuring that resources
are used judiciously and responsibly.

In the run-up to the recent Delhi assembly

elections, cleaning the River Yamuna was
a major voter demand. As a civilisation of
rivers and forests, how do we balance
ongoing brisk industrialisation and rising
consumerism with clean water sources?
When the Ganga flows from Gangotri, it is
pristine and filled with minerals. Who then
pollutes it? We do! The government’s Namami
Gange programme, initiated a decade ago, aims
to clean the Ganga. For Hindus, the Ganga is
holy. Even today, we fill bottles with its water for
our puja rooms. If we value it so much, why such as Indian Oil, GAIL, BPCL, and HPCL for The Altena
can’t we ensure it remains clean? VA Tech distribution through their filling stations. We are wastewater
Wabag is a major beneficiary of Namami Gange, already in discussions with the Ministry of treatment plant in
Germany, built for
with projects from Uttarakhand to West Bengal. Petroleum and Natural Gas and the Prime
Ruhrverband, uses
Our projects include stopping waste discharge, Minister’s Office, working on MOUs to produce an aerobic granular
installing pumping stations, and treating water. biogas and sell it to these companies for further biomass to achieve
Treated water can be used by the industry or for distribution. This partnership with Peak higher effluent
groundwater recharge. Excess water can flow Sustainability Ventures has progressed well, quality and savings
back to the Ganga, maintaining its flow. We aligning with the government's initiatives and in investment and
must act responsibly, recharging rivers with showing promising results. operating costs.
clean water. Similar projects are underway for
the Yamuna under the Ganga Action Plan, Finally, what is it like celebrating more
and the new state government in Delhi will than a century in the unique water
likely use this successful model for a cleaner management business?
Yamuna in coordination with the centre’s Jal We are fortunate to be celebrating a
Shakti Ministry. hundred years in this business. Not many
people get the opportunity. We are truly grateful
In January 2024, you partnered with to God for bringing us here. We have celebrated
Peak Sustainability Ventures to establish this milestone with our stakeholders worldwide,
100 bio-CNG plants in various regions. as without them, we would not have achieved it.
How has the alliance progressed over the Having started from humble beginnings, I am
past year? deeply emotional about this achievement. A
The alliance focuses on clean technologies few key supporters helped us reach this point,
and sustainability, areas with significant growth and we have a responsibility to foster more
potential. Many funds are dedicated to projects entrepreneurs, or waterpreneurs. Last year, we
promoting sustainability, the circular economy, launched an initiative to fund young innovators
and green energy. Peak Sustainability Ventures, in the water business with pre-seed and seed
recognising our decades of experience in capital. It’s not about the money; if an idea is
producing green energy from wastewater, good, funding won’t be a limit. We have enough
partnered with us. We treat wastewater to industry friends willing to join us in supporting
produce biogas, primarily methane, a clean and such initiatives. This commitment to nurturing
green fuel that can be converted into energy. new talent and ideas ensures that our legacy
The government has introduced a scheme to continues to grow and evolve, driving
convert this biogas into fuel like CNG. innovation in water management for the next
Compressed biogas will be sold to companies hundred years.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 39

 Union Budget

Spurring Investments,
Expanding Inclusion
Union Budget brings reformative measures to invigorate
private sector investments in the infrastructure sector, write
Mohammad Athar ‘Saif ’ and Probal Ghosh.

The infrastructure sector remains one of the `15.5 trillion from `13.2 trillion, a significant
crucial drivers of social and economic growth 17 per cent increase from FY2024-25 (revised
while India continues its journey towards Viksit estimate). Apart from the augmented capex
Bharat. Recognising its importance in allocation, other targeted measures have been
accelerating growth, the central government proposed that could catalyse private
has undertaken several measures to create an investment and create an enabling
enabling environment for infrastructure infrastructure financing environment. The
investments. For instance, in the 2023-24 targeted measures outlined in the budget can
Budget speech, Finance Minister Nirmala partly shift the onus of infrastructure financing
Sitharaman announced that an expert from public to private sources.
committee would review the Harmonised To attract more private sector investments
Master List (HML) of infrastructure to in the infrastructure sector, the relevant line
recommend the classification and financing ministries and states will develop a project
framework suitable for Amrit Kaal, the growth pipeline that can be implemented in public-
period till 2047. Subsequently, new sectors private partnership (PPP) mode. At present,
have been announced in this budget. Such India spends around 5.5-6.0 per cent of its
continuity of policy interventions helps to annual GDP on various infrastructure projects,
create a conducive environment. with the majority of the spending, i.e., nearly
This year, the government has increased the 75-80 per cent, coming from the central
allocation for effective capital expenditure to and state governments and the remaining

40 | Infrastructure Today | February-March 2025

 Union Budget

20-25 per cent from the private sector.

However, to achieve the ambitious target of
becoming a developed economy by 2047,
India needs to increase the investment in
infrastructure by up to 9 per cent of the annual
GDP. The increased investment will address the
growing infrastructure demand in the country
and aid in economic growth. Considering the
competing demands from other sectors, it is
difficult for the government to increase capital
expenditure beyond a certain limit. Therefore,
the private sector needs to increase its share of
investment in infrastructure. Enhanced private
sector participation will help bring in
operational efficiency and improve service
delivery. In addition, developing the pipeline
for bankable projects across ministries and
states can act as an enabler to improve the
potential of private investments in the
infrastructure sector.
The proposed pipeline of bankable projects
will provide the necessary opportunity for banks and PPPs. Considering the proposed The Union Budget
potential investors that the National 25 per cent financing would be like grant in-aid, proposes a
dedicated framework
Infrastructure Pipeline (NIP) couldn’t provide. this will reduce the initial investment to streamline the
PPPs will further bring in technological requirement, thereby improving the resolution of
advancement and operational and commercial viability of the urban sector stressed housing
management efficiency, which will eventually projects in the country. assets, unlocking
result in improved service delivery. States have liquidity and
been encouraged to use the India Infrastructure Towards inclusive economic growth stabilising the
housing market.
Project Development Fund (IIPDF) scheme to The government has also renewed its focus
finance the development and structuring of on the social and commercial infrastructure
PPP projects. In this context, it is pertinent to sector to ensure inclusive economic growth.
mention that setting up a partial credit Establishing the State Bank of India-managed
enhancement facility for corporate bonds Special Window for Affordable and Mid-Income
by the National Bank for Financing Housing (SWAMIH) fund 2.0 as a blended
Infrastructure and Development (NaBFID), an facility with contributions from the government,
AAA-rated development finance institution, will banks, and private investors will enable the
enable the infrastructure companies and completion of dwelling units in stressed
special purpose vehicles to raise funds at a housing projects. Approximately 100,000 home
lower rate. The reduced cost of capital will buyers have investments in such stressed
enhance the attractiveness of the PPP mode to
implement infrastructure projects. This
intervention can have a multiplier impact on Fuelling Growth: Positive Trajectory in Effective Capex (In `Trillion)
Fuelling the growth, positive trajectory in effective capex
infrastructure development.
18
To encourage states to increase capital
expenditure and undertake infrastructure 16
development initiatives, an allocation of 14
`1.5 trillion has been earmarked for 50-year 12
interest-free loans. States can further leverage 10
the newly proposed Urban Challenge Fund
8
(UCF) to establish cities as growth hubs and for
6
their creative redevelopment. For FY2026, a
corpus of `100 billion has been proposed under 4
this fund. The fund will be financing 2
25 per cent of the cost of bankable projects, 0
with a condition that a minimum of 50 per cent 2020-21 2021-22 2022-23 2023-24 2024-25 (RE) 2025-26 (BE)
of the total contributions for these projects are Capex Capital Asset Grants Effective Capex

to be received from other sources like bonds, Source: Union Budgets

Public sector leads the investment in infrastructure

February-March 2025 | Infrastructure Today | 41
120%

100%

80%
 10
8
6
4
2 Union Budget
0
2020-21 2021-22 2022-23 2023-24 2024-25 (RE) 2025-26 (BE)
Capex Capital Asset Grants Effective Capex

PublicPublic
Sector Leads in Infrastructure Investments
sector leads the investment in infrastructure financing needs. With up to a 49 per cent
government contribution, this fund can anchor
120%
as a collaborative investment platform for
100% international and Indian investors in the ships
80%
and waterways sector.
The proposed National Asset Monetisation
60% 2.0 (NMP 2.0), coupled with necessary
40% regulation and fiscal policies, intends to infuse
nearly `10 trillion into greenfield investments.
20%
Continuing the success of NMP 1.0,
0% NMP 2.0 is also expected to attract substantial
Infrastructure Roads Power Railways Urban Other investments from SWFs and foreign pension
(Overall) Infrastructure Infrastructure
funds as the tax exemption for them has been
Source: CRISIL Infrastructure YearbookGovernment
2023 Sector Private Sector extended until 2030 in this budget. In addition,
NMP 2.0 may create space for developing
infrastructure asset-backed securities (IABS) as
housing projects. Furthermore, concessional an asset class in the secondary market to tap
Micro Units Development & Refinance Agency into domestic institutional investors.
(MUDRA) loans will be offered on favourable The initiatives and interventions proposed in
terms to promote the homestay ecosystem. the union budget will have a long-lasting impact
This step will provide much-needed aid to the on the overall infrastructure financing
tourism sector, which will have a significant landscape. The majority of these steps are
impact on generating local employment and targeted to either reduce the cost of capital for
boosting regional economic growth. private investors or lower the initial investment
The addition of large ships and hotels in the requirement for greenfield projects. However,
top 50 tourist destinations in the HML will grant the implementation of the proposed
these sectors access to long-term capital from interventions has a few dependencies that need
domestic infrastructure-focused development to be addressed. For instance, NaBFID needs to
finance institutions (DFIs). This will also enable rapidly develop a credit enhancement product
them to raise funds from sovereign wealth aligned with market requirements and
funds (SWFs) and pension funds at competitive investors’ preferences. Similarly, to achieve the
rates because these funds are exempted from underlying objective of the Urban Challenge
taxes for infrastructure investments. To reduce Fund, the municipalities need to undertake
the cost of intermediation and improve the comprehensive reforms to improve their
information availability for conducting due creditworthiness and own source revenue
diligence, the government has also announced share. The disbursement of the UCF is
that it will provide private investors access to proposed to be linked with commercial
the relevant data and maps through the PM fundraising, where currently only a handful of
Gati Shakti Portal. A maritime development municipalities have an investment-grade credit
fund with a corpus of `250 billion has been rating, which may limit the offtake of this fund.
proposed to support the industry’s long-term Therefore, adequate capacity-building
interventions are needed to support the
budget announcements to ensure that the
Yearly Investment Requirement Across Infrastructure Sub-Sectors key budget initiatives have the resources
necessary for success.

Social & Commercial 5.50

Infrastructure About the
author:
Mohammad Athar
Power Generation 3.30 ‘Saif’, Partner &
Leader Capital
Projects and
Railways 2.00 Infrastructure
Development,
PwC India and
Roads 3.00 Probal Ghosh, Managing Director, Capital Projects &
Infrastructure, PwC India. Haider Saikh, Associate
Director Capital Projects & Infrastructure, PwC India
- 1.00 2.00 3.00 4.00 5.00 6.00
also contributed to the article.

42 | Infrastructure Today | February-March 2025

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 Union Budget

Building the Growth Framework

India has earmarked a substantial `11.21 trillion in the Union
Budget 2025-26 for the infrastructure sector, underscoring the
central government’s commitment to driving economic growth
through robust infrastructure development. This allocation is poised
to enhance connectivity, boost employment, and foster private
sector participation as the country aspires to utilise the sector’s
potential to become a developed nation by 2047.

“The 2025 Union

Budget offers a clear
path forward, focusing
on sustainable growth,
affordable housing,
and infrastructure
Roads & Highways Railways development. The
Significant investment in The major focus is on completion of 50,000
expanding and upgrading modernising railway dwelling units in stressed housing
national highways. infrastructure and enhancing projects and the `1.5 trillion allocation
connectivity.
for infrastructure will bring much-needed
relief to middle-class families, helping
them move closer to homeownership
while fostering rapid urbanisation. We
are optimistic about the `10 trillion
asset monetisation plan, which will
infuse capital into new projects, sparking
innovation across key sectors.”
- Arun Shukla, President & Director,
Airports Public Transport JK Lakshmi Cement
Expansion and Emphasis on developing
modernisation of airports efficient public transport
to boost air connectivity. systems in urban areas.

Housing Renewable Energy Electricity Telecommunications

Increased funding for Investment in renewable Upgrading the power grid Expansion of broadband
affordable housing projects. energy infrastructure to and ensuring a reliable and telecommunications
promote sustainable electricity supply. infrastructure.
development.

44 | Infrastructure Today | February-March 2025

 Union Budget

“Enhanced support of “The coordinated three-

`1.5 trillion to state capex year project pipeline
in the form of interest- of the government,
free loans, the National which is supported by
Monetisation Pipeline ministries and the India
2.0 which proposes to Infrastructure Project
plough back `10 trillion in Development Fund
new projects over 2025- (IIPDF), will not only
30, creation of a three-year pipeline of PPP speed up the completion
projects in all infrastructure ministries will of projects but also sustain private sector
help keep up the momentum in infrastructure participation. Further strengthening this
building that India has achieved over the last momentum, the launch of the second
few years.” Asset Monetisation Plan, with `10 trillion
- Sanjiv Puri, President, CII & Chairman & earmarked for reinvestment, underscores
Managing Director, ITC the commitment to leveraging existing
assets to fund new projects. Besides,
sharing PM Gati Shakti data with private
players will help improve project planning
and execution, and minimise inefficiencies
“The `1.5 trillion in long-
in resource utilisation.”
term PPP infrastructure
investment, coupled - Kavita Shirvaikar, Managing Director, Patel
with the `1 trillion Urban Engineering
Challenge Fund, signals
a new era of urban
modernisation and
economic resilience.
Strategic initiatives like
global manufacturing clusters and clean
tech advancements under the National
Manufacturing Mission will position India as
a global industrial powerhouse. By promoting
domestic production of critical components like
wind turbines, solar components, electrolysers Logistics Urban Development
and batteries, we are fostering innovation and Development of logistics parks Increased funding for
sustainable growth.” and freight corridors to improve urban infrastructure
supply chain efficiency. projects, including
- Vineet Mittal, Chairman, Avaada Group smart cities.

Ports & Shipping Industrial Corridors Smart Cities Water Supply

Investment in port Establishment of new Continued investment in Projects to ensure clean
development and improving industrial corridors to boost smart city projects to and reliable water supply
maritime infrastructure manufacturing. enhance urban living. in urban and rural areas.
through Maritime
Development Fund.

February-March 2025 | Infrastructure Today | 45

 Union Budget

“The National
Manufacturing
Mission’s
targeted support
for all renewable
Space Technology Sanitation energy sources
Bolster space exploration, satellite Initiatives to improve is a welcome
technology, and geospatial sanitation facilities across move, as it
capabilities to advance the the country. reinforces
country’s space ambitions.
India’s commitment to a level
playing field and ambitious energy
goals. The expected outcomes are
promising: surpassing the 500 GW
target and creating nearly 3 million
green jobs. Additionally, incentives
for electricity distribution reforms
and intra-state transmission
upgrades will likely improve
Rural Infrastructure Waterways the financial health of power
Focus on improving rural Development of inland companies and enable better grid
infrastructure, including waterways for efficient integration of renewables.”
roads and bridges. transportation.
- Girish Tanti, Vice Chairman,
Suzlon

“By developing
top destinations
in partnership
with states,
Tourism Sustainable Development
Enhanced investment in Emphasis on sustainable enhancing
tourism infrastructure to and eco-friendly medical tourism
attract more visitors. infrastructure projects. through the
‘Heal in India’
initiative, and
introducing visa reforms, India
“The `1.5 lakh crore investment in is strengthening its appeal as a
renewables and the removal of duty world-class travel and healthcare
barriers on critical minerals is a direct hub. The inclusion of hotels in
call to action for businesses—if you're the harmonised scheme and visa
not pivoting towards sustainability, waivers for select foreign tourists
you’re already behind. The next decade further reinforce a comprehensive,
will belong to companies that can future-ready travel ecosystem.”
integrate clean energy, smart grids, and - Lucas Ramos, Senior Director,
energy-efficient solutions into their business models.” Travel & Membership for Asia,
- Vijay Karia, Chairman & Managing Director, Ravin Group Pacific & India, RCI

46 | Infrastructure Today | February-March 2025

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 Interaction

“TCE eyes significant potential

in the US market.”
As part of its strategy to significantly expand globally, Tata
Consulting Engineers (TCE), a 63-year-old consultancy, is set to
bring the best Indian engineering thought leadership to the US,
says Amit Sharma, CEO & MD. In a candid interview with
INFRASTRUCTURE TODAY’s Manish Pant, Sharma emphasises the
importance of policy stability and a long-term approach to ensure
India maximises the benefits of the China Plus One strategy for the
exponential expansion of infrastructure and allied sectors.

How do you balance your principal role as

an engineering consultancy with the
additional challenge of acting as an
engineering, procurement, and
construction management (EPCM) firm
for your diverse clientele?
We have been in India for 63 years and are
now the largest EPCM firm, diversified across
sectors like metal mining, power, chemicals,
digital, and infrastructure. This diversification,
coupled with our skilled teams, allows us to
connect with multiple sectors and take a
holistic approach. For example, understanding
how trends like electric vehicles (EVs) impact
infrastructure, chemical, automotive, and
manufacturing sectors helps us map out
industry implications. Our core focus is EPCM
projects, but we also excel in thought
leadership. We conduct detailed assessments
from concept to execution, creating bankable
reports and aiding clients in raising capital. Our
in-house design, engineering, and project Amit Sharma, CEO & MD, Tata Consulting Engineers
management ensure comprehensive solutions.
Clients seek us not just for project execution you correctly mentioned, current developments
but for insights into trends and technologies. are just the tip of the iceberg. We need housing,
Our strategy combines consultancy, trend connectivity, and better roads for goods
analysis, and thought leadership with hands-on transportation. Despite a dedicated rail freight
project execution, making us a trusted partner corridor, logistics and transportation have
for diverse sectors. immense potential. As India's population moves
towards the upper middle class, improved
While India has significantly expanded its infrastructure is essential. Over the past
infrastructure in the past decade, do you decade, there has been significant progress in
believe this is just the tip of the iceberg, mass housing and integrated mobility, and this
considering the immense demands of the will continue for decades. We need better
population and economic growth? infrastructure across all city tiers, clean cities,
India’s growth must be infrastructure-led. As sewerage systems, hospitals, schools, and

48 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Interaction

housing. Our population is a strength, driving

GDP growth and internal consumption, which is
on the rise. While exports are crucial, internal
consumption will drive economic growth. The
‘Make in India’ initiative spans semiconductors,
chemicals, defence, space, and aerospace. We
are excited about how internal consumption
and export-oriented approaches are shaping
India’s future.

What are the primary subsegments within

infrastructure driving TCE’s growth, and
which new areas do you foresee
propelling it into the future?
Over the past couple of years, we have
witnessed significant private capex
commitments for the first time. The
momentum started more than five years ago,
before the COVID [pandemic] hit, leading to a
wait-and-watch situation. This period allowed semiconductors, metal mining, and more. Since its founding
companies to conduct more research. Post- in 1962, TCE has
provided services to
COVID, there was a sudden demand, and we Besides making strategic acquisitions
diverse sectors such
were able to leverage that. For instance, steel, like the recent purchase of the US-based as construction,
aluminium, and copper production are core design firm CDI Engineering Solutions, transport, energy
sectors aligning with India’s growth what other strategies are you considering and space
requirements. Copper is essential for to expand TCE's overseas business? technology.
electrification, aluminium for EVs and In the last ten years, we have grown TCE
lightweight materials, and steel for construction from virtually zero exports to about 35-40 per
activities and railway modernisation. The cent of our revenues in international markets,
demand for cement is also on the rise. In the primarily in the Middle East, Southeast Asia,
next five years, India’s steel capacity is set to Europe, and Africa. The US market, though
triple, cement capacity double, and aluminium large, has specific requirements like signatory
capacity triple. This domestic capability is state permits and private equity. Our US
bolstered by external perceptions of stability, acquisition is based on three principles: the US
attracting FIIs and FDI. While the China Plus is the largest unfragmented single market with
One strategy is discussed, real action is the biggest GDP; it has a strong talent base and
happening in India due to its stable growth demand in semiconductors, solar, and
platform. The country’s consistent 6.5-7 per chemicals; and it offers good Indo-US
cent growth rates are unmatched globally. collaboration opportunities for a resilient supply
TCE has grown 20-25 per cent year-on-year chain. Expanding internationally is not just
over the last three to four years, and this trend about numbers but also about market and
continues. There is substantial demand across talent availability. The US market aligns well
industry value chains for core engineering work, with our [expansion] strategy, and we see
new plant manufacturing units, batteries, solar, significant potential for growth. Engineering
chemicals, speciality chemicals, relies on thought leadership and converting

Engineering of India's Engineering of India's Detailed engineering Project management Engineering review of
first semiconductor first solar PV glass of the world's first green consultancy (civil) for the 182-meter tall
Plant (2024) plant (2024) ammonia project (2022) the Mumbai and Statue of Unity (2019)
Ahmedabad highs-speed
rail project (2021)

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 49

 Interaction

viable, long-term, sustainable employment while

Tata Consulting Engineers: Brick-by-Brick ensuring a skilled workforce. Infrastructure and
manufacturing initiatives will generate job
• Founded: Established in 1962 as joint venture between the Tata
demand, but we must have sufficiently skilled
Group and the US-based Ebasco Services. Today, it is a 100%
manpower. Training this workforce has been
subsidiary of Tata Sons, part of the $165 billion Tata group.
challenging, as manufacturing and infrastructure
• Competency: An integrated engineering consultancy firm,
require tougher conditions compared to our
specialising in services across the entire project lifecycle, from
traditional service economy in IT and banking.
concept to commissioning.
India must focus on polytechnics, skill
• Operations: Active in key sectors like power, infrastructure, and development, and MSMEs (micro, small and
resources, i.e., hydrocarbons, chemicals, mining, and metallurgy. medium enterprises) to make these jobs
• Capabilities: Managing complex projects worldwide, building appealing, despite their physical and
cost-effective and environmentally friendly solutions, providing environmental challenges. Government policies
niche services tailored to client needs, and engineering solutions for and the private sector must invest in training
the Industrial Internet of Things (IIoT). high-quality manpower to achieve global
• OEPC Model: Operates on an owner’s engineer and project benchmark infrastructure and manufacturing
consultant (OEPC) model, offering end-to-end engineering solutions capabilities. Our project requirements across
that span feasibility, design, execution, and operational support. India necessitate a cluster-based approach,
• Global Presence: Over 12,000 projects delivered across 65+ countries. similar to SEZs (special economic zones) and
STPs (software technology parks), where
Source: Company, IT Research multiple companies can collaborate and share
resources. Clusters for semiconductor and
ideas into the physical world, and the US has a chemical companies, for instance, will allow for
talent deficit that we can help address. concentrated training and support.
Fragmentation across India makes labour
With so much conversation around workforce movements difficult. Additionally, we
concrete, are you also making need a structured approach to projects and
efforts towards sustainable utilisation manufacturing, with proper timing for design
of the commodity? engineering followed by construction. This will
We approach sustainability in three key reduce delays caused by poor planning or initial
ways. First, we have a subsidiary called Ecofirst estimates and make the value chain more
Services, a niche company with about 300 attractive to younger talent. Balancing life and
people dedicated to sustainable infrastructure. work in challenging environments will encourage
They focus on sustainable design, calculations, the next generation to adopt these professions.
and energy analysis. Second, we use energy Lastly, instead of producing 1 million
and carbon calculators to achieve optimal engineers, we should train 200,000 engineers
efficiency while adhering to codes and and 500,000 highly skilled polytechnic workers.
standards. This involves using methods like This approach will ensure a workforce that
precast and prefab construction. Third, we contributes to high-quality manufacturing and
emphasise the circularity and reusability of infrastructure, addressing the concern of
materials, which is currently at an academic potential redundancy in certain roles within the
and industrial stage. We are exploring how to infrastructure sector.
recycle materials like metal, aluminium, steel,
chemical waste, mining tailings, and demolition Engineering has traditionally been viewed
waste. The goal is to innovatively reuse these as a male-dominated field in India. With
materials to create the concrete of the future. more women entering the profession, how
While the first two approaches are already do you see this perception changing, and
integrated into our daily work, the third is in the what steps is TCE taking to promote
early stages of development. gender diversity?
We have our initiative on gender diversity
With initiatives like the Skill India at TCE. For example, we are one of the
Mission underway towards developing largest recruiters in pure engineering,
future-ready manpower, how can the taking about 1,000 people each year from
emerging opportunities be maximised to engineering colleges and diploma programmes.
address the concern of potential While ensuring meritocracy, a minimum
redundancy in certain roles within the of 25 per cent of our recruits are women
infrastructure sector? graduate engineers and trainees. We also have
India faces the twin challenge of providing internal mechanisms to help women balance

50 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Interaction

Design engineering for Design and engineering of Gujarat state water Engineering services for Design and engineering
Tata Lockheed Martin the launch pad for the and wastewater Sultan Iskandar of India's first
Aerostructures and Tata GSLV rocket in partnership urbanisation project Combined Cycle Power indigenously built 2.3m
Boeing Aerospace with ISRO (2016) (2014) Plant in Malaysia (1996) optical telescope at
plants (2018) Kavalur (1986)

their home and office requirements. Certain connectivity. Skilled manpower focusing on
areas that require precision, focus, and quality blue and white collar jobs is another critical
see a preference for our women colleagues, aspect. Training and investing in high-quality
who perform exceptionally well. Over the past manpower are vital to achieving global
two decades, we have observed an increasing benchmark infrastructure and manufacturing
number of women entering core engineering capabilities. Without addressing these barriers,
fields like mechanical, civil, and electrical competition from countries like Vietnam,
engineering. We are finding good female Cambodia, and Malaysia could hinder India’s
candidates in colleges, being a day-zero, ambition of becoming a manufacturing hub.
day-one company, and we recruit from The China Plus One strategy must translate
women-only engineering colleges and into actionable steps rather than remain
skill institutes. Creating a friendly and theoretical. By tackling incentivisation,
conducive work environment, along with strong land acquisition, and skilled manpower issues,
policies on POSH (Prevention of Sexual India can realise its infrastructure and
Harrassment) and ethics, inherited from the manufacturing ambitions.
Tata group, is crucial. Across India, if these
environments are provided, our women Just like during the oil boom-fuelled
workforce can propel the nation and the youth infrastructure creation in the Middle East
to equal proportions. While progress has been from the 1970s to 1980s, Indian
made over the last 12 months, it is still at an engineering firms often lost out on
early stage. lucrative contracts to Japanese and
South Korean firms.
Despite the positive growth projections, Yes, that’s true. The advantage or
certain roadblocks continue to hamper disadvantage in countries like South Korea is
the Indian infrastructure sector. What are similar to the China model, where state-owned
the key barriers, and how can they be enterprises (SOEs) play a significant role.
effectively resolved? The state has a say in large conglomerates
Despite positive growth projections, several in South Korea and Japan. This state
roadblocks hamper the Indian infrastructure involvement means policy implementation is
sector. While subsidies like PLI (Production more straightforward. India follows a free
Linked Incentive) or ISM (India Semiconductor market approach, with the government setting
Mission) have shown results, other sectors policies and the private sector making
could leverage innovative approaches such as decisions. While there are advantages to a free
manufacturing, production, or offtake-based market, transformation with speed requires
subsidies to propel growth. Policy stability and strong levers. One approach is SOEs, while
a long-term approach are essential. For another is about creating stable, long-term
instance, hydrogen or green steel policies must policies that provide a tangible internal rate of
remain consistent to attract private investment. return and a business case for private
Land acquisition continues to plague new investment in big capex. India cannot adopt an
projects, requiring a standardised approach. SOE model, but we need stable policies.
Balanced growth across India’s regions, The private and public sector enterprises
facilitated by a central body with a policy are keen on this, and our internal markets
framework, will prevent urban chaos and can drive growth. Export is an add-on.
ensure optimal land use with necessary We have the capital and stability, but policy
resources like water, electricity, and stability is essential.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 51

Technology

Geospatial: Revolution at
the Doorstep
Effective utilisation of technologies through the National
Geospatial Mission can revolutionise construction, planning and
governance in a rapidly growing India, asserts Kaushik Khona.

India’s Union Budget 2025-26 has marked bridge these gaps by consolidating
a transformative step in digital infrastructure geospatial data, fostering public-private
with the National Geospatial Mission (NGM) collaboration, and ensuring real-time
launch. With an allocation of `10 million, the monitoring of national projects.
mission aims to modernise land records,
enhance urban planning, and improve Geospatial in nation-building
infrastructure execution using geospatial Geospatial technology is set to transform
technology. Integrated with PM Gati Shakti, India’s governance, economic planning, and
India’s `100 trillion infrastructure master plan, infrastructure development. One of its most
NGM is a key step toward data-driven critical applications is in improving land records
governance and development. and governance. Nearly 67 per cent of India’s
The Indian geospatial economy, valued at civil litigation cases are land-related, according
`300 billion in 2023, is projected to grow at to the National Council of Applied Economic
12-15 per cent CAGR, with an estimated Research (NCAER) data. Although 92 per cent
contribution of `630 billion to GDP by 2029. of land records have been digitised under the
However, land disputes, fragmented geospatial Digital India Land Records Modernisation
adoption, and cost overruns of 20-25 per cent Programme (DILRMP), challenges in
in infrastructure projects continue to pose interoperability persist. Therefore, integrating
significant challenges. The NGM seeks to cadastral mapping with AI-driven analytics is

52 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Technology

expected to significantly reduce land disputes

and fraudulent registrations, making land Advantage Geospatial
administration more transparent and efficient.
In urban planning, geospatial data is proving • Overhauling India’s governance, economic planning,
to be an essential tool for modern city and infrastructure development
management. By 2030, 40 per cent of the • Improving land records and governance by integrating
country’s population will reside in urban areas cadastral mapping with AI-driven analytics
per a World Bank report. While `2.05 trillion has • Adoption of 3D city modelling and AI-driven zoning regulations to
been invested in Smart Cities, congestion and optimise infrastructure utilisation
inefficient planning remain widespread issues. • Enabling real-time disaster monitoring, early warning, and improved
The adoption of 3D city modelling and emergency response capabilities
AI-driven zoning regulations will optimise • Streamlining logistics, improving project execution, and reducing
infrastructure utilisation and significantly project execution delays by 30 per cent.
reduce planning inefficiencies.
Disaster management is another area where Source: CS Tech AI
geospatial intelligence is crucial. Between 2010
and 2020, India suffered $87 billion in economic of universities currently offer specialised
losses due to extreme weather events, according study programmes on the subject. A National
to the World Bank. The NGM will enhance the Geospatial Training Initiative, integrated into
Indian Space Research Organisation’s (ISRO’s) the Indian Institutes of Technology, National
geoportal Bhuvan platform, ensuring real-time Institutes of Technology, and private
disaster monitoring, early warning systems, and universities, will help bridge this gap.
improved emergency response capabilities. Additionally, incentives such as tax
According to the Ministry of Statistics and breaks for geospatial R&D and startup grants
Programme Implementation, nearly 25 per cent will encourage investments in AI-driven
of infrastructure projects in India exceed their mapping innovations.
budgeted costs due to inefficient planning and
monitoring. Thus, infrastructure development The NGM impact
will also benefit from geospatial technology. The adoption of geospatial technology
By incorporating digital twins and geospatial will bring significant economic and social
analytics, India can streamline logistics, benefits. Advisory firm McKinsey estimates
improve project execution, and reduce delays infrastructure inefficiencies to cost India
by up to 30 per cent! between `3-4 trillion annually. By integrating Thorough
geospatial data into planning and execution geospatial mapping
Accelerating sector growth processes, project delays can be reduced helps an expert
A clear regulatory framework is essential to by 30 per cent, leading to cost savings and team conduct a
detailed physical
fully harness the potential of geospatial improved efficiency.
inspection of the
technology. India currently lacks a national Even as 55 per cent of the country’s progress on a water
geospatial policy framework outlining data- population relies on agriculture for sustenance, treatment plant in a
sharing norms, licensing models, and security poor soil mapping and inefficient irrigation village in
guidelines. Establishing a National Geospatial practices continue to hinder growth. The Maharashtra’s
Data Repository will integrate datasets across application of geospatial analytics will enhance Raigad district.
government agencies, eliminating inefficiencies
and enabling seamless access to high-quality
geospatial data.
Expanding public-private collaboration is
another key step. Despite an `300 billion
industry valuation, 80 per cent of geospatial
data remains government-controlled, limiting
private-sector innovation. Opening access to
public geospatial data for research and
enterprise use will accelerate growth and
technological advancement.
Similarly, the demand for skilled
professionals in this domain is expected to rise
significantly. While the industry chamber FICCI
projects the country may require 1 million
geospatial professionals by 2030, only a handful

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 53

 Technology

government must prioritise data governance, AI

Just Fast-Track Adoption integration, workforce development, and
financial support. Establishing a unified
• Rollout a clear regulatory framework geospatial data platform will allow real-time
to fully harness the potential of geospatial technologies access to standardised datasets, aligning
• Establish a national geospatial data repository to integrate datasets with PM Gati Shakti’s Unified Logistics
across government agencies Interface Platform (ULIP) initiative for better
• Expand public-private collaboration for research and enterprise use to logistics tracking.
accelerate growth AI and digital twin technology should be
• Launch a national geospatial training initiative with IITs, NITs and mandated for large-scale infrastructure
other universities for training projects. A policy requiring digital twins for
• Provide tax breaks for geospatial R&D and startup grants to encourage projects exceeding `5 billion will improve
investments in innovations efficiency and resource allocation. Furthermore,
collaborations with ISRO and private space-
Source: CS Tech AI tech firms will enhance India’s satellite-based
geospatial capabilities.
productivity and water management. Moreover, Investing in skill development is crucial.
the rollout of precision farming and satellite- The Geospatial Skilling Initiative should be
based water monitoring can increase crop expanded to train professionals in AI-driven
yields by 10-15 per cent while reducing geographic information system (GIS)
irrigation wastage by 25 per cent, according to applications. Additionally, establishing AI-
the UN body Food and Agriculture Organisation. powered research labs will drive innovation and
Urban planning will also benefit ensure India remains competitive in the global
significantly. A Boston Consulting Group study geospatial economy.
estimates traffic congestion costing Indian Expanding funding is another priority. The
cities `1.4 trillion annually. Implementing government allocation to encourage innovation
AI-driven geospatial planning will optimise in geospatial should support AI-driven startups
traffic management and urban infrastructure, and tax incentives must be introduced for
reducing bottlenecks and enhancing mobility. enhanced R&D investments. Long-term funding
Climate resilience and environmental commitments, scaling up NGM’s budget from
sustainability are critical areas where `1 billion to `100 billion over five years, will be
geospatial technology can drive change. critical for sustained impact.
According to the World Bank, India faces `87 The NGM could revolutionise the country’s
billion in annual economic losses due to governance, infrastructure, and economic
climate-related disasters. Implementing flood development. However, its success depends on
zone mapping, deforestation tracking, and policy continuity, funding allocation, and
water resource management through effective implementation strategies.
geospatial analytics will enhance preparedness Policymakers must act decisively by expanding
and mitigation strategies. NGM’s budget, developing a standardised
geospatial data infrastructure, and leveraging
Ensuring effective implementation AI-driven solutions to optimise national
To ensure the success of NGM, the planning and development.
By prioritising these measures, India can
establish itself as a global leader in geospatial
Steps for Successful Adoption technology, ensuring economic growth,
governance efficiency, and sustainability. Let us
• Prioritise data governance, AI integration, workforce turn NGM into a revolution transforming how
development, and financial support India builds, plans, and governs.
• Establish a unified data platform aligned with PM Gati And the time to act is now!
Shakti initiative for better logistics tracking
• Mandate AI and digital twin technology for infrastructure projects About the author:
exceeding `5 billion Kaushik Khona, Managing
• Invest in AI-driven GIS applications and research labs to drive Director of India Operations,
innovation and competitiveness CS Tech AI.
• Scale up NGM’s budget from `1 billion to `100 billion over five years for
sustained impact

Source: CS Tech AI

54 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Interaction

“By 2030, we anticipate

a fourfold growth.”
Nageshwar SV, Associate Vice President and Business Head, Amara
Raja Infra, discusses the company’s venture into commercial
infrastructure projects and the strategies behind this diversification.

Please tell us about the company and

how it has expanded.
The company started in 2008, initially
focusing on providing solutions for our group’s
expansions. In the first few years, we were
mainly handling end-to-end projects for our
group companies, from design to construction
and commissioning. Around 2014-2015, we
started branching out into external projects and
building our client base. Post-COVID, we
realised that with the expertise we had
developed over the years and the skilled teams
we had built, we could contribute to a growing
and challenging market. We position ourselves
with knowledge of process integration, civil
execution, and design management.

You is known for its energy solutions

What inspired the expansion into diverse
commercial infrastructure projects?
Energy solutions have been a key focus for
us for decades. However, with India’s rapid
growth in the infrastructure and construction Nageshwar SV, Associate Vice President and
segments, we saw an opportunity to contribute Business Head, Amara Raja Infra
to this boom. As part of our strategic vision, we
wanted to diversify into the commercial The company has a diverse portfolio.
infrastructure sector. We believe this segment what specific growth areas is the
could act as another growth engine for the company targeting?
group, alongside energy and mobility. The In the building segment, we are focusing on
infrastructure vertical has immense potential healthcare, education, commercial IT buildings
and we want to play a pivotal role in this and select residential projects. In the industrial
growth story. segment, we aim to focus on metal, minerals,
and related industries where our engineering
In a competitive market, what makes the expertise can make a significant impact. It’s not
company unique? just about contracting for us; it’s about
What makes us unique is our ability to providing engineering solutions to meet the
integrate complex requirements into projects. growing, complex needs of industries.
We aren’t just a civil construction company; we
understand the process requirements of our For industrial projects like research and
clients and integrate them seamlessly into our manufacturing facilities for Bharat
projects. Our engineering capabilities allow us Electronics and Schneider Electric, what
to be more than just contractors – we position key challenges did you face?
ourselves as an EPC company that offers One of the key challenges we face,
complete and tailored solutions. especially in industrial projects, is the evolving

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 55

 Interaction

requirements of clients. Projects often undergo and civil construction. Additionally, we have
changes after the initial planning phase but the mobile training units that visit project sites,
delivery timelines remain fixed. To manage this, offering tailored training based on the specific
we use our expertise to conduct brainstorming stage of the project. We also provide
sessions with clients upfront, identify potential certifications for courses completed at our
grey areas and come up with solutions early on centres. We are offering training initiatives with
to avoid cost or time overruns. courses approved under the National
Apprenticeship Promotion Scheme (NAPS) in
What are some key trends you are collaboration with the National Skill
observing in the sector? Development Corporation (NSDC). Our skill
The construction boom in India is just development centres in Chittoor also work with
beginning and while that presents tremendous industry partners to train workers and ensure
growth potential, it also brings challenges – we meet the growing demand for skilled labour
especially in terms of skilled labour. To address in the sector.
this, we’ve established a skill development
centre in Chittoor to train our workforce, How is your company integrates
focusing on mechanical, electrical and sustainable practices into its projects?
plumbing skills. Additionally, we are Sustainability is a core focus, particularly in
continuously adopting new technologies to stay the design phase. We ensure that all designs go
ahead of the curve and meet the sector’s through our ESG review process to meet
evolving demands. sustainability goals. Additionally, when
executing projects, we adhere to sustainable
Are you looking to expand internationally? practices as specified in the contracts. We also
At the moment, we are focused on projects have dedicated resources at the business level
within India but we are exploring opportunities to oversee the implementation of sustainability
in overseas markets. We’re building teams to measures across our projects.
address potential requirements abroad and we
hope to expand into international markets soon. How do you ensure quality control?
Quality control and safety are non-
How do technologies like BIM seamlessly negotiable aspects of our project delivery. We
integrate into your projects? have SOPs in place for both and our central
Technologies like BIM, REVIT and teams conduct regular audits. Additionally, as
Navisworks help us identify design-level part of our skill development initiative, we train
clashes early, preventing reworks during our teams on safety and quality practices,
construction. These technologies also allow us ensuring that these standards are upheld
to manage material orders more efficiently, throughout every project.
ensuring on-time delivery and reducing waste,
which ultimately helps control project costs What are the company’s growth
and maintain timelines. projections for the next five years?
We expect our building and factory segment
How do you see technologies like LGSF to contribute significantly to our overall
shaping the future of construction? business. By 2030, we anticipate a fourfold
LGSF and cold-formed steel technologies growth in our overall business. In terms of
are particularly relevant for the future of new market segments, we are looking at areas
commercial construction, especially with the such as data centres, environmental
growing skill shortage in the industry. These engineering, and metals and minerals. These
materials help speed up the construction areas are ripe for innovation and we plan to
process and result in significant cost savings provide engineering solutions to address the
– sometimes up to 40 per cent in steel usage. growing challenges in these fields. We focus on
We are monitoring this space and working on offering cost-effective solutions and building
developing our design teams to integrate these strong partnerships with our suppliers and
technologies into our solutions. vendors. By engaging early in the project
planning phase, we can develop unique value
Tell us more about the company’s skill propositions for our clients. The volatility in
development initiatives. material costs and labour are a challenge but
We’ve set up skill development centres in we are continuously working on these aspects
Chittoor, Andhra Pradesh, where we train our to ensure we stay relevant and provide the best
workforce in various trades such as MEP, HVAC possible solutions to our clients.

56 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Projects

GIFT City to Give Wings to annually by 2047. In the next five years, broadband connectivity for all,”
Aircraft Leasing 50 more airports would be built. observed Mathew Oommen, Group
Additionally, the ten-year extension of CEO, Reliance Jio.” Airtel and Jio have
the UDAN would connect 40 million separately said they would offer
passengers and create 120 new Starlink services through their retail
destinations. As India’s first operational outlets and online. In Airtel’s case, this
smart city and an International is the second such partnership for
Financial Services Centre (IFSC), GIFT, satellite internet services in addition to
or Gujarat International Finance its existing alliance with the UK-based
Tec-City offers a business-friendly Eutelsat OneWeb.
environment with tax incentives and
At a time when India is looking to streamlined processes. India Approves Landmark
reduce the cost of aircraft leasing by up
Oil Exploration Bill
to 10 per cent, Ram Mohan Kinjarapu, Airtel, Jio Prep to
Union Minister for Civil Aviation, has
Roll Out Red Carpet for
said that as an emerging global
financial services centre, GIFT City
Musk’s Starlink
would significantly bolster India’s Telecom service providers Airtel and
ambition to emerge as a leading player Jio have announced agreements with
in aviation financing. “GIFT City will give Elon Musk-promoted SpaceX to
India’s aviation sector the further introduce Starlink’s high-speed internet
required confidence, commitment and services to India. The agreements inked
collaboration to develop a competitive by two rival players are subject to India, the world’s third-largest
aircraft leasing hub,” Naidu stated at SpaceX receiving regulatory approvals energy consumer, has approved the
the India Aircraft Leasing and Financing to offer Starlink’s lower earth orbit landmark Oilfields (Regulation and
Summit in Gandhinagar recently. The (LEO) satellite-backed services in the Development) Amendment Bill, 2024.
event was jointly organised by the country. India, the world’s second- Upon becoming law, it is expected to
Ministry of Civil Aviation and the largest telecom market with an open up fresh investments in the oil &
industry chamber FICCI, with support estimated 955 million internet users, is gas sector, strengthen investor
from the International Financial also one of the world’s most cut-throat. confidence, and accelerate the
Services Centre Authority (IFSCA). The Even as security experts flagged country’s journey toward energy
minister clarified that in promoting Gift concerns on sovereignty, the two self-sufficiency. Calling it a historic
City, the country was looking to companies are euphoric about the moment, Hardeep Singh Puri, Union
complement rather than compete with tie-ups. “This collaboration enhances Minister for Petroleum & Natural Gas,
the existing aviation financing centres. our ability to bring world-class high- said the changes reflect “current
Highlighting the importance of aircraft speed broadband to even the most realities, national priorities, promote
leasing in the world’s fastest-growing remote parts of India, ensuring that ease of doing business, decriminalise
aviation market, he added, “Fuelled by every individual, business, and provisions and align India’s exploration
the UDAN [regional connectivity] community has reliable internet. and production framework with
scheme and doubling of airports in ten Starlink will complement and enhance practices of competing geographies”.
years, India has become the third- Airtel’s suite of products to ensure Several provisions, such as security of
largest domestic aviation market in the reliable and affordable broadband for tenure and terms of contract of lease,
world.” He said a robust aircraft our Indian customers,” said Gopal Vittal, single lease for all hydrocarbons,
financing and leasing ecosystem would Managing Director & Vice Chairperson, provisions for comprehensive energy
help make the country globally Bharti Airtel. “Ensuring that every projects and sharing of infrastructure
competitive. “GIFT City represents a Indian, no matter where they live, has between operators, decriminalisation of
transformative opportunity to bring access to affordable and high-speed penal provisions and rationalisation of
home the values created by India’s civil broadband remains Jio’s top priority. penalties have been done as per
aviation industry.” He also outlined that Our collaboration with SpaceX to bring consultation with global and national oil
the government planned to build 350 Starlink to India strengthens our companies. Meanwhile, the states’
airports, including 34 mega airports commitment and marks a revenues from petroleum leases and
handling 20 million passengers transformative step toward seamless royalties have been retained.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 57

 Transport

DFCCIL’s Mahakumbh average of 72.62 freight trains operated landing (eVTOL) manufacturer, the
daily. In Kumbh 2019, this number rose ePlane Co. and Electric Take-off and
Achievement to 78.21 per day. However, freight train Landing Co. (ETAC) have signed an
operations during the 2025 agreement to offer urban air mobility
Mahakumbh more than doubled, with (UAM) services in India. The
the EDFC handling an impressive partnership seeks to fast-track the
149.45 freight trains per day between deployment of UAM solutions by
January 11 and February 26, the focusing on operational readiness,
period for the snan or holy dip in the vertiport infrastructure, and pilot
River Ganges.

A well-thought-out project can often IndiGo to Lease 3 More

have unintended benefits, and nowhere Norse Atlantic Aircraft
was this more evident than during the India’s largest airline by fleet and
recently concluded Mahakumbh, which market share has entered into another
witnessed the participation of more firm agreement with Norse Atlantic
than 630 million pilgrims, making it the Airways for the damp lease of three
largest gathering of humanity in one Boeing 787-9 aircraft. Arriving in India
place. During the 45-day event, the in the second half of 2025, these training. The three key areas of the
Dedicated Freight Corridor Corp. of aircraft will operate on IndiGo’s partnership include aircraft
India Ltd (DFCCIL) services played a long-haul international routes. The procurement, vertiport infrastructure,
silent yet important role. The DFCCIL move is part of the Gurugram- pilot training, and workforce
provided vital support to the Prayagraj headquartered carrier’s strategy to development. Beyond the initial
Division of Indian Railways by expand on international routes as agreement, both companies envision
successfully diverting 100 per cent of competition with the Tata group-owned further collaboration, including
freight traffic from the East Central Air India intensifies. IndiGo had signed maintenance, repair, and overhaul
Railway and North Central Railway to a firm damp lease agreement with (MRO) services, as well as innovating
the Eastern Dedicated Freight Corridor Norse Atlantic for one Boeing 787-9, commercial models for revenue-sharing
(EDFC). This strategic move relieved which is now deployed on the Delhi- across vertiport operations and pilot
congestion on adjacent zonal railways, Bangkok route. Pieter Elbers, CEO, training programmes. “As India’s first
ensuring the uninterrupted operation of IndiGo, said, “This [lease agreement] will company with a civil eVTOL aircraft in
Maha Kumbh Special trains on heavily help us make strategic inroads and certification, our vision extends beyond
saturated passenger routes. This establish the brand in the European manufacturing – we are building an
contribution by DFCCIL directly market. As we execute our broader entire ecosystem for sustainable urban
facilitated the efficient movement of strategy to strengthen and extend our air mobility,” said Prof. Satya
both passenger and freight trains, international network, we are steadily Chakravarthy, Founder, The ePlane
enabling millions of devotees from advancing towards our vision of Company. “This partnership with ETAC
across India and the world to reach becoming a global player by 2030, is a critical step toward making eVTOLs
Prayagraj smoothly. Given the scale of firmly rooted in India and driven by an integral part of India’s transportation
the Maha Kumbh this year, continuous expansion.” The initial term landscape.” Capt. Vinod Sanan, ETAC,
uninterrupted travel was a necessity, of the Agreement is six months, added, “With a focus on vertiport
and DFCCIL played a crucial role in extendable to up to 18 months, subject infrastructure in Gurugram and Noida,
ensuring it. In collaboration with the to regulatory approvals. Simultaneously, combined with ePlane’s advanced
Prayagraj Division, the EDFC team IndiGo and Norse will continue technology, we are set to accelerate
ensured the timely operation of freight exploring opportunities to contract India’s transition to safe, efficient, and
trains, guaranteeing the steady supply additional aircraft. In April last year, scalable aerial mobility.” In February, the
of essential commodities such as steel, IndiGo placed a firm order for 30 Airbus ePlane Co. entered into a non-binding
coal, fertilisers, and foodgrains during 350-900 widebody aircraft with an agreement with the air ambulance
the event. The freight train operations option for an additional 70 aircraft. service provider ICATT to supply 788 air
during Maha Kumbh 2025 significantly Deliveries are expected to commence ambulances in a deal worth over $1
surpassed previous Kumbhs. Notably, in 2027. billion. ICATT proposes to utilise the
the running of freight trains during the eVTOL ambulances to beat the traffic
Mahakumbh more than doubled ETAC, ePlane Co. Partner for congestions that are increasingly
compared to freight train operations
during the previous Kumbhs in 2013 eVTOL Operations commonplace in the world’s third-
Indian electric vertical take-off and largest automobile market.
and 2019. In the 2013 Kumbh, an

58 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Energy

India Sees Sharp Rise everyone at all times, and the largest energy event, in New Delhi in
government is aiming for 100 per cent February. The minister added that the
in Fossil, Non-Fossil electrification of households across the new energy order must be determined
Power Capacities country.” Khattar also highlighted that based on three factors: artificial
energy shortages had declined to 0.1 intelligence, clean cooking, and
per cent in 2025 from 4.2 per cent in balancing immediate challenges with
2014, with steps currently underway to long-term vision and resilient supply
address any remaining shortage. He chains for an orderly transition.
assured that the country is adequately Explaining the first point, Puri said that
prepared to avoid a power crisis during with data centre demand rising by up to
the peak summer months of the 20 per cent, AI was one of the largest
current year. Khattar added that energy consumers today. India’s
consistent efforts over the last ten AI-driven digital economy, projected to
years have resulted in annual energy reach $400 billion by 2030, presented
Indicating a growing demand for savings of 53 million tonnes of oil both an opportunity and a challenge.
electricity from a constantly expanding equivalent (MTOE) in 2024, leading to a “The real question is not how we will
consumer base, rising disposable corresponding reduction of 321 million meet this surge in demand, but how we
incomes, and increased economic tonnes of CO2 emissions. will do so without destabilising grids or
activity, India has registered a derailing climate commitments.” This,
significant increase in fossil and Energy justice essential to therefore, had to be addressed through
non-fossil power capacities. “The strategic investment across
fossil-based power capacity has global energy transition: Puri hydrocarbons and renewables. A smart
increased from 168 GW in 2014 to 246 Giving voice to an important reallocation of capital in areas such as
GW in January 2025, which shows an concern of the 77 developing nations of wind and solar where intermittency is
increase of around 46 per cent,” the Global South, Hardeep Singh Puri, manageable, biofuels where liquid fuel
informed Manohar Lal Khattar, Union India’s Minister for Petroleum & Natural demand persists, and gas where firm
Minister for Power, during a briefing in Gas, has said that even as the world power is essential would ensure both
New Delhi. “The non-fossil capacity has transitions to clean energy sources, affordability and decarbonisation.
increased from around 80 GW in 2014 ensuring energy justice must remain a
to around 220 GW in 2025 (as of priority with stakeholders. “Energy
justice must remain at the core of the IIFCL Inks Two Agreements
January 31), marking a 180 per cent
increase. In keeping with this growth in imminent transformation. A for Sustainable Infra
electricity demand, the transmission fragmented transition risks deepening Government-owned financier, the
network has also increased from inequality, leaving billions without India Infrastructure Finance Co. Ltd
291,000 circuit kilometres (ckm) in reliable energy while wealthier nations (IIFCL) has inked expressions of
2014 to 492,000 ckm in 2025.” surge ahead. If the transition is not just, interest (EoIs) with two international
Crediting various government initiatives it will not succeed because the political organisations to promote sustainability
for successfully reaching electricity to economy will not allow it,” Puri declared initiatives. The first EoI has been
poor communities, Khattar said, “It is during the inauguration of India Energy inked with the Climate Bonds
our goal to make power accessible to Week (IEW) 2025, the world’s second- Initiative (CBI), an international
organisation dedicated to mobilising
global capital for climate action.
This strategic collaboration aims to
FORM IV (RULES) promote financing for sustainable
STATEMENT BY THE PUBLISHER infrastructure projects in India and
(Statement about ownership and other particulars about the newspaper to be published
provide technical assistance and
in the first issue every year after the last day of February.) Registered name of Publication:
Infrastructure Today; Place of Publication: Mumbai (Maharashtra); Periodicity of publication: capacity development for IIFCL and its
Bi monthly; Name of Printer & Publisher: Tarun Pal; Address: A-303, Navbharat Estates, clients. The second EOI was inked with
Zakaria Bunder Road, Sewri (W), Mumbai - 400 015. Nationality: Citizen of India; Editor: the Global Infrastructure Basel (GIB)
Pratap V. Padode; Address: A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (W), Foundation, a Swiss foundation
Mumbai - 400 015. Nationality: Citizen of India; Owner addresses of individuals who own the
Newspaper or Partner or Shareholders holding more than one percent of the total capital:
promoting sustainable and resilient
Mr Pratap V. Padode; Mrs Falguni P. Padode. Gayatri Financial Services Pvt Ltd; First Infocenter infrastructure globally. This strategic
Pvt Ltd, A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (W), Mumbai - 400 015. collaboration seeks to support
I, Tarun Pal, hereby declare that the particulars given above are true to the best of my knowledge infrastructure projects, offering
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Signature of the Publisher services and conducting capacity-
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building activities.

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 59

 Projects & Tenders

Sr. Company Project Title / Details Location State Budget Contacts

No. Name (` Million)

1 IBM India IBM India has received an Multiple Multiple 2969.5 No.12, Subramanya Arcade,
order from Can Fin Homes for Bannerghatta Main Road,
Supply, Implementation and Bengaluru-560029, Karnataka.
Maintenance of Core Business [email protected]
Solution, Infrastructure and Security
Solution. The project is value of Rs
296.95 crore for entire contract
period of 7 years.

2 Bharat The Ministry of Defence has signed Multiple Multiple 12201.2 Anandi Ramalingam, Director
Electron- a contract with Bharat Electronics (Marketing), Outer Ring Road,
ics (BEL) (BEL), Bengaluru for procurement of Nagavara, Bangalore - 560045,
149 Software defined radios for Karnataka. T: 080-25039300,
Indian Coast Guard at a total cost of [email protected] (M V
Rs 1220.12 crore under Buy Gowtama, Chairman & Managing
(Indian-IDDM) category. Director)

3 Hyderabad The Telangana govt is considering Hyderabad Telangana NA Project Director & Special
Metropoli- plans to set up two new IT parks on Collector Outer Ring Road
tan the lines of HITEC City on the Project/Chief Engineer,
Develop- outskirts of Hyderabad, Telangana D Block ‘A’, District Commercial
ment Sridhar Babu, IT & industries minister, Complex, Tarnaka, Hyder-
Authority said. On the proposed IT parks, the abad-500007, Telangana.
(HMDA) minister stated that a detailed study T: 040-27002746, 27014060,
is underway to ascertain the best F: 040-27002745/27001880,
locations for them and the extent of [email protected], ce@hmda.
land they would require. gov.in, [email protected],
[email protected]

4 RailTel RailTel Corporation of India has Multiple Multiple 1003.3 J.S. Marwah, Company
Corpora- awarded Rs 100.33 crore contract Secretary, Plate-A, 6th Floor,
tion of for setting up a data centre (DC) and Office Block, Tower-2,
India disaster recovery (DR) centre, with a East Kidwai Nagar, New
contract duration of four months for Delhi-110023, Delhi.
implementation plus six years of T: 11-22900600, F: 011-2290069,
service. [email protected], www.
railtelindia.com (Sh. Sanjai
Kumar, Director ((Network
Planning & Marketing) and
(Project, Operations & Mainte-
nance - Additional Charge))

5 RailTel RailTel Corporation of India has Multiple Multiple 1041.6 J.S. Marwah, Company
Corpora- awarded Rs 104.16 crore contract Secretary, Plate-A, 6th Floor,
tion of for IT network restructuring across Office Block, Tower-2,
India nine plants and three offices, East Kidwai Nagar, New
upgrading to the latest technology Delhi-110023, Delhi. T: 11-
from Maharashtra State Power 22900600, F: 011-2290069,
Generation Company (MSPGCL). [email protected], www.
railtelindia.com (Sh. Sanjai
Kumar, Director ((Network
Planning & Marketing)
and (Project, Operations &
Maintenance - Additional
Charge))

60 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

 Projects & Tenders

Sr. Company Project Title / Details Location State Budget Contacts

No. Name (` Million)

6 RailTel RailTel Corporation of India has Noida Uttar 171.2 J.S. Marwah, Company
Corpora- received the work order from Pradesh Secretary, Plate-A, 6th Floor,
tion of Navodaya Vidyalaya Samiti for Office Block, Tower-2, East
India procurement & maintenance of IT Kidwai Nagar, New Delhi-110023,
Infrastructure projects amounting to Delhi. T: 11-22900600,
Rs.17.12 crore. F: 011-2290069,
[email protected], www.
railtelindia.com (Sh. Sanjai
Kumar, Director ((Network
Planning & Marketing) and
(Project, Operations & Mainte-
nance - Additional Charge))

7 Srinagar As the second month of 2025 Srinagar Jammu 9400 Chief Engineer, 1st Floor,
Smart City unfolds, officials from Srinagar and Budshah Building, Lal Chowk,
(SSCL) Smart City (SSCL) have reported Kashmir Srinagar-190001, Jammu &
significant progress in the imple- Kashmir. T: 0194-2455370,
mentation of the Smart City [email protected]
projects. Of the total 161 projects
under the initiative, 143 have already
been completed, with work continu-
ing on the remaining 18 projects.

8 Reliance MukeshAmbani-owned Reliance Jamnagar Gujarat NA Janesh Kumar-Design &

Industries Industries is planning to build the Engineering (BESS & Solar),
world’s largest data centre in India. Maker Chambers - IV, Nariman
The ambitious project will be located Point, Mumbai-400021, Maha-
in Jamnagar, Gujarat, marking rashtra. T: 022-35555000, info@
another step in Reliance’s push to ril.com, www.ril.com
fray into the artificial intelligence (AI)
landscape in India.

9 CtrlS CtrlS Datacenters plans to set up a Hyderabad Telangana NA 16, Software Units Layout,
Datacen- new Datacenter Park on a 40-acre Madhapur (Hitech-City),
ters land parcel at the upcoming Hyderabad-500081, Telangana.
Chandanvelly Industrial Park near T: 040-42030700, F: 040-
Hyderabad. The 40-acre campus, 23116055, [email protected]
with a potential IT load capacity of
over 600 MW, represents a substan-
tial investment in Hyderabad's
datacenter landscape, which
presently has an estimated 52 MW
operational capacity.

10 RailTel RailTel Corporation of India has Multiple Chhattish- 94.4 J.S. Marwah, Company Secre-
Corpora- received the work order from garh tary, Plate-A, 6th Floor, Office
tion of Chhattishgarh Environment Block, Tower-2, East Kidwai
India Conservation Board (CECB) for Nagar, New Delhi-110023, Delhi.
Project amounting to Rs.9.44 crore. T: 11-22900600, F: 011-2290069,
[email protected], www.
railtelindia.com (Sh. Sanjai
Kumar, Director ((Network
Planning & Marketing) and
(Project, Operations & Mainte-
nance - Additional Charge))

www.InfrastructureToday.co.in February-March 2025 | Infrastructure Today | 61

 Projects & Tenders

Sr. Company Project Title / Details Location State Budget Contacts

No. Name (` Million)

11 Exicom Exicom Tele-Systems has success- Multiple Uttar 14124.8 Plot No 38, Institutional Area,
Tele-Sys- fully secured an Advance Purchase Pradesh Sector 32, Gurugram-122001,
tems Order (APO) aggregating to Haryana. T: 0124-6615200,
Rs1412.48 crore (inclusive of [email protected]
applicable taxes), for the supply of
Telecom equipment (Power
Systems & Racks) alongwith the
maintenance of these Telecom
equipment for a period of 10 years,
for BharatNet Phase III project in
Uttar Pradesh (East) Telecom circle
and Uttar Pradesh (West) Telecom
circle, from Rail Vikas Nigam
(RVNL).

12 HFCL HFCL has secured advance Multiple Uttar 21676.5 8, Commercial Complex, Masjid
purchase orders (APOs) aggregating Pradesh Moth, Greater Kailash II, New
to Rs 2,167.65 crore from Rail Vikas Delhi-110048, Delhi. T: 011-
Nigam (RVNL). This contract, award- 35209400/9500, F: 011-
ed under the Phase III of BharatNet, 35209525, [email protected]
involves the supply of optical fibre
cables, telecom equipment, and
related accessories along with 10
years of annual maintenance,
including a one-year warranty
period.

13 JJIKA JJIKA Smart Installation Systems Pune Maharash- NA 1302-1305, 13th Floor, Kamd-
Smart has landed a key contract to develop tra henu 23 West, TTC Industrial
Installa- critical infrastructure for a 50 MW Area, MIDC Industrial Area,
tion data centre in Pune, Maharashtra. Thane Belapur Road, Pawne,
Systems The project which is commissioned Navi Mumbai-400705, Maha-
by a multinational firm, focuses on rashtra. M: 09320048251,
JIKA’s strong reputation in delivering [email protected]
reliable, scalable solutions in the
data centre industry.

14 Lucknow The Lucknow Municipal Corporation Lucknow Uttar 60 Triloknath Road, Lalbagh,
Municipal has approved Rs 6 crore for the Pradesh Lucknow-226001, Uttar Pradesh.
Corpora- restoration of three gates of the T: 0522-
tion ChhotaImambara under the Smart 2307770/2307782/2307783,
City Project. The project will begin [email protected]
soon. Additionally, encroachments
and illegal parking in the Husain-
abad area will be addressed.

15 Madhya The proposed Information Technol- Ujjain Madhya 480 Rajesh Rathod, Executive
Pradesh ogy Park in Ujjain is planned to be Pradesh Director, 21, Arera Hills, Bho-
Develop- developed as a plug and play facility pal-462011, Madhya Pradesh.
ment and will be allocated on rental and T 0755-2575618, 2571830,
Corpora- lease basis to technology firms and [email protected]
tion startups. Approximately 30 IT
(MPIDC) industries are anticipated to operate
in the park, generating an estimated
direct employment of 500 positions
and exceeding 1,000 indirect jobs.

62 | Infrastructure Today | February-March 2025 www.InfrastructureToday.co.in

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