Interlinking Rivers (ILR) to Boost Business

25 Sep 2024 CW Team

Four Priority Projects:

The Godavari-Cauvery link is the largest, representing 45% of total expenditure, followed by the Ken-Betwa link, accounting for 21%. Other notable projects include the Kosi-Mechi and Parbati-Kalisindh-Chambal links. These projects are expected to form the backbone of a decade-long ILR plan, starting with ?3,908 crore allocated from the Ministry of Jal Shakti’s budget. The total expenditure for the top four priority projects by FY35 is projected at ?2.6 lakh crore, marking significant infrastructural development in India's water management sector. Business Opportunities for EPC:

EPC companies will benefit from the large-scale irrigation developments, and with 60% of funding from the central government, financial risks are mitigated. Challenges remain, particularly with the remaining 40% reliance on state government finances, which could slow down project execution. ILR projects are expected to commence gradually, with the Parbati-Kalisindh-Chambal and Godavari-Cauvery links likely starting by FY28-FY29. Government Focus on Water Sector:

The Ministry of Jal Shakti’s budget for FY25 has increased to Rs.78,000 crore, with a continued focus on the Jal Jeevan Mission, which has seen a 69% growth rate over the past six years. The government’s growing involvement in water infrastructure promises sustained development and funding for ILR projects. With consensus-building between states being crucial, ILR projects like Ken-Betwa and Kosi-Mechi will lay the groundwork for more complex projects, helping drive India’s economic growth and water resource management.

India’s ambitious Interlinking of Rivers (ILR) projects could present Rs.2 lakh crore worth of business opportunities for engineering, procurement, and construction (EPC) companies over the next four years, according to ICRA. Four key priority river links are set to generate significant economic growth, with ?80,000 crore directed toward large-scale irrigation projects. Four Priority Projects: The Godavari-Cauvery link is the largest, representing 45% of total expenditure, followed by the Ken-Betwa link, accounting for 21%. Other notable projects include the Kosi-Mechi and Parbati-Kalisindh-Chambal links. These projects are expected to form the backbone of a decade-long ILR plan, starting with ?3,908 crore allocated from the Ministry of Jal Shakti’s budget. The total expenditure for the top four priority projects by FY35 is projected at ?2.6 lakh crore, marking significant infrastructural development in India's water management sector. Business Opportunities for EPC: EPC companies will benefit from the large-scale irrigation developments, and with 60% of funding from the central government, financial risks are mitigated. Challenges remain, particularly with the remaining 40% reliance on state government finances, which could slow down project execution. ILR projects are expected to commence gradually, with the Parbati-Kalisindh-Chambal and Godavari-Cauvery links likely starting by FY28-FY29. Government Focus on Water Sector: The Ministry of Jal Shakti’s budget for FY25 has increased to Rs.78,000 crore, with a continued focus on the Jal Jeevan Mission, which has seen a 69% growth rate over the past six years. The government’s growing involvement in water infrastructure promises sustained development and funding for ILR projects. With consensus-building between states being crucial, ILR projects like Ken-Betwa and Kosi-Mechi will lay the groundwork for more complex projects, helping drive India’s economic growth and water resource management.

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