India's Interim Budget Paves the Way for Massive Infrastructure Growth and Renewable Energy Expansion

Indian Growth Sectors

In the recently announced interim budget, a significant increase in the outlay for infrastructure to Rs.11.11 lakh Crores for the upcoming financial year has been proposed which is an 11% increase over the last year accounting for around 3.4% of the total GDP of India. 

The swift development of nationwide infrastructure is turning every region into an active contributor to the expanding economy and the spending is expected to further increase in coming few years. 

The Indian government has been promoting investment in the renewable energy, especially in the hydro power sector to achieve a balanced energy mix and reduce dependence on fossil fuels. Hydro power plays a pivotal role in the integration of renewable energy into the national grid providing grid stability, peak load management and energy storage capabilities. 

The country has set a target at the COP 26 of achieving 500 gigawatt of non fossil fuel based energy by 2030. This is the world's largest expansion plan in the renewable energy. The installed renewable energy capacity including large hydro has increased by around 128% since 2014. 

Hydro power currently accounts for around 47 gigawatt which is about 11% of the total installed power capacity in India. Around 27,000 megawatt of hydro power projects are expected to be announced in the coming few years. These projects are currently at various stages of survey and investigation and under final clearance stage. The government has also increased its focus on hyrdro pumped storage projects. PSPs will help integrate intermittent Renewable Energy with the Grid. 

The government has taken various steps recently in order to ensure that PSPs gets commissioned on a fast track thereby accelerating the growth of India's renewable energy capacity. As per the ministry update there are 39 hydro PSPs of 47 gigawatt to be commissioned by the year 2029 – 30. Tunnel construction offers a significant opportunity for contractors. 

There is a huge pipeline of at least 875 tunnels, spanning a length of around 2,600 km. So now coming to irrigation and water segment, the aim is to provide water supply to all households in the next few years through schemes like the Jal Jeevan Mission. In the interim budget there has also been allocation of around Rs.70,000 Crores for the Jal Jeevan Mission so we see huge potential in the coming few years in all segments of infrastructure development and especially in power, water and tunneling sector.

Indian companies involved in the hydro power sector:

• NHPC Limited
• SJVN Limited
• NTPC Limited (which also has hydro power projects)
• Satluj Jal Vidyut Nigam Limited (SJVNL)
• Tehri Hydro Development Corporation (THDC India Limited)
• National Hydroelectric Power Corporation (NHPC)
• Karnataka Power Corporation Limited (KPCL)
• Andhra Pradesh Power Generation Corporation Limited (APGENCO)
• Kerala State Electricity Board (KSEB)
• Himachal Pradesh Power Corporation Limited (HPPCL)
• Gati Infrastructure Limited
• Greenko Energies Private Limited
• Indowind Energy Limited
• Jindal Power Limited
• KNR Constructions Limited
• Lanco Infratech Limited
• Madhya Bharat Agro Products Limited
• PTC India Financial Services Limited
• Reliance Power Limited
• Suzlon Energy Limited

These companies are either directly involved in hydro power generation or have significant stakes in hydro power projects across India.

Indian companies involved in infrastructure development and construction:

• Larsen & Toubro Limited (L&T)
• Reliance Infrastructure Limited
• Hindustan Construction Company Limited (HCC)
• Dilip Buildcon Limited
• IRB Infrastructure Developers Limited
• NCC Limited
• GMR Infrastructure Limited
• Sadbhav Engineering Limited
• Patel Engineering Limited
• Ashoka Buildcon Limited

These companies are renowned for their involvement in various infrastructure projects such as roads, bridges, airports, railways, and urban infrastructure development across India.