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India’s infrastructure spend will double in the next seven years (FY24 to FY30) to ₹ 142.9 lakh crore from ₹ 66.7 lakh crore in the last seven years, according to CRISIL Market Intelligence & Analytics (MI&A).
Within the infrastructure space, spending towards energy will be the largest component (39.1 per cent), followed by road (37.3 per cent), railways (25.6 per cent), urban infra (18.9 per cent), other infra (15 per cent) and surface transport (7 per cent), per MI&A’s assessment.
Government spending will dominate in segments such as roads, railways, urban infrastructure, and other infrastructure. Private spending will dominate in segments such as power and industrial.
Green investments
There will be a 5-fold surge in green investments in the power segment to ₹ 30.3 lakh crore in the next seven years vis-a-vis ₹ 6.6 lakh crore in the preceding seven years.
Further, there will be a 10.5 times surge in green investments in the surface transport segment to ₹ 6.3 lakh crore in the next seven years vis-a-vis ₹ 60,000 crore in the preceding seven years.
In the next seven years, debt will contribute about ₹ 27.4 lakh crore (or 75 per cent) in green financing vis-a-vis about ₹ 5.69 lakh crore (or 79 per cent per cent) in the preceding seven years.
Within the power segment, green investments in the next seven years will the highest in the non-fossil fuel sub-segment (comprising hydro, nuclear, solar, wind and other renewables) to ₹ 22.4 lakh crore (₹ 5.9 lakh crore in the preceding seven years), followed by Grid (power transmission with renewable energy integration and power loss reduction works) at ₹ 3.9 lakh crore ( ₹ 30,000 crore), Efficiency (FGD investments, smart metering and other power network efficiency measures) at ₹ 2.6 lakh crore (₹ 40,000 crore), Hydrogen (production of green hydrogen and electrolyser manufacturing) at ₹ 1.5 lakh crore (nil).
Electric mobility
Within the surface transport segment, green investments in the next seven years will be the highest in the infrastructure relating to battery manufacturing and charging stations at ₹ 3.7 lakh crore (nil in the preceding seven years), Optimisation (investments in ethanol and CNG stations) at ₹ 1.1 lakh crore (₹ 50,000 crore), and Auto value chain at ₹ 40,000 crore (₹ 10,000 crore).
Non-fossil fuel sub-segment (comprising hydro, nuclear, solar, wind and other renewables) to ₹ 22.4 lakh crore (₹ 5.9 lakh crore in the preceding seven years), followed by Grid (power transmission with renewable energy integration and power loss reduction works) at ₹ 3.9 lakh crore (₹ 30,000 crore), Efficiency (FGD investments, smart metering and other power network efficiency measures) at ₹ 2.6 lakh crore (₹ 40,000 crore), Hydrogen (production of green hydrogen and electrolyser manufacturing) at ₹ 1.5 lakh crore (nil).
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