The author, Shivam Bajaj, founded Avener Capital, a financial services firm and business accelerator, in 2018 in Mumbai. Shivam has led a number of marquee transactions including GIC’s Investment into IRB Infrastructure Trust (raising Rs 4,400 crore in equity), Ferrovial and GIC’s investment into IRB Infrastructure (the largest equity fundraising for an Indian Infrastructure HoldCo at Rs 5,437 crore).
India’s finance minister Nirmala Sitharaman, while presenting Budget 2025, on Saturday, announced that all infrastructure ministries in India will identify and come up with a list of projects that can be developed under the Public Private Partnership (PPP) model in the next three years.
The emphasis on the PPP model to finance and execute the development of the infrastructure sector—atomic energy, civil aviation, telecommunications, renewable energy, power, roads, rural development, ports, housing & urban affairs and railways—will create new avenues for companies to raise funds through equity, M&As, and public listings.
Roads & highways has been at the forefront of successful PPP execution, with the national highway network expanding by 60% in the past decade, attracting investments from prominent sovereign wealth funds and pension funds.
The government’s push for states to utilise the India Infrastructure Project Development Fund (IIPDF) to create more PPP proposals could help extend the PPP model to other sectors beyond highways.
With these strategic measures, Budget 2025 aims to establish a solid foundation for sustained infrastructure growth in India, fostering a more investment-friendly environment across critical sectors.
These measures highlight the government’s plan to prioritise infrastructure growth through strategic policies designed to attract significant private sector investment and drive long-term progress.
A standout feature of Budget 2025 is the targeted asset monetisation plan for 2025-30, which aims to inject Rs10 lakh crore ($120 billion) into new projects. This initiative is set to channel vital equity investments, accelerating growth and advancing the country’s infrastructure capabilities.
A surge in capital expenditure can significantly swell infra companies’ order books thereby prompting them to seek funding through equity sales. In addition, the capex will boost PPP in infrastructure, thus boosting M&A activities in the infra sector.
A surge in capital expenditure can significantly swell infra companies’ order books thereby prompting them to seek funding through equity sales.
Beside this, the government’s decision to allow the National Bank for Agriculture and Rural Development (NABARD) to provide partial credit enhancement facility in infrastructure sector will help make projects bankable.
Moreover, the government’s announcement in the Budget to provide incentives for intra-state transmission capacity and energy distribution changes will greatly improve the nation’s power firms’ efficiency and financial stability.
Nuclear Energy
The Nuclear Energy Mission, with its ambitious goal of achieving 100 GW of nuclear capacity by 2047 and promoting private sector involvement, represents a major step toward a cleaner and more resilient energy future.
The emphasis on Small Modular Reactors (SMRs) will further drive innovation in sustainable energy generation. We are also pleased to learn that the government is simplifying the approval process for company mergers, fostering private sector participation.
To support this, the Centre plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.
Furthermore, the government has also announced that it will strive to ensure that at least five domestically constructed reactors are to be operational by 2033, and Rs 20,000 crore ($2.3 billion) will be allocated for R&D in small modular reactors.
Overall, the Budget seems to be aimed at accelerating economic growth by channelising private investments.
