Rs 2 Lakh Crore Opportunities in EPC Sector with ILR Projects: ICRA Report

ICRA projects Rs 2 lakh crore opportunities for EPC firms with the completion of four priority ILR projects over the next decade. Approximately Rs 80,000 crore is expected to be awarded in the next four years. The Ministry of Jal Shakti's budget exceeds Rs 78,000 crore, driven by Jal Jeevan Mission funding.

Emerging business opportunities worth Rs 2 lakh crore are anticipated for engineering, procurement, and construction (EPC) firms over the next decade, driven by four priority interlinking river (ILR) projects, according to an ICRA report. It is projected that roughly Rs 80,000 crore will be awarded within the next four years to companies engaged in large-scale irrigation projects.

The National Water Development Agency (NWDA) has outlined 30 ILR projects, featuring 16 peninsular river links and 14 Himalayan river links. These projects are set to receive joint funding from both central and state governments. Recent years have seen the central government's increased focus on the water sector.

The ICRA report underscores this focus, noting a marked rise in the Ministry of Jal Shakti’s budget, surpassing Rs 78,000 crore for 2024-25, largely due to considerable funding for the Jal Jeevan Mission. Chintan Lakhani, Vice President and Sector Head - Corporate Ratings at ICRA, stated, "The four priority links are just the start of the ILR project's decade-long execution plan. Currently, these projects represent a small fraction, 5 percent (Rs 3,908 crore) of the ministry's budget, but this is expected to grow as additional projects receive approval and construction picks up pace."

The NWDA has prioritized the Ken-Betwa, Kosi-Mechi, Parbati-Kalisindh-Chambal, and Godavari-Cauvery projects for early implementation. ICRA estimates that the total cost to complete these priority links will reach Rs 2.6 lakh crore by 2034-35.

The Godavari-Cauvery link stands out as the largest project, accounting for 45 percent of the total project cost, while the Kosi-Mechi link is the smallest at 4 percent. The Ken-Betwa project, which represents 21 percent of the priority links' costs, is already in the implementation phase. (ANI)