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ICRA in its latest report has said that business opportunities worth Rs 2 lakh crore are expected to emerge for engineering, procurement, and construction (EPC) entities over the next decade, with the completion of four priority interlinking river (ILR) projects. It stated approximately a third of this value (around Rs 80,000 crore) is projected to be awarded over the next four years to companies involved in large-scale irrigation projects.

The National Water Development Agency (NWDA) has identified 30 ILR projects, comprising 16 peninsular river links and 14 Himalayan river links, to be jointly funded by the central and state governments. The central government’s focus on the water sector has increased significantly in recent years. ICRA highlighted this focus, noting a substantial rise in the budgetary allocation to the Ministry of Jal Shakti (MoJ), surpassing Rs 78,000 crore in 2024-25 (revised budget estimates), largely driven by significant 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 beginning of the ILR project’s decade-long implementation plan. While the current share of these projects in the ministry’s budget is minimal, at 5 per cent (i.e., Rs 3,908 crore), it is expected to increase as more projects are approved and construction gathers momentum.’

The NWDA has prioritised four projects–Ken-Betwa, Kosi-Mechi, Parbati-Kalisindh-Chambal, and Godavari-Cauvery–for early implementation. ICRA estimates that these priority links will be completed at a cost of Rs 2.6 lakh crore by 2034-35. Besides, it said the Godavari-Cauvery link is the largest of the four (accounting for 45 per cent of the total project cost), while the Kosi-Mechi link is the smallest (at 4 per cent). The Ken-Betwa project, which represents 21 per cent of the cost of the priority links, is already under implementation.