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Below the Reaction on Infrastructure Sector by Sandeep Upadhyay, Managing Director - Infrastructure, Centrum Capital

The Union Budget 2025 has reinforced the government’s commitment to accelerating infrastructure development by focusing on progressive policy measures to attract more private sector investments. A key highlight is the specific asset monetization plan for 2025-30, aimed at infusing Rs.10 lakh crore into new projects. This initiative is expected to enhance much-needed equity investments, boosting overall sectoral growth.

While roads and highways have led the way in successful PPP (Public-Private Partnership) execution, the sector has witnessed a 60% expansion in the national highway network over the past decade, drawing investments from leading sovereign and pension funds. The Finance Minister’s emphasis on encouraging states to leverage the India Infrastructure Project Development Fund (IIPDF) to develop PPP proposals is a refreshing move that could further expand the PPP framework beyond highways.

Another major announcement is the Rs.25,000 crore Maritime Development Fund, structured with 49% government support and the remainder mobilized by ports and the private sector. As a dedicated maritime economy fund, this initiative is expected to fuel shipping and shipbuilding projects under BOT (Build-Operate-Transfer) and HAM (Hybrid Annuity Model) frameworks, strengthening private sector participation.

With these strategic interventions, Budget 2025 lays a robust foundation for long-term infrastructure growth, creating a more investment-friendly ecosystem while ensuring sustainable development across key sectors.

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