The four-priority links are just the beginning of the decade-long plan of the ILR project implementation. While the share of these projects as a percentage of budgetary allocation to the ministry is currently minimal, at ~5% i.e. Rs. 3,908 crores, it is expected to increase as more projects get approval and awarding/construction gains momentum. Being 60% funded by the Central Government, the counterparty risks and funding risks for these projects are largely mitigated, though the balance 40% exposure to state government finances could be an overhang”.
While the Parbati Kalisindh Chambal and the Godavari-Cauvery links are in advance stages of finalization of the detailed project reports, consensus building among states remains critical for timely implementation of these projects. ICRA anticipates the Parbati Kalisindh and Godavari-Cauvery projects to start from FY2028 and FY2029, respectively, based on the current status of the projects.
The Ken Betwa and Kosi Mechi projects are expected to lay the foundation for the implementation of these larger and more complex projects. With the announcement of the financial support of Rs. 11,500 crore towards various flood control and irrigation projects for Bihar in the FY2025 Union Budget, we expect the Kosi Mechi to start contributing to the order book in the next 12-15 months.
