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₹100 Billion Opportunity for EPC Players in Namami Gange Programme: ICRA

ICRA

₹100 Billion Opportunity for EPC Players in Namami Gange Programme: ICRA

The Namami Gange Programme (NGP) in India presents a significant growth opportunity for the construction sector, with an estimated pending outlay of ₹150 billion. Launched in 2014, the NGP aims to revitalize the Ganga and its tributaries and is now in its second phase with an approved outlay of ₹225 billion until March.

2026 The initiative is backed by a $400 million World Bank credit line and private sector participation through PPP models and CSR initiatives. As of January 31, 2025, 492 projects worth ₹401.2 billion have been launched, with 307 operational. Sewage infrastructure accounts for the largest share of funding, with 206 projects.

Danctioned for ₹330 billion, of which 127 are completed. Despite strong government backing and rising budget allocations, the NGP faces land acquisition delays, approval hurdles, and compliance issues. With lower competition than road, railway, and metro contracts, EPC players stand to benefit.

The programme’s sunset date of March 2026 may be extended, providing sustained opportunities for the next 2.5-3 years. ​The Namami Gange Programme (NGP), initiated by the Government of India in June 2014, aims to rejuvenate the Ganga River and its tributaries through pollution abatement and ecological restoration. Initially allocated ₹20,000 crore until March 2021, the programme has been extended to March 2026 with an additional ₹22,500 crore, bringing the total outlay to ₹42,500 crore.

As of January 31, 2025, 492 projects have been sanctioned under the NGP, with an estimated cost of ₹40,120 crore. Among these, 307 projects are fully operational, including 127 completed sewage infrastructure projects aimed at reducing pollution and treating wastewater. ​

According to a recent report by ICRA, the NGP presents a significant business opportunity worth ₹10,000 crore for Engineering, Procurement, and Construction (EPC) companies. This substantial investment is expected to stimulate growth in the construction sector, offering lucrative contracts for firms specializing in water infrastructure. ​

Despite these advancements, challenges remain. A report by PRS Legislative Research indicates that only 69% of the allocated funds had been utilized up to 2024-25, highlighting issues in fund absorption and project execution. Additionally, the Central Pollution Control Board has noted that industrial waste continues to be a significant pollutant, with over 450 industries failing to meet pollution norms.

In conclusion, the Namami Gange Programme offers a substantial ₹10,000 crore opportunity for EPC players, reflecting the government’s commitment to river rejuvenation and infrastructure development. However, addressing challenges related to fund utilization and pollution control remains crucial for the programme’s overall success.​

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​The Namami Gange Programme (NGP), launched by the Government of India in June 2014, aims to rejuvenate the Ganga River and its tributaries. Initially allocated ₹20,000 crore until March 2021, the programme has been extended to March 2026 with an additional ₹22,500 crore, totaling ₹42,500 crore. ​

As of January 31, 2025, 492 projects have been sanctioned under the NGP, with an estimated cost of ₹40,120 crore. Among these, 307 projects are fully operational, including 127 completed sewage infrastructure projects aimed at reducing pollution and treating wastewater. ​

According to a recent report by ICRA, the NGP presents a significant business opportunity worth ₹10,000 crore for Engineering, Procurement, and Construction (EPC) companies. This substantial investment is expected to stimulate growth in the construction sector, offering lucrative contracts for firms specializing in water infrastructure. ​

Despite these advancements, challenges remain. The pace of project execution is critical, especially with the programme’s sunset date approaching in March 2026. Given the current execution pace and remaining is likely to be extended, presenting a sizeable opportunity for EPC players over the next 2.5 to 3 years. ​

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