Tata Projects Integrated Annual Report 2023 - 2024
25 Years of India’s Infrastructure Development
Unleashing Our True Potential
The infrastructure sector is expected to experience robust and unparalleled growth in the coming years. As a result, the infrastructure industry is poised to boost the economy through industrial expansion and job creation, enhance the overall quality of life, and strengthen India’s position in the global market.
From Temples of Modern India to Infrastructure Boom: A Look at India’s Infrastructure Evolution
India’s infrastructure journey, marked by iconic projects like the Bhakra Nangal Dam, has evolved significantly. In the pre-and early post-independence periods, the country focused on large-scale projects like dams and irrigation canals,
deemed 'temples of modern India' vital for agriculture and power generation. However, broader infrastructure investment, including roads, railways, and ports, was limited due to prioritising basic needs such as food security, poverty
alleviation, and resource constraints.
Economic liberalisation in the early 1990s aimed to boost growth, but poor infrastructure—bad roads, congested ports, and an unreliable power grid—became significant bottlenecks. During this period, logistics costs in India were
notably higher than the global average, hovering around 13-14% of its GDP, as highlighted by the World Bank. This significantly impeded the country’s economic advancement.
By the late 1990s, the Government recognised the need for change, making increased infrastructure spending a key economic strategy. Since then, India has significantly pushed infrastructure development, focusing on improving national
connectivity.
Over the past 25 years, India has embarked on a journey of infrastructural revolution, heavily investing in modernising its transportation frameworks. To bridge the funding gap, the Government actively promotes Public-Private
Partnerships (PPP) models for infrastructure projects. A prime example of this is the Golden Quadrilateral project, one of the largest highway projects globally, which has markedly enhanced road connectivity across the country.
Twenty-five years ago, Kolkata had India’s only metro system. Now, 15 cities, including Delhi, Mumbai, and Bangalore, have operational metro networks. Future plans include expanding metro services to 20 additional cities, focusing
on tier-2 cities like Patna and Indore, aiming to improve urban connectivity and sustainability.
Railways have witnessed equally impressive modernisation, with the introduction of high-speed trains and dedicated freight corridors significantly boosting rail freight capacity and efficiency. The Dedicated Freight Corridor Corporation
of India (DFCCIL) played a pivotal role in this transformation, reducing transit times and operational costs. Indian Railways is set to achieve 100% electrification of its broad-gauge network. This milestone will make Indian Railways
the largest green railway network in the world, with many regions in India already fully electrified.
Port infrastructure has also experienced a paradigm shift, adopting advanced technologies and automated processes. According to data from the Ministry of Shipping, there was a substantial increase in cargo handling capacity, with
container throughput escalating from about three million twenty-foot equivalent units (TEUs) in the late 1990s to over 15 million TEUs by 2024.
This infrastructural progress has had a profound impact on reducing logistics costs, which, according to industry reports, have declined to approximately 9-10% of GDP. This reduction has not only enhanced the competitiveness of
Indian products on the global stage but also attracted foreign direct investment, fuelling economic growth.
India’s infrastructure story is one of transformation. From a limited focus on large projects to a comprehensive approach aimed at improving connectivity, the country has come a long way. While challenges remain, India’s commitment
to infrastructure development continues to be a key driver of its economic growth and social progress.
Infrastructure – A Catalyst for Development
Infrastructure development plays a vital role in driving a country’s economic growth and progress.
A strong and well-connected network of roads and transportation, reliable power and water infrastructure, and advanced communication systems are all fundamental to industrial growth and capital investment.
Infrastructure investment in India has grown significantly since 2000. The World Bank estimates that infrastructure investment as a percentage of GDP has more than doubled, rising from around 5% in 2000 to over 11% in recent years. Additionally, the country’s exponential economic growth has led to an increased need for further infrastructure development.
National infrastructural development programmes play a crucial role in this regard. The National Highway Development Programme, National Infrastructure Pipeline (NIP), and PM GatiShakti National Master Plan are a few examples.
The NIP is an ambitious initiative to invest massive capital across various sectors, such as roadways, railways, urban development, and energy. By prioritising infrastructure development, it aims to achieve a $5 Trillion economy and make the nation self-reliant.
The PM GatiShakti National Master Plan is a pioneering initiative of the Indian Government that aims to provide multimodal connectivity infrastructure to various economic zones. This will be driven by NIP, with a target expenditure of over $1.8 Trillion by 2025.
Growing Need for Sustainable Infrastructure
In the face of global climate change and the urgent call to decarbonise economies, nations must prioritise infrastructure solutions for future societies. As India progresses towards Net Zero carbon emissions, the next 25 years demand a reimagined approach to infrastructure development to enhance citizens’ quality of life amidst growing population, urbanisation, and demand.
India is committed to achieving Net Zero by 2070, with actionable targets for 2030. These include reducing carbon intensity by 45%, installing 50% renewable electric power, and reaching 500 GW of renewable energy capacity. As of April 2024, India has 192 GW of renewable capacity, comprising wind, solar, biomass, small hydro, waste-to-energy, and large hydro sources. The country added 17 GW of capacity in 2023, with over 13.5 GW being non-fossil additions.
Despite challenges, including a reliance on coal, India is making strides in energy transition. Renewable energy remains at the forefront, with 2024 expected to see the highest capacity additions, driven by falling module costs and tender backlog. Hybrid renewable tenders are on the rise, along with stand-alone storage tenders to balance variable generation. ‘Greening the Grid’ remains a primary focus, with efforts to enhance renewables central to India’s climate policy. Additionally, the Government’s PM Surya Ghar Muft Bijlee Yojana aims to provide free rooftop solar electricity to one crore households.
Green hydrogen is gaining traction, with projects expected to take off soon. Regulatory mandates in refining and fertiliser sectors are anticipated to drive domestic demand. India aims to produce 5 million tonnes of green hydrogen by 2030 and become a green hydrogen exporter using ammonia as the carrier molecule. Pilot projects are underway, with guidelines released for green hydrogen hub development.
Biofuels are also pivotal in India’s decarbonisation efforts, with ethanol blending rates in gasoline set to increase to 20% by Q4 FY2026. Compressed Biogas (CBG) production is being promoted, with plans for small to mid-size CBG plants across the country.
India is also preparing for a Carbon Credit Trading Scheme by 2026 to address emissions. The scheme aims to establish a platform for trading carbon credits, with a focus on hard-to-abate sectors such as steel, refineries, and petrochemicals. With these initiatives, India is poised to make significant strides towards its energy transition targets while tackling climate change.
Next 25 Years of Development
India has made impressive infrastructural progress over the past 25 years. With a focus on improving the ease of doing business, India has embarked on a journey towards creating a conducive environment for entrepreneurs and investors alike.
India is on the path to its next industrial revolution - Industry 4.0 - driven by the integration of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and automation. Multinationals are expanding capacity and establishing plants, making India a key export hub in global supply chains. This growth enables small industries to scale up, driving significant momentum in capital expenditure. This transformation enhances manufacturing efficiency and productivity, positioning India as a leader in industrial innovation and technology adoption.
To bolster India’s energy transition, the Government has introduced Production-Linked Incentive (PLI) schemes, accelerating private sector participation in manufacturing. For PV module manufacturing, Tranche 1 and Tranche 2 aim to build 65 GW annual capacity. PLI guidelines cover green hydrogen production and electrolyser manufacturing, with a budget of `13,050 Crore for green hydrogen and `4,440 Crore for electrolysers. The National Green Hydrogen Mission targets 5 MMT annual production by 2030, promoting employment and research. In EV manufacturing, FAME India Phase II supports hybrid / electric vehicles with a `10,000 Crore budget. PLI schemes for automobiles and auto components and advanced chemistry cells aim to boost domestic manufacturing. Additionally, India plans to launch a Carbon Credit Trading Scheme by 2026 to facilitate trading of carbon credits.
Looking towards India in 2047, the nation’s focus on carbon decarbonisation and technology will shape its sustainable future. Through extensive investment in renewable energy and technological innovation, India aims to significantly reduce carbon emissions. Advancements in clean energy technologies and electric mobility, supported by digital solutions like AI and IoT, will drive efficiency and sustainability across sectors. By integrating technology with environmental stewardship, India is poised to lead the way towards a greener and more prosperous future.
Tata Projects – Making a Difference
Tata Projects leads the construction and infrastructure sectors with a focus on innovation and safety. We employ advanced technologies like Building Information Modelling (BIM) and modular construction techniques to ensure high-quality, timely, and budget-friendly project delivery while prioritising sustainability.
We cultivate a culture of continuous learning, empowering our workforce to embrace emerging technologies. Our commitment to excellence aligns with the nation’s Net Zero goals, driving us to integrate clean energy solutions into our projects.
Inspired by innovation, safety, and sustainability, Tata Projects moves forward, shaping a future of excellence and environmental responsibility in construction and infrastructure.
