News Bulletin: February 2026 – Edition 1
Union Cabinet Approves Major Infrastructure Package
India’s Union Cabinet approved a comprehensive infrastructure investment package of about ₹1.50–1.60 lakh crore, covering road, rail, urban development and transport connectivity projects. This also includes the launch of the Urban Challenge Fund to support reform-based urban infrastructure initiatives. Source
Delhi Announces ₹1,330 Crore Support Package for Roads and Sanitation
The Delhi government unveiled a multi-crore assistance package for the Municipal Corporation of Delhi (MCD), earmarking funds to enhance internal roads, sanitation systems, primary schools and community facilities across the city. Source
Uttar Pradesh Implements New Urban Redevelopment Policy
The Uttar Pradesh government approved the Urban Redevelopment Policy-2026 targeting older and unsafe buildings for redevelopment under government, PPP, or association-led models to improve safety and land use. Source
MMRDA Budget Heavy on Infrastructure
The Mumbai Metropolitan Region Development Authority (MMRDA) approved a ₹48,072.5 crore budget for FY 2026–27, with 87 % earmarked for infrastructure, including metro corridors, roads, elevated corridors and climate resilience components. Read more here
NGT Upholds Clearance for Great Nicobar Mega Project
The National Green Tribunal confirmed environmental clearance for the Great Nicobar Island mega infrastructure project, including port development and related facilities, noting that adequate safeguards are in place. Read more here
Strategic Border Infrastructure Accelerates
Infrastructure development along India’s northern border with China continues to gain pace, with initiatives such as emergency runway extensions, underwater tunnels and new highway links aimed at improving connectivity and defense logistics in northeastern states. Read more here
India’s First Rail-Road Underwater Tunnel Approved
The Union Cabinet also approved India’s first underwater road-cum-rail tunnel beneath the Brahmaputra in Assam, with an estimated cost of about ₹18,662 crore. This project marks a significant step in regional connectivity and multimodal infrastructure capability. Read more here
India-Singapore Infra Investment Ties Highlighted
At the ET Now Global Business Summit, industry leaders flagged strengthening infrastructure investment cooperation between India and Singapore, particularly in aviation and logistics infrastructure, as a key economic growth vector in the region. Read more here
L&T Secures ₹1,000–2,500 Crore Road Development Contract in Dubai
Larsen & Toubro’s Transportation Infrastructure arm has secured a road development contract in Dubai valued between ₹1,000 crore and ₹2,500 crore. The project covers Phase 1 of the Latifa Bint Hamdan Street upgrade, including expansion from two lanes to a four-lane dual carriageway in each direction, construction of a major interchange and corridor extension. The project timeline is 36 months. Read more here
₹10,000 Crore Allocation for Domestic Container Manufacturing
The government has earmarked ₹10,000 crore over five years to promote domestic container manufacturing under its maritime strategy. The initiative aims to reduce import dependence, strengthen logistics supply chains and align manufacturing capacity with expanding port and multimodal infrastructure. Read more here
₹26,015 Crore Kamala Hydel Project Approved in Arunachal Pradesh
The government has approved the ₹26,015 crore Kamala Hydel Power Project in Arunachal Pradesh. To be executed by North Eastern Electric Power Corporation Ltd, the 1,390 MW project is expected to strengthen grid capacity, support regional development and expand renewable energy infrastructure in the Northeast. Read more here
₹830 Crore Maritime and Waterways Projects Launched in West Bengal
Prime Minister Narendra Modi inaugurated and laid the foundation for maritime and inland waterways projects worth over ₹830 crore in Hooghly district, West Bengal. Key components include an Extended Port Gate System at Balagarh with 2.7 million tonnes annual capacity, upgrades along National Waterway-1, and the introduction of hybrid electric catamarans for river transport. The projects aim to ease congestion and strengthen multimodal logistics in eastern India. Read more here
Waaree Raises ₹1,003 Crore for Battery Manufacturing Facility
Waaree Energies has raised ₹1,003 crore to set up a battery manufacturing plant in India. The facility will focus on advanced batteries for electric vehicles and energy storage systems, supporting domestic production, reducing import dependence and strengthening clean energy supply chains. Read more here
India–GCC Trade Crosses $179 Billion Amid Mega Pact Talks
India and the Gulf Cooperation Council are advancing a major trade agreement as bilateral commerce reaches approximately $179 billion. The partnership spans energy, goods, services and investment, with stronger logistics and infrastructure linkages expected to support deeper supply chain integration. Read more here
Reliance Commits ₹7 Lakh Crore Investment in Gujarat
Reliance Industries will invest ₹7 lakh crore in Gujarat over the next five years, focusing on clean energy, digital infrastructure and advanced manufacturing. Key initiatives include an AI-ready data centre in Jamnagar, utility-scale solar and green hydrogen projects, and expanded digital platforms. Read more here
RMZ Announces ₹30,000 Crore Partnership With Maharashtra
RMZ Corp has entered into a ₹30,000 crore strategic partnership with the Government of Maharashtra, announced at the World Economic Forum in Davos. The collaboration will focus on sustainable real estate, technology-led urban infrastructure, logistics hubs and green buildings to support industrial growth and investment in the state. Read more here
Budget 2026–27: What It Means for Infrastructure Sector
The Union Budget 2026–27 reinforces infrastructure spending as a central driver of economic growth, employment and regional development. Capital expenditure has been set at approximately ₹12.2 lakh crore, up about 9 percent from ₹11.2 lakh crore last year, even as the fiscal deficit target is pegged at 4.3 percent of GDP. Rail, freight and waterways continue to receive policy emphasis, and a new risk guarantee framework has been proposed.
The more relevant question is what this combination signals for the sector.
Public Capex Is Being Protected
At ₹12.2 lakh crore, capital expenditure remains at historically high levels despite fiscal consolidation. This suggests infrastructure is no longer a temporary stimulus lever but a structural pillar of economic planning.
For the sector, this improves multi-year visibility. At the same time, larger allocations bring greater scrutiny. Execution delays, cost overruns and weak financial discipline will face sharper attention.
Logistics Cost Remains a Policy Focus
Policy discussions have long placed India’s logistics cost at 13 to 14 percent of GDP, with more recent assessments suggesting it may be closer to 8 percent. Regardless of the precise figure, reducing the cost and time of moving goods remains a priority.
Continued emphasis on freight corridors, multimodal connectivity and the operationalisation of 20 additional national waterways reflects this focus.
Lower logistics costs improve manufacturing margins, export competitiveness and inventory efficiency. For infrastructure companies, integration across rail, ports, inland terminals, warehousing and digital systems will matter more than isolated asset delivery.
Risk Allocation Is Being Reworked
The proposed Infrastructure Risk Guarantee Fund could reshape private participation. Earlier slowdowns in PPP activity were driven in part by overstated traffic projections and uneven risk distribution.
If the new framework improves risk sharing, long-term capital such as pension and insurance funds may re-enter more actively, potentially lowering project financing costs.
Its effectiveness will depend on design clarity, exposure limits and governance discipline.
Urban Infrastructure Is Moving Up The Agenda
The allocation of ₹5,000 crore per City Economic Region over five years signals a stronger push toward urban systems.
Urban projects differ from national corridors. Transit, utilities, redevelopment and digital layers require local coordination and long-term operational capability.
This may shift competitive advantage toward firms combining construction with operations, asset management and technology integration.
A More Demanding Operating Environment
The opportunity set remains substantial. Public investment is strong and sustained.
However, the environment is tightening. Conservative bidding, financial discipline, balance sheet strength and lifecycle management capability will increasingly differentiate firms.
This budget does not mark a dramatic shift. It reinforces continuity: sustained public capex, logistics efficiency, structured risk sharing and greater attention to urban systems.
Growth continues. Expectations are higher.
Regulatory & Policy Watch
1. Maharashtra’s Revised PPP Policy
The Government of Maharashtra has approved a revised Public–Private Partnership policy that restructures how PPP projects are appraised, approved and monitored across departments.
For practitioners, the significance lies less in announcement value and more in administrative architecture. The policy formalizes approval committees, creates department-level PPP cells and standardizes documentation processes.
In practical terms, this means PPP proposals will move through a more structured evaluation pathway. Documentation discipline will matter. Risk allocation and feasibility assumptions will likely face closer scrutiny at appraisal stage rather than being debated mid-cycle.
For sponsors and advisors, preparation quality will increasingly determine speed.
2. Draft National Electricity Policy 2026
The Ministry of Power has released the Draft National Electricity Policy 2026 for consultation. While electricity policy may appear sector-specific, its implications are wider.
The draft emphasizes resource adequacy planning, grid reliability, renewable integration and financial discipline for distribution companies. These are not abstract goals. They directly influence project viability in energy-intensive infrastructure.
Industrial parks, metro systems, logistics hubs and large treatment facilities depend on predictable power supply and stable tariff frameworks. When grid planning norms tighten, infrastructure planning must respond accordingly.
Energy modelling is no longer a background assumption. It is becoming a regulatory consideration that must be factored in early.
3. Environmental Clearance Scrutiny and Compliance Expectations
The proposed cement project by Shree Cement in Meghalaya has drawn attention at the parliamentary level regarding the environmental clearance process. Questions were raised around cumulative environmental impact, adequacy of documentation and consultation procedures.
The broader takeaway is not about one company. It reflects the growing sensitivity around large industrial and infrastructure projects in ecologically fragile regions.
Environmental clearances have always been required. However, the depth of review and the public visibility attached to high-impact projects might be changing.
For developers, this means environmental due diligence cannot be treated as a procedural formality. Baseline studies, impact assessments and community engagement need to withstand scrutiny beyond the initial clearance stage.
Approval does not necessarily mean immunity from later examination.