Approximately Rs 80,000 crore of this potential is expected to be awarded in the next four years, particularly benefiting companies engaged in large irrigation projects.

The National Water Development Agency (NWDA) has pinpointed 30 ILR projects—16 linked to peninsular rivers and 14 to Himalayan rivers—that will receive funding from the Government of India (60%) and state governments (40%).

ICRA highlights a significant increase in the central government's focus on the water sector, reflected in a budget allocation exceeding Rs 78,000 crore for the Ministry of Jal Shakti (MoJ).

Chintan Lakhani, Vice President and Sector Head - Corporate Ratings at ICRA, noted, "The four-priority links mark the onset of a decade-long ILR project implementation. Although their share in the ministry's budget is currently about 5% (around Rs 3,908 crore), this is expected to grow as more projects receive approval and construction accelerates."

The NWDA has identified four priority projects for early implementation: the Ken Betwa, Kosi-Mechi, Parabati Kalisindh Chambal, and Godavari-Cauvery links. Among these, the Godavari-Cauvery project represents the largest investment, accounting for 45% of the total project cost, while the Kosi-Mechi link is the smallest at 4%. The Ken Betwa project, which has already commenced, constitutes 21% of the cost for these priority links.