A
PERSPECTIVE
In
India, construction is the second largest economic activity after
agriculture. The investment in construction accounts for nearly
11 percent of India's Gross Domestic Product (GDP) and nearly 50
percent of its Gross Fixed Capital Formation (GFCF). It accounts
for nearly 65 percent of the total investment in infrastructure
and is expected to be the biggest beneficiary of the surge in infrastructure
investment over the next five years.
•
An investment of Rs 14,50,000 crore or about USD 320 billion would
be required in the infrastructure sector during the Eleventh Five
Year Plan (2007-08 to 2011-2012).
• Investment requirement by 2012, estimated by the Committee
on Infrastructure, headed by the Prime Minister, in some of the
key sectors are: Rs 2,20,000 crore for modernization & upgradation
of Highways, Rs 40,000 crores for Civil Aviation, Rs 50,000 crores
for Ports and Rs 3,00,000 for the Railways.
• There is a shift in the policy of the government to finance
infrastructural projects through Public Private Partnership (PPPs).
PPPs through a range of alternatives such as Build Operate Transfer
(BOT), Build Own Operate Transfer (BOOT), Build Own Lease Transfer
(BOLT), Design Build Finance Operate (DBFO) etc. are increasingly
becoming the preferred mode for construction and operation of infrastructure
services such as highways, airports, ports etc.
• Since the inception of the SEZs policy in India, 14 SEZs
are in operation and around 150 SEZs have been approved. The Ministry
of Commerce & Industry, GoI estimates an investment of USD 22.22
billion in these SEZs by 2009.
• With a total capacity addition of 1,13,000 MW expected by
2012, an investment of USD 200 billion in power generation, transmission
& distribution is envisaged.
• Investment opportunities exist in water supply, sewerage
and waste management systems in many towns and cities. Construction
opportunities exist in roads, bridges, flyovers etc in cities, both
in Government sponsored projects as well as Build Own Operate (BOO)
and Build Own Operate Transfer (BOOT) basis projects. A number of
cities are planning mass rapid transportation systems and light
rail systems. These projects are mostly through private participation.
Housing is another major investment area with significant potential.
• The Government of India has initiated the Jawaharlal Nehru
National Urban Renewal Mission to develop urban infrastructure,
provide basic infrastructure facilities and urban services to 63
cities all over the country. Estimated to involve a capital outlay
of Rs 1,20,536 crore over a seven-year period starting 2005-06.
