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buildings. .INFRASTRUCTURE The basic physical and organizational structures and facilities (e. In India the infrastructure sector currently accounts for 26.g. proper infrastructure increases business activity manifold. power supplies) needed for the operation of a society or enterprise.7% of India¶s industrial output and thus remains a useful tool to balance the economy. roads. Infrastructure sector plays an important role to counter balance against slowing economic activity and lower consumption. Infrastructure is the lifeline of any business activity.
4% y Economic prosperity is placing huge demands on infrastructure y .Economy Growth India¶s economic growth is attracting wide attention y Indian economy ± The 4th largest & 2nd fastest growing economy in the world y In 2006-07 India¶s growth was 9.
Infrastructure Requirements World Economic Forum has noted that India¶s annual investments in infrastructure between 1998 and 2005 averaged 4% of GDP compared to 8.2% for China y Government of India is addressing the infrastructure requirements y 11th Five Year Plan (2007-2012) calls for more than doubling the financial outlay for infrastructure y .
Infrastructure Sectors y y y y y y y y Power Oil & Gas Telecom Roads & Bridges Aviation Ports & Shipping Water Finance .
and inadequate private investment . low payload to Tare ratio (2. parking space & terminal buildings y Railways Old technology. aircraft handling capacity.Infrastructure Deficit y Roads 66.8% peaking deficit and 9. passengers: 50 kmph). and 38% Single-lane y Ports Inadequate berths. saturated routes: slow average speeds (freight: 22 kmph.590 Km of NH (2% of network.5) y Power 13.6% energy shortage. 40% T&D losses. rail / road connectivity and draft are constraints y Airports Inadequate capacity: Runways. absence of competition. 40% of traffic): only 12% Four-lane. 50% Two-lane.
Projected Eleventh Plan Sector Share Ports 4% Airports 2% Storage 1% Gas 1% Water Supply and Sanitation 7% Irrigation 12% Electricity 32% Railways 13% Telecom 13% Roads 15% .
Port Tariff Authority) y PPPs in India are accelerating 118 projects valued at $13.4 billion are progressing in roads.Development of PPP market in India y y PPPs in India are at a nascent stage Slew Measures by government 100% foreign investment allowed in infra sectors Model Concession Agreements evolved Viability Gap Funding (VGF) Setting up of IIFCL (Indian Infrastructure Finance Company) Regulatory institutions (Telecom Regulatory Authority. ports. airport sectors .
Transport Sector ± the potential in India y y 46.500 km of GQ & Other NH EW & NS Corridors: 4-laning of 6.800 km in selected sections on BOT 1.036 km 6-laning of 6.000 km to be developed by 2012: $ 59 bn PPP programmes approved so far: 21.736 km 4-laning of 6.000 km of new expressways y Safety Setting up of Directorate of Safety & Traffic Management Setting up of a dedicated road safety fund .
passenger coaches. signalling equipment y . locomotives. track equipment.000 route KMs network) y Accounts for 30% of total freight traffic y Traffic volumes set to double by 2012 y Potential for rolling stock.Railways India has one of the largest railway networks in the world (63.
To cross 3.3 million tonnes by 2010 y Maintenance. Repair and Overhaul (MRO) growing in a big way y MRO market expected to grow by 10% .Aviation Passenger traffic is projected to cross 100 million passengers p.a. by 2010 y Cargo traffic to grow at over 20% p. over the next five years .a.
5% Traffic expected to reach 880 million tonnes by 2011-12 95% of India¶s exports & imports moved by sea y India expects to double its exports to $150 billion in the next five years y . 187 minor ports Traffic has grown by a compounded average of 8.Ports y y y India has coastline of 7500 KMs 12 major ports.
Role of IIFCL y IIFCL is a SPV to provide long term finance to infrastructure projects Overriding priority to PPP projects Finance projects in sectors like roads. ports.3 billion with a total project cost of $31 billion . airports. urban infrastructure etc y Since inception in April 2006 Financed 77 projects to the tune of $4. power.
Conclusion Investment requirements of infrastructure sector huge y India growth story to continue y 50% of the population is below 25 years Huge domestic demand Need to bridge infrastructure gaps to sustain economic growth y Opportunities for international investors significant y India can leverage on its vast human capital to successfully adopt the PPP model y .