|
|
 |
|
Viewing report
|
|
|
|
India Infrastructure Report Q1 2012
Business Monitor International, Dec 2011, Pages: 158
India Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on India's infrastructure industry.
BMI View: Construction activity for the first quarter of FY2011/12 (April-June) was weak, with inflation and interest rates in India remaining at elevated levels. As such, BMI continue to hold fast their view of a prolonged soft patch for the Indian construction sector in FY2011/12, with real growth forecast to reach 4.0% during the fiscal year. Looking further ahead, however, the sector's fortunes are likely to pick up in FY2012/13, as the government is gearing up for the 12th Five-Year Plan, releasing new infrastructure projects and addressing concerns about access to long-term financing and land acquisition.
Key drivers affecting growth include:
- In October 2011, it launched an INR166bn (US$3.35bn) highways building plan under the National Highways Development Programme, reports News Resources International. The plan covers the construction of six-lane highways totalling 6,500km, four-lane highways totalling 24,700km and the expansion of other highways. The programme is to be funded through public-private partnerships (PPPs). Under the plan, four expressway construction projects have already been given the go-ahead, while the country's PPP appraisal committee has approved 10 roadwork projects, worth a total of US$1.1bn.
- In July 2011, GMR won the contract to construct the 555.5km Ahmedabad-Udaipur- Kishangarh expressway-widening project - the single largest highway project in the country, both in terms of value and length. It is the first of nine similar highway projects.
- In September 2011, three state-run financial institutions - the Indian Infrastructure Finance Company Limited (IIFCL), Life Insurance Corporation of India (LIC) and India Development Finance Corporation (IDFC) - signed a memorandum of understanding to boost the application of takeout financing in India. The MOU would allow the three companies to take out up to 50% of an infrastructure project's debt, potentially unlocking about INR300bn (US$6.2bn) in bank debts, which could be used to finance other projects and speed up the pace of India's infrastructure development. This enhancement in takeout financing is critical, as it could mitigate the lack of size and sophistication in India's financial markets by boosting the liquidity and risk transfer opportunities for Indian banks.
BMI are forecasting Indian construction industry real growth to reach 6.0% in FY2012/13 and 7.5% in FY2013/14. These relatively high growth figures indicate that there are still significant opportunities for greenfield projects in India and is reflected in BMI's key projects database, which shows that there are more than US$400bn in projects either under construction or in the pipeline in the country's infrastructure sector.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
