Indian Infrastructure sector to attract over US$ 345.28 billion investment in 5 yrs

by Dave

Infrastructure-Economy-News-The Economic Times

Eight infrastructure sectors, including power and road, are set to attract more than Rs 16 lakh crore (US$ 345.28 billion) investment in India between 2007-08 and 2011-12, but the global slowdown could impact potential of Special Economic Zones, according to Crisil research estimates.

The infrastructure areas – oil and gas, power, roads, ports, airports, railways, urban infrastructure and telecom — got 2.2 times less investment in the previous five-year plan.

Though rising cost of finance will be a challenge in the present situation of high interest rates and global slowdown, it won’t impact investments much as the infrastructural projects have large gestation period, the Crisil report said.

The report forecasts that between 2007-08 and 2011-12, power will grow at 60 per cent, roads at 100 per cent, airports at 400 per cent, ports by 160 per cent and railways to witness 250 per cent growth.

“There are three key reasons for being confident about investment in Indian infrastructure – improved institutional framework for enabling infrastructure investments, especially by the private sector; experience gained by governments, regulators and players regarding the process of participation through concessions in infrastructure projects,” Crisil Research Head Sachin Mathur said. Thirdly, improved project
execution and financial capabilities of players
, who can now handle multiple,
larger and more complex projects, he added.