Thursday , 6 August 2020

India: Guiding growth through Infrastructure development

Infrastructure has been one of the cornerstones in the development of the country with exponential growth over the past decade. India has an evolved outlook towards infrastructure development, writes Prerna Soni, Senior Vice President, Invest India.

There has been a paradigm shift in the approach towards building infrastructure in India, from need based to an integrated long-term development strategy. All infrastructure sectors in India provide excellent opportunities with Public Private Partnerships (PPP) identified as the most suitable mode for implementation and funding of most infrastructure projects in the country.

There has been a paradigm shift in the approach towards building infrastructure in India, from need based to an integrated long-term development strategy. All infrastructure sectors in India provide excellent opportunities with Public Private Partnerships (PPP) identified as the most suitable mode for implementation and funding of most infrastructure projects in the country.

The Roads & Highways Sector of India has been exemplary in establishing public private partnerships in the country. With a plan to double national highways in India to 200,000 kms, the Bharatmala Programme was launched for developing 66,100 kms of additional road network including expressways, economic corridors, international and border roads. Innovative financing models such as recycling of existing and operational roads are being implemented to generate funding for greenfield road construction.

The Government has increased its annual infrastructure spending significantly in the last four years. A very comprehensive institutional framework for Private Participation in Infrastructure has also been developed.

India has been clocking a consistent double-digit growth in the domestic aviation market setting the country to become the third largest aviation market in the world by 2027. To meet the huge demand, 100 new airports will be built over the next 15 years and 400 existing airports will be upgraded.

The Railways sector in India has also recently opened up to 100% FDI in railway infrastructure segment. To augment freight traffic, six dedicated freight corridors are being built to minimise freight movement time. Seven High Speed Railways are also being built across the country with the first one already under implementation. Four Hundred Railway Stations are also being redeveloped as the central points of cities.

Significant physical infrastructure is being created to accommodate the growing population of India through the ‘Housing for All Mission’ by building 100 new Smart Cities, rejuvenating 500 existing cities and providing affordable houses to all by 2022.

India is targeting installation of 227GW of renewable energy capacity, which will require a fourfold growth in the sector from the existing installed capacity of 60GW. By 2022, India will ensure that every house in India has electricity which will be achieved through additional renewable energy sources installed across India.

The mammoth infrastructure needs of the country have an estimated outlay of $4 trillion by 2040. The infrastructure pipeline launched by the Government of India recently has laid out the integrated infrastructure plan for the next decade with an anticipated requirement of $1trillion.

To further give impetus to private investments in the county, the Government has established a new asset class in the country – recycling of infrastructure assets

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