Download - Infrastructure Review
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8/7/2019 Infrastructure Review
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Infrastructure Review
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8/7/2019 Infrastructure Review
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Industry in 09-10
FY 2009-10 has turned out to be a year ofrecovery for India
Significant rise in fund raising by infrastructurecompanies.
Fund raising for infrastructure through IPOsreached a new high.
Qualified Institutional Placements were alsoemployed in raising funds.
To meet long-term financing a special categoryof NBFCs called IFCs were introduced.
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Telecom
Teledensity on the rise propelled by urbanteledensity which shop up to 111%.
GTL Infrastructure acquired Aircels tower businesscomprising 17,500 towers and, more recentl
The rural sector has seen poor progress onconstruction of towers.
Out of Rs 26,164 crore collected during FY2002-03
to FY 2008-09, only Rs 7,971 crore has beendisbursed
With telecom tariffs having dropped so significantly,investing in rural infrastructure has becomeunviable
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Energy
The mid-term appraisal of the 11th Plan
indicates that as against a target of 15000 MW,the private sector will be adding close to 20000MW
Barriers to be addressed fuel availability,
financial viability of the distribution business. Plans of implement huge solar capacity by 2022.
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Aviation
Capacity expansion and up gradation at four of thetop six airports, Mumbai, Delhi, Kolkata, Chennai is
being undertaken to relieve the heavy congestionand accommodate future traffic.
On the other hand, progress on the modernization of35 non-metro airports, which is being undertaken by
Airports Authority of India (AAI), has been slow.
Substantial increase in construction costs led to costover runs. To bridge this financing gap, AAI israising additional debt
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Ports
Growth led by private sector
Container penetration at major ports fromabout 45% in FY2002-03 to 52% in FY2009-10.This is still low compared to international levelsof about 85%.
Recent private sector projects at major ports aregenerating better returns due to upfront clarityon tariffs
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Roads
The highway expansion plan critically hinges onprivate sector investment.
NHAI has identified mega projects (400-700km)aggregating to development of about 4923 km. Theimplementation of the project needs to be expeditedif it needs to cover in a 5 yr period.
estimated at approximately an additional Rs.1,50,000 crore for the NHDP is needed. Commercial banks have difficulty in funding for
long-term road projects due to apprehensions aboutasset-liability mismatch.
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