infrastructure review

8/7/2019 Infrastructure Review

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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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infrastructure review

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