Infrastructure Investments pegged at Rs 6.3 Trillion for next Five Years

Mumbai: The Government's increasing focus on infrastructure is expected to translate into an investment of Rs..6.3 trillion over the next 5 years. National Highways would approximately consume 43 per cent of the total investments planned. However, this can be achieved only through clarity in policy framework and faster project execution. Of these, 30 per cent of investment is expected to come from private sector participation. These were some of the deliberations that came up at the LKP hosted conference on 'Roads & Highways – On a Growth Trajectory', held at Mumbai.

Another interesting insight for discussion at the LKP Conference was that the share of public funds being gradually reduced in favour of private sector participation through the Build-Own-Operate route for National Highways and few state road projects. With increased exposure and lending by banks to the Infrastructure sector and other options like refinance window and the IIFCL financing options, adequate debt funding in this sector would be available in the next five years.

On the occasion, Mr. S Ranganathan, Head of Research, LKP, said, "The Government of India has a target of constructing 20 kms of road every day and private sector participation in roads is being encouraged to improve quality of roads and highways and speeding up of the execution process. The Government has also outlined a new expressway program aimed at building more than 18,000kms of Greenfield Expressways in the next 12 years."

The conference also highlighted steps taken by private sector players to enhance the building of roads and highways. There were also individual company presentations in the conference from leading players operating in the infrastructure space.

NHAI being the primary nodal authority for allocating National Highways projects has been invited to this LKP hosted conference to discuss the 'Roadmap for the planned execution of these projects, which includes mega Highways and Expressway projects along with issues like funding requirements, opportunities and challenges" Other blue chip corporate s that participated in the LKP hosted conference included Sadbhav Engineering, IL&FS Transportation Networks ltd, GMR Infrastructure, HCC and Ahluwalia Contracts.

Source : Equity Bulls

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