Published on 8/11/2017 2:17:40 PM | Source: Equirus Securities Private Ltd
Infrastructure Sector Update - Equirus Sec
Nitin Gadkari invites UAE investors for infra development
Union Minister Nitin Gadkari called on the UAE and NRI investors to be part of the two mega initiatives Sagarmala and Bharatmala worth of INR 24 lakh Crs. Addressing the India UAE Partnership Summit via a video message, India is one of the fastest growing economies in the world and Prime Minister Narendra Modi has given the highest priority to infrastructure development. For the Bharatmala initiative, the government is planning to start projects worth of INR 8 lakh Crs within two years. For Sagarmala project, the government has planned for 14 industrial clusters and special economic zones which are going to accelerate the economy.
India needs INR 50 lakh Crs infrastructure investment over 5 years: Crisil
According Crisil, India needs to spend at least INR 50 lakh cr between over the next five years or close to INR 3,000 Crs a day to build its infrastructure sustainably. However, this would require expeditious resolution of the problem of stressed assets in banking among others. Spending of such magnitude requires expeditious resolution of the problem of stressed assets in banking, front-ending of bankable projects, comprehensive re-tooling of public-private partnership frameworks, and deepening of the infrastructure financing ecosystem, which is of tremendous importance.
Modi govt approves mega INR 7-lakh Crs project to develop 83,000 km highways in 5 years
The government approved the biggest highway construction plan so far in the country, to develop ~83,677 km of roads at an investment of INR 6.92 lakh crore by 2022. The highway construction programme is aimed at pushing economic activity and generating at least 14.2 crore man-days across the country over the next five years. The programme includes the Bharatmala scheme, under which 34,800 km of highways would be constructed at the cost of INR 5.35 lakh Crs.
331 infrastructure projects see cost overrun of INR 1.72 lakh Crs
According to a government report, as many as 331 infrastructure projects, each worth INr 150 Crs or above, have seen a cost overrun of INR 1.72 lakh Crs because of various reasons including delays. The total original cost of implementing 1,257 projects was Rs 15.8 crore and their anticipated completion cost is likely to be Rs 17.5 lakh crore, cost overrun of INR 17.2 lakh Crs (10.93% of the original).
To Read Complete Report & Disclaimer Click Here
Above views are of the author and not of the website kindly read disclaimer