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Infrastructures >



he Infrastructure sector is largely

responsible for propelling India’s

overall development.The Ministry of

Road Transport and Highways & Shipping,

has announced the government’s target of

Rs 25 trillion (US$ 376.53 billion) investment

in infrastructure over a period of three

years, which will include Rs 8 trillion

(US$ 120.49 billion) for developing 27 industrial

clusters and an additional Rs 5 trillion (US$

75.30 billion) for road, railway and port

connectivity projects.

Market Size


70 per cent of funds (US$ 454.83 billion)

for the next 5 years are needed for power,

roads and urban infrastructure segments.


The Indian power sector itself has an

investment potential of US$ 250 billion

in the next 4-5 years, providing immense

opportunities in power generation,

distribution, transmission and equipment.

The Indian construction equipment industry

is expected to grow to US$ 5 billion by


Major Investments Planned in India's

Infrastructure Sector


The Asian Development Bank (ADB) has

approved US$ 631 million loan to develop

the first coastal corridor, namely the

Vishakhapatnam-Chennai industrial corridor.

The Asian Development Bank (ADB)

and Government of India signed a loan

agreement of US$ 80 million, that will be

invested for improving water supply, solid

waste management and sanitation in the

cities of Agartala and Aizwal,the capital cities

of Tripura and Mizoram respectively in the

North-East part of India.

Maharashtra State Government plans to

launch infrastructure projects worth US$ 10.78

billion in Mumbai and neighboring areas in

2016,which include coastal road,Trans harbor

link, metro rail, airport and road projects.

The Government of India has earmarked

US$ 7.34 billion to develop 100 smart cities

across the country.The Government released

its list of 98 cities for the smart cities project

in August 2015.

The Government of India has announced

highway projects worth US$ 93 billion.

Government Initiatives

Plans to boost regional connectivity by

setting up 50 new airports over the next

three years.

Plans to invest over US$ 1.04 billion in

FY2016-17 to develop its network in the

north-eastern region for better connectivity.

The Reserve Bank of India (RBI) has allowed

companies in the infrastructure sector to raise

External Commercial Borrowings (ECB) with

a minimum maturity of five years.

The Securities and Exchange Board of India

(SEBI) has allowed Foreign Portfolio Investors

(FPI) to invest in units of real estate investment

trusts (REITs) and infrastructure investment

trusts (InvITs).

Government plans to use the new hybrid-

annuity model for allocating contracts under

the Public Private Partnership (PPP) projects

in highways, Namami Gange and Railway


The Union Ministry of Urban Development

has approved an investment of US$ 72million

for water supply, sewerage networks and

septage management, storm water drains,

urban transport and provision of green spaces

in 13 cities over six states.

The Ministry of Urban Development has

approved an investment of US$ 2.81 billion

for improving basic urban infrastructure in

474 cities in 18 states and Union Territories.

The Government of India plans to award

100 highway projects under the public-

private partnership (PPP) mode in 2016,with

expectations that recent amendments in

regulations would revive investor sentiments

in PPP projects in the infrastructure sector.

The Reserve Bank of India (RBI) has notified

100 per cent foreign direct investment (FDI)

under automatic route in the construction

development sector and the Government

has relaxed FDI norms in construction.

Road Ahead

Indian port sector and Indian aviation are

poised to make great progress in the years

to come. It is forecasted that by the end of

2017 port traffic will amount to 943.06 MT

for India’s major ports and 815.20 MT for its

minor ports and project investment in aviation

will be US$ 120 billion.

Source:India Brand Equity Foundation,Dept.of

Commerce & Industry, Govt. of India

Investments will boost economy and increase output

photo by: © Singhlens,