Total infrastructure spending is expected to be about 10 per cent of Gross Domestic Product (GDP) during the 12th Five-Year Plan (2012–17), up from 7.6 per cent during the previous plan (2007–12).Significant and planned allocation to the infrastructure sector is likely to see investment of US$ 1 trillion. This will create huge demand for construction Industry in India. As on March 2015, projects worth US$ 32.69 billion have been awarded through PPP model, with as many as 165 PPP projects still under progress. During the next five years, investment through PPP is expected to be US$ 31 billion In FY15, major ports handled 581.3 million metric tonnes (MMT) of cargo, while non-major ports handled 471.2 MMT of cargo. Since ports handle almost 95 per cent of trade volumes in India, the rising trade has contributed significantly to the country’s cargo traffic. To support the growing demand, cargo capacity in India is expected to increase to 2,493.1 MMT by 2017. Some of the sector wise highlights are:
Road Transport and Highways: Out of 26 projects 8 projects worth USD 1294 millions are on PPP basis.26 projects worth USD 3638 millions are in final preparation stages before implementation, 9 are ready to be bid out and 16 are at various stages of the bidding process.Top visionary projects to be implemented in the next few years are worth USD 6032 millions of which projects worth USD 2682 millions are on PPP basis.
Ports and Shipping: Central Government actively focuses on development/ upgradation of capacities across all coastal states. procurement in the next financial year.Top 11 projects for FY 2015-16 amount to USD 1847 millions, almost 90% of which are on PPP basis.Top 10 visionary projects in shipping for the next few years are worth USD 8853 millions out of which about 25% of projects are on PPP mode and 70% are Government/PPP.
Power: Top 10 projects for FY 2015-16 amount to USD 17473 millions, out of which 5 projects are on PPP basis. 4 thermal power projects with installed capacity of more than 8,200 MW will be out for bidding in FY 2015-16.Top 10 visionary projects in power for the next five years are worth above USD 19200 millions out of which 3 projects are on PPP basis.
Civil Aviation: PPP opportunity for Operation, Maintenance and Development of the four existing airports is being tendered. Development of cargo hubs in 6 metro airports along with other extension and strengthening projects is proposed over the next few years.
Delhi Mumbai Industrial Corridor: 4 mega projects under DMIC umbrella are ready for procurement in the next financial year.Total value of these projects is USD 644 millions.
Railways: Majority of projects proposed for FY 2015-16 are on PPP basis.Total value of projects getting ready for procurement is above USD 1600 millions.Visionary railway projects upcoming in the next few years are worth USD 41120 millions.
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Source DIPP, IBEF & VSPortal research