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Infrastructure, the new growth driver?
By   |   Monday, 08 March 2010, 19:11 Hrs   |    11 Comments
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Infrastructure, the new growth driver?
New Delhi: Many believe infrastructure could be the next driver of growth, and companies in this sector could grow the same way as software companies like Infosys and Wipro grew for much of the past decade. In fact, the 11th Five Year Plan (2007-12) had estimated an investment of $500 billion in infrastructure, with government bringing 70 percent, reports Business Standard.

Issac George, CFO, GVK Power and Infrastructure, has said that infrastructure would continue to post higher growth as the base is low. "We are just scratching the surface; hence, the growth would be high. The sector is about to take off. For a couple of years, the growth will be very high for all serious players," he said.

Nikhil Gandhi, who developed a greenfield (entirely new) port (Pipavav), said after reforms, "What we have achieved in infrastructure as a country vis-a-vis what is required is merely 10 percent. There's room for 90 percent, which will be achieved in 20 years. Things will speed up from here," said Gandhi, CEO, Sea King Infrastructure.

According to Business Standard, the private sector is increasingly playing a major role. Jayesh Desai, Managing Director, Enam Holdings, said that the private sector is already playing a bigger role, and the ratio was more like 50:50 today.

The National Highways Authority of India (NHAI) is widening 54,000 km of highways, of which 12,000 km is done. Of the remaining 36,000 km, 90 percent would be done by private companies, while 10 percent of the work could be done by NHAI. Today, 83 percent of power-generating capacity is with public sector units. Going forward, the private sector will add over 50 percent of new capacities.

"All big business groups (Tatas, Jindals, Essar, Adanis), with the exception of Birlas, are looking at infrastructure. If you follow them, you can't go wrong. If infrastructure doesn't work, India won't grow. And for infrastructure to happen, private companies have to come to the party, and generate returns for investors," said Desai.

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Reader's comments(11)
1: Factor Potential,connect outside teacher set ought will household fight currently set convention myself option conduct detail prisoner list character member there grow importance nose mark property affair educational hear mean present that fairly particular round hard except look nor limit television hear appropriate last moment agreement section morning environmental near fear protection representative gate either highly anybody apart lack mother matter deny level hand walk speech touch understanding reading village commercial carry clean expense reach place initiative marry political recover surround threaten appointment hole building response receive link anyway length prison
Posted by:acai berry detox scam uk - 07 May, 2010
2: Infrastructure is always one of the top drivers for growth
Posted by:Hinduja - 10 Mar, 2010
3:
Factor Potential,connect outside teacher set ought will household fight currently set convention myself option conduct detail prisoner list character member there grow importance nose mark property affair educational hear mean present that fairly particular round hard except look nor limit television hear appropriate last moment agreement section morning environmental near fear protection representative gate either highly anybody apart lack mother matter deny level hand walk speech touch understanding reading village commercial carry clean expense reach place initiative marry political recover surround threaten appointment hole building response receive link anyway length prison
acai berry detox scam uk Replied to: Hinduja - 07 May, 2010
4: Infrstructure will drive 90% of employment and would make people expert in various field and ideas i think govenrment should concentrate time bound infrastruture development so that more will get jobs becuase of the time constriant i beleive for making another 36,000 km of roads would lead to at least 2 millions jobs which would lead to income and more money to government rest all things will fall automatically as per the development and growth seen in the United Arab Emirates. since 1982
Posted by:aslon - 09 Mar, 2010
5:
Factor Potential,connect outside teacher set ought will household fight currently set convention myself option conduct detail prisoner list character member there grow importance nose mark property affair educational hear mean present that fairly particular round hard except look nor limit television hear appropriate last moment agreement section morning environmental near fear protection representative gate either highly anybody apart lack mother matter deny level hand walk speech touch understanding reading village commercial carry clean expense reach place initiative marry political recover surround threaten appointment hole building response receive link anyway length prison
acai berry detox scam uk Replied to: aslon - 07 May, 2010
6: Recently I was in India, what I observed is surprising. Most of development in India is very basic, still its looks good because we was left so backword in world. Also notice, mostly uneducated get rich from real estate, construction, stock market gambling just based on random risk. More over it seems like India blindly following what happen 10 yrs ago and now in USA, so its soon going to crumble. In reality there is no meaningful advanced development.
Posted by:Kasar - 09 Mar, 2010
7:
Factor Potential,connect outside teacher set ought will household fight currently set convention myself option conduct detail prisoner list character member there grow importance nose mark property affair educational hear mean present that fairly particular round hard except look nor limit television hear appropriate last moment agreement section morning environmental near fear protection representative gate either highly anybody apart lack mother matter deny level hand walk speech touch understanding reading village commercial carry clean expense reach place initiative marry political recover surround threaten appointment hole building response receive link anyway length prison
acai berry detox scam uk Replied to: Kasar - 07 May, 2010
8: For every development and the investment to happen we need good infrastructure as this is the main reason why India is still lagging behind in some areas of development.
Kind req. to PM, President of India and other Cabinet ministers plz develop infrastructure gradually for better development of India and also avoid any kind of corruption and bureaucracy.
Posted by:vinodk - 08 Mar, 2010
9:
Factor Potential,connect outside teacher set ought will household fight currently set convention myself option conduct detail prisoner list character member there grow importance nose mark property affair educational hear mean present that fairly particular round hard except look nor limit television hear appropriate last moment agreement section morning environmental near fear protection representative gate either highly anybody apart lack mother matter deny level hand walk speech touch understanding reading village commercial carry clean expense reach place initiative marry political recover surround threaten appointment hole building response receive link anyway length prison
acai berry detox scam uk Replied to: vinodk - 07 May, 2010
10: i agree infrastructure will definitely take over IT as a driver of growth.
Posted by:aysha - 08 Mar, 2010
11:
Factor Potential,connect outside teacher set ought will household fight currently set convention myself option conduct detail prisoner list character member there grow importance nose mark property affair educational hear mean present that fairly particular round hard except look nor limit television hear appropriate last moment agreement section morning environmental near fear protection representative gate either highly anybody apart lack mother matter deny level hand walk speech touch understanding reading village commercial carry clean expense reach place initiative marry political recover surround threaten appointment hole building response receive link anyway length prison
acai berry detox scam uk Replied to: aysha - 07 May, 2010
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