Study: India will see $51 billion of infrastructure investments

Pradeep Rane
20 September 2003

Mumbai: India will see $51 billion of infrastructure investments over the next three year in 2004-06, a 44-per cent surge over the preceding three-year period.

According a report issued by ICICI Securities on Indian infrastructure, "after six years of policy fine-tuning, India is poised at an inflection point in developing infrastructure." It is expected that there will be more private and foreign capital flowing into infrastructure projects in the country.

With soft interest rate regime and several legislative issued addressed various infrastructure projects like roads, power and port will attract huge invests in the coming days. It said that 43 per cent of the spend pie will accrue to the power sector and 20 per cent for roads with a consequent multiplier effect on the economy, the report said.

Also tenders for NESW corridor highways, several ports, and at least two airports will also be issued during this period. Already there is momentum in highways, ports and power generation, where a successful track record has fostered a virtuous cycle of more success, it said.

Power transmission and oil and gas have emerged as swing sectors due to an emerging clarity in public-private models and regulatory framework for transmission and distribution of power, pipelines and refinery modernisation.

However, investments in telecom could plateau after the phase of aggressive rollouts, the report said. "There is convergence of public policy and political view that the way ahead is by development of better infrastructure that can facilitate and propel growth."