APR Constructions Limited - Saffron Capital

In order to surmount strain in capacity utilisation, it is necessary to augment the freight-carrying capacity of railways
for handling increase in traffic volume in the coming years. Considering the overwrought capacity utilisation, it is
essential to step up investment by Indian railways.
(Source:CRISIL Research, Indian Infrastructure Report, November 2009)
While doubling of lines, gauge conversions, electrification and many other positive things did happen during the last
six decades, the overall expansion of the Indian Railways to areas it did not serve earlier has been unacceptably slow.
To realize this potential, the Indian Railways must achieve annual growth of 10% over the next 10 years by
developing a sharper commercial focus with a strong social commitment.
(Source: Railways Vision 2020 Document, Ministry of Railways)
Key Highlights
25,000 km of rail lines to be completed by 2020
Rs 1302 crores to improve passenger amenities;
1021 Km of New Lines to be completed, 9 new line projects announced;
Electrification of 1000 km by 2011
94 stations to be upgraded to Adarsh Stations
Special Task Force to clear investment proposals within 100 days
Multi-level parking complexes through PPP route
Plan for high-speed rail corridor by National High Speed Rail Authority
Master plan for development of rail infrastructure the Northeast region
Setting up of dedicated freight and passenger corridors
(Source: www.pib.nic.in)
FUTURE OUTLOOK ON INFRASTRUCTURE:
Taking in to consideration both new and latent demand, CRISIL Research estimates infrastructure expenditure to
nearly double to Rs 32 trillion ($700 billion) over 2009-10 to 2013-14 period. CRISIL Research believes that even if
new demand for infrastructure across sectors is ignored, bridging the latent demand itself presents a huge investment
opportunity.
In the past few years, the government has taken initiatives to bridge the gap in infrastructure by encouraging private
participation in a number of sectors. However, the gap is very huge and demand is growing at a faster pace.
Therefore, in order to realize the potential economic growth rate in the long term, investments would need to grow at
a much faster pace.
(Source:CRISIL Research, Indian Infrastructure Report, November 2009)
Infrastructure sector received an impetus in the Government‟s policy package, which includes measures such as
permission to India Infrastructure Financing Company (IIFCL) for raising tax free bonds, removal of interest ceiling
on external commercial borrowings (ECB), enhancing of cap on FII investment in corporate debt market, easy
refinancing from the Reserve Bank and creation of Special Purpose Vehicle (SPV) to lend to non-bank finance
companies.
With a view to enhancing the competitiveness of the domestic industry by providing quality infrastructure through
public-private partnership (PPP) in select functional clusters/locations which have the potential to become globally
competitive, the Government of India has recast the Industrial Infrastructure Upgradation Scheme (IIUS). The salient
features of this scheme include creation of quality infrastructure in existing industrial clusters/locations with high
growth potential requiring strategic interventions in providing common facilities for transport, road, power supply,
effluent treatment and solid waste disposal, information and communication technology (ICT) and such other physical
infrastructures.
(Source: www.rbi.org.in)
31