APR Constructions Limited - Saffron Capital

Funding Sources
Irrigation projects are for public benefits and do not
generate any direct revenue benefits. Hence, investments in
irrigation are made only by the government and private
investment is negligible. Projects are awarded on
competitive bidding by companies on EPC/ cash contract
basis.
Irrigation infrastructure, being a state subject, is primarily
funded from the state government‟s budgetary allocation
although the central government provides some support to
irrigation projects through its schemes such as AIBP and
CADWAM. Centre level funding are provided mostly to
irrigation projects of national stature (large irrigation projects mostly involving two or more states).
Key Highlights
(Source: CRISIL Research, Indian Infrastructure Report, November 2009 and Planning commission)
Government Investments: Due to socio-economic benefits, irrigation has been the key focus area for many state
governments. Further, as irrigation investments are completely government driven, the risks of cancellation of
projects is also low. (Source:CRISIL Research, Indian Infrastructure Report, November 2009)
After commencement of AIBP, 109 major/medium projects and 6,584 Surface MI Schemes have been reported to
be completed so far. An additional irrigation potential of 5.44 million hectare has been created through
major/medium irrigation projects and an irrigation potential of 0.45 million hectare has been created through
Surface Minor Irrigation Schemes up to March 2009.(Source: Indian Portal: www.india.gov.in)
ROAD INDUSTRY – OVERVIEW
India has one of the largest road networks of 33 lakh kms consisting of:
Road
Length (In km.)
Expressway 200
National Highways 70,548
State Highways 1,28,000
Major District Roads 4,70,000
Rural and Other Roads 26,50,000
India has the second largest road network in the world.
About 65% of freight and 80% passenger traffic is carried by the roads.
National Highways constitute only about 2% of the road network but carry about 40% of the total road traffic.
Number of vehicles has been growing at an average pace of 10.16% per annum over the last five years.
(Source: www.nhai.org)
The rapid expansion and strengthening of the road network is imperative to provide for both present and future traffic
and improved accessibility to the hinterland. In addition, road transport needs to be regulated for better energy
efficiency, less pollution and enhanced road safety. To promote better road infrastructure the Government of India has
implemented certain policy measures including the following :-
Declaration of the road sector as an industry.
In Budget 2010-11, the allocation for road transport has been increased by over 13 per cent from US$ 3.8 billion
to US$ 4.3 billion.
In order to tide over the shortage of funds, the road transport and highways ministry has proposed priority sector
status for road development, allowing private highway developers more funds from banks.
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