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APR Constructions Limited - Saffron Capital

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In addition to above, private players are expected to make high investments in setting up logistics parks and free trade<br />

warehousing zones (FTWZs) across India.<br />

(Source:CRISIL Research, Indian Infrastructure Report, November 2009)<br />

Key Highlights<br />

25,000 km of rail lines to be completed by 2020<br />

Rs 1302 crores to improve passenger amenities;<br />

1021 Km of New Lines to be completed, 9 new line projects announced;<br />

Electrification of 1000 km by 2011<br />

94 stations to be upgraded to Adarsh Stations<br />

Special Task Force to clear investment proposals within 100 days<br />

Multi-level parking complexes through PPP route<br />

Plan for high-speed rail corridor by National High Speed Rail Authority<br />

Master plan for development of rail infrastructure the Northeast region<br />

Setting up of dedicated freight and passenger corridors<br />

(Source: www.pib.nic.in)<br />

FUTURE OUTLOOK ON INFRASTRUCTURE:<br />

Taking in to consideration both new and latent demand, CRISIL Research estimates infrastructure expenditure to<br />

nearly double to Rs 32 trillion ($700 billion) over 2009-10<br />

to 2013-14 period. CRISIL Research believes that even if<br />

new demand for infrastructure across sectors is ignored,<br />

bridging the latent demand itself presents a huge investment<br />

opportunity.<br />

In the past few years, the government has taken initiatives<br />

to bridge the gap in infrastructure by encouraging private<br />

participation in a number of sectors. However, the gap is<br />

very huge and demand is growing at a faster pace.<br />

Therefore, in order to realize the potential economic growth<br />

rate in the long term, investments would need to grow at a<br />

much faster pace.<br />

(Source:CRISIL Research, Indian Infrastructure Report, November 2009)<br />

Infrastructure sector received an impetus in the Government‟s policy package, which includes measures such as<br />

permission to India Infrastructure Financing Company (IIFCL) for raising tax free bonds, removal of interest ceiling<br />

on external commercial borrowings (ECB), enhancing of cap on FII investment in corporate debt market, easy<br />

refinancing from the Reserve Bank and creation of Special Purpose Vehicle (SPV) to lend to non-bank finance<br />

companies.<br />

With a view to enhancing the competitiveness of the domestic industry by providing quality infrastructure through<br />

public-private partnership (PPP) in select functional clusters/locations which have the potential to become globally<br />

competitive, the Government of India has recast the Industrial Infrastructure Upgradation Scheme (IIUS). The salient<br />

features of this scheme include creation of quality infrastructure in existing industrial clusters/locations with high<br />

growth potential requiring strategic interventions in providing common facilities for transport, road, power supply,<br />

effluent treatment and solid waste disposal, information and communication technology (ICT) and such other physical<br />

infrastructures.<br />

(Source: www.rbi.org.in)<br />

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