ACE January 2020
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Cover Story
If the cash flow is structured and the
infrastructure projects are executed
timely, there is no reason why the
Indian construction sector should
not rebound and witness a gradual
and steady growth in 2020-21.
Manikandan Mahalingam, General
Director, Paschal Formwork (India)
Private Limited
In China and other developed
nations the government makes
production facilities available to
entrepreneurs on rent, one can
just go and start production. A
similar program in India will go a
long way in encouraging potential
entrepreneurs too.
Rakesh Modi, Chairman, Mtandt Group
24,800 km of roads for a total investment of `5,35,000
crore.
PE/ VC investments for infrastructure touched an all-time
high of US$ 36.7 billion during January-August 2019.
The government is keen to ensure that the momentum of
growth in the sector remains upbeat. In January 2019, the
government outlined the investments under the second
phase of Bharatmala scheme. According to Research and
Markets, this initiative will drive the road infrastructure
developments in the country. Accordingly, the government
also aims to invest `3.4 trillion (US$50.3 billion) through the
budgetary allocation between FY2019-2020 and FY2022-
2023, while `2.1 trillion (US$30.7 billion) will be made
through market borrowings in the Bharatmala scheme by
2023.
When the plan itself is so ambitious it is equally essential to
monetise it. Hence last month, the union cabinet, chaired by
the Prime Minister Narendra Modi, has given its approval to
the proposal of Ministry of Road Transport and Highways,
authorizing National Highways Authority of India (NHAI) to
set up Infrastructure Investment Trust(s) (InvIT) as per InvIT
Guidelines issued by SEBI. This will enable NHAI to monetise
completed National Highways that have a toll collection
track record of at least one year and NHAI reserves the right
to levy toll on the identified highway. This will enable NHAI
to generate adequate funds to complete pending projects
within the prescribed timelines. The government is also
keen offer attractive schemes to private players to invest in
construction of National Highways.
Likewise, population growth and urbanisation will also drive
the need for better infrastructure facilities in the country.
The need for affordable housing is also likely to prep up the
construction sector too. The Housing for All scheme aims to
create 20 million affordable houses for the urban poor by
2022. It will provide a boost to the residential construction
which is experiencing sluggish growth owing to rising price
of land banks and unsold inventories.
Monetising the built environment
It goes without saying that roads and highways play an
important role in the nation’s economy and keeping that
in mind the government had proposed the Bharatmala
Pariyojana. A flagship highway development programme
of Government of India it encompasses development of
ACE UPDATE January
ARCHITECTURE CONSTRUCTION ENGINEERING
2020
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