Prominent Notes: - Securities and Exchange Board of India

Based on the preparedness of the projects, it was envisaged that a capacity of about 68,869 MW is
feasible for addition during 11th plan period.
Out of feasible capacity addition of 68,869 MW, projects totaling to 31,345 MW are already under
construction and the balance projects totaling to 37,524 MW have been committed for implementation
by the concerned generating companies during the 11th Plan.
It is expected that the market for components involving a long manufacturing cycle, such as heavy
forgings and those using special raw materials, is likely to open up first, followed by that for
construction and engineering services, and lastly by that for turbine plant equipment, electrical plant,
and other balance of plant equipment. �����������������������������������������������������������
the XI Plan-2007-2012 and http://www.npcil.nic.in extracted as on September 29, 2010)
Ship building
Shipping plays an important role in the transport sector of ����������������������������������������
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one of the largest merchant shipping fleet among the developing countries and is ranked 20 th in the
world. Indian maritime sector facilitates not only transportation of national and international cargoes
but also provides a variety of other services such as cargo handling services, shipbuilding and ship
repairing, freight forwarding, light house facilities, training of marine personnel, etc
The Shipping Corporation of India Ltd. has proposed to acquire 62 vessels of various categories during
11 th Plan period. The SCI has proposed an outlay of `13,135 crores (`3705 from IR and `9430 crore
from EBR/ECB) for the ongoing and new schemes including the requirement for joint ventures.
(Source: Report of working group for shipbuilding and ship-repair industry for eleventh year plan
2007-2012 published by GoI, Ministry of shipping, Road Transport & Highways date March 2007)
With the thrust of the government for increasing the indigenous tonnage capacity we believe that the
market size of the forging components required in this sector will grow which will be beneficial for the
non-automotive forging manufacturers.
Aerospace and Defence
India is poised to become a large commercial and defence aircraft market. With rising passenger traffic
and increasing military and defence expenditures, the demand for aircrafts is expected to increase.
Boeing expects a demand of between 900 to 1,000 commercial aircraft worth USD100 billion
approximately in the next 20 years. This also suggests that a significant portion of business opportunity
could accrue to India, due to the associated offsets. The defence offset policy has been under
implementation and a formal civil offset policy is also expected to follow shortly. The total spending in
the next 5 years is expected to be between USD25 billion (assuming uniform demand) for commercial
aircrafts and USD100 billion as defence expenditure. Out of the defence expenditure, approximately
15-20 percent (USD15-20 billion) is expected to be spent on military aircrafts. Assuming an offset of
30 percent for the civil sector too, the total offset opportunity for the aerospace sector is valued to be at
least USD10-15 billion. (Source: website of Confederation of Indian Industries website-
http://www.cii.in extracted as on September 29, 2010)
It is expected that with growing GDP the aerospace and defence sector will provide huge investment
opportunities over coming years which include fleet augmentation, replacement in aerospace sector and
promoting indigenous procurement in defense supplies and befits due to defense offset clause.
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