Thursday, September 18, 2008

Infrastructure segment set to draw over US$ 345.28 billion investments by 2012

New Delhi: According to Crisil research estimates, eight infrastructure sectors, including oil and gas, power, roads, ports, airports, railways, urban infrastructure and telecom, are expected to draw more than Rs 16 lakh crore (US$ 345.28 billion) investment in India over the 2007-08 and 2011-12 period. 

Rising financial overheads due to high interest rates as well as a global slowdown are not likely to impact investments much as infrastructural projects have long gestation periods, the Crisil report revealed. 

Further, the telecom sector has the least risk potential of the lot. The report forecasts that during the specified period, power will grow at 60 per cent, roads at 100 per cent, airports at 400 per cent, ports by 160 per cent and railways at 250 per cent. 

Crisil Research Head, Sachin Mathur, claimed, "There are three key reasons for being confident about investment in Indian infrastructure - improved institutional framework for enabling infrastructure investments, especially by the private sector; experience gained by governments, regulators and players regarding the process of participation through concessions in infrastructure projects". The third key reason, Mathur added, was the improved project execution and financial capabilities of players which allow them to handle multiple, larger and more complex projects.

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