2.  OECD defines as power, telecom, roads, and water
supply
 In investment terms, it really constitutes
“infrastructure” that is suitable for PPP investment
– political and social constraint
 URGENT NEED IN INDIA :
 Infrastructure can directly assist the poor by:
 1. Enhancing economic activity
 2. Removing bottlenecks in a local economy
 3.generating distributional effects by increasing the
access of the poor to product markets

5.  HIGHWAYS
66,590 Km of NH (2% of network, 40% of traffic): only 12% Four lane;
50% Two-lane; and 38% Single-lane
 PORTS
Inadequate berths, rail / road connectivity and draft are
constraints
 AIRPORTS
Inadequate capacity: Runways, aircraft handling capacity,
parking space & terminal buildings
 RAILWAYS
Old technology; saturated routes: slow average speeds (freight:
22 kmph; passengers: 50 kmph); low payload to Tare ratio (2.5)
 POWER
9.6% energy shortage; 40% T&D losses; absence of competition

6. • Roads (USD 20b in each of next 2 yrs)
 Total opportunity of USD 42.2 bn over next 2 yrs
 Expressways additional opportunity of USD 11 bn
• Power (USD 200 bn in next 4 yrs)
 12th Plan capacity addition of 100GW (vs. 78GW)
 Private energy developers dominant share (64%)
 Investment of USD102b investment in power plants
and an additional USD102b in T&D
• Railways(INR800-900b spending over the next 1-2 yrs)
 Dedicated freight corridor (USD15b) and associated
feeder route upgrades (USD5b)
 comprise 30% of total spending. Approximately 26%
(USD15.6b) allocated for asset modernization.

7.  Ports:
 100% FDI under the automatic route is permitted for
port development projects
 100% income tax exemption is available for a period of
10 years
 Tariff Authority for Major Ports (TAMP) regulates the
ceiling for tariffs charged by Major ports
 Investment needed in the next 5 years $18 billion
 Aviation Industry:
 100% foreign direct investment allowed
 $ 9 billion program to upgrade 25 airports
 Delhi and Mumbai International airports – two PPP
projects with estimated investment of $3.8 billion
 19 greenfield airport locations identified
 Airport Economic Regulatory Authority being set up

8. CRITICAL ANALYSIS

9. • Lack of infrastructure to support real estate
development
• Transparency and governance
• Institutionalization
• Sources of finance
• Corruption
• Affordability of residential real estate

10. POLICY FRAMEWORK MARKET SIZE
• 100% FDI under automatic route for • 170+ NHAI Projects having a project
all road projects cost of Rs. 1.21lac crore at various
stages of bidding
• 100% income tax exemption for a • Multiple State Road Projects are on
period of 10 years anvil (Bihar, UP, Punjab and MP)
• Overseas borrowing amount under • Highways: opportunity of Rs. 1.90
ECB Policy increased to USD 500 mn. Lac crore in the next 2 years
•Indexed user charges to recover • Expressways: additional
building / maintenance costs opportunity of Rs. 50k crore

11. • New drinking water projects (24X7)
• Solid waste management and sewage
• New mass rapid transport systems
• Bus terminals
• Key players: Jindal
Water, IVRCL, JUSCO, Global Players (such as
Vivendi)

12. • Supplement scarce public resources.
• Investment largely limited to PPP in physical
infrastructure sector (roads, ports, power, airports,
metro, urban sector).
• Few PPPs in social sector (education, health, water
supply).
• Mixed success stories.
• Positive climate.

13. Sector Number Amount(US $ billion)
Roads 198 9.25
Ports 54 8.46
Airports 8 5.87
Railways 3 0.20
Power 35 4.1
Urban Infrastructure 69 7.88
Others 26 0.44
All Sectors 393 36.20

14.  In 2012, A.T. Kearney FDI Confidence Index
has ranked India second most attractive
destination.
 During August 2012, top 10 sectors attracting
highest FDI inflows included 12% in built up
infrastructure and 7% telecommunication.
 During the last decade, FDI entrance in the
economy was hindered because Infrastructure
investment were not paying back
 NOTE: Major factor hindering PE flows in
infrastructure sector comprise delay in getting
approvals and long GESTATION Period.

15.  The Planning Commission has projected that
investment in infrastructure would almost
double at US$ 1,025 billion, 50% is expected to
come from private sector, whose investment is
36% in eleventh plan.
12 1200
10 1,024.81
1000
8 800
6 600
4 400 Infra Invsmt. As % of GDP
229.51 259.88
2 178.17 202.38 200 Infra invstmt(US $ billion)
132.08 154.86
0 0
Base Year( 2012–13 2013–14 2014–15 2015–16 2016–17 Total 12th
2011-12) Plan

16.  Investment requirements of infrastructure
sector huge
 India growth story to continue
 50% of the population is below 25 years
 Huge domestic demand
 Need to bridge infrastructure gaps to sustain
economic growth
 Opportunities for international investors
significant
 India can leverage on its vast human capital to
successfully adopt the PPP model

17.  http://indiabudget.nic.in/es2011-12/echap-
11.pdf
 http://unctad.org/en/docs/iteiit20061a6_en.p
df
 Budget 2012: Infrastructure sector gets major
boost : North, News - India Today
 Union Budget 2011: Bonanza for infrastructure
sector - Moneycontrol.com