Govt Seeks Foreign Funds For Infra Projects Worth Over $75 bn

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Government is seeking overseas investment for infrastructure projects worth over USD 75 billion in sectors like power, roads and railways over the next few years, reported PTI.

That includes highway projects worth USD 6 billion to be implemented in the next few years.

Govt Seeks Foreign Funds For Infra Projects Worth Over $75 bn
"As many as 26 projects worth USD 3.6 billion are in final preparation stages before implementation, 9 are ready to be bid out and 16 are at various stages of the bidding process," according to a DIPP paper -- Investment Opportunities in India.

The value of roadways and bridge infrastructure in India is expected to grow at a CAGR of 17.4 per cent between 2012-17, to reach USD 10 billion.

"The PPP model will continue to be the favoured way of executing the remaining NHDP phases," the paper said.

There has been an unprecedented increase in cargo handling capacity from 575 Million Metric Tonnes (MMT) in 2009 to 800 MMT in February 2014.

As part of the government's efforts to actively focus on development and upgradation of capacities across all coastal states projects in shipping for the next few years worth USD 9 billion will be implemented.

In the power sector four thermal power projects with installed capacity of more than 8,200 MW will be out for bidding in 2015-16.

About 10 projects in power sector worth over USD 19 billion will be implemented in the next five years, said the DIPP paper, which was part of the booklet circulated among wealthy sovereign funds during the India Investors Summit held on February 3.

Government has set a target of producing 100 GW of solar power by 2020 and the country offers unlimited growth potential for the solar photovoltaic industry.

Government has allowed 100 per cent FDI in the railway infrastructure segment which has opened up opportunities for participation in projects such as high-speed railways, railway lines to and from coal mines and ports, electrification and suburban corridors.

"Indian Railways has begun exploring the PPP mode of delivery and aims to award projects...Through the PPP route," the DIPP paper added.

Railway projects worth over USD 42 billion in the next few years are likely to be implemented.

The government also proposes to execute infrastructure projects on PPP (public private partnership) basis across the various infrastructure sectors.

Out of 26 road projects eight are on PPP basis. Of the 11 projects in the ports and shipping sector, 90 per cent will be executed on PPP basis. As many as 10 power projects in the next financial year will be build on PPP mode.

"Majority of projects in railways proposed for FY 2015-16 are on PPP basis," it said.

"The National Tariff Policy ensures adequate return on investment to companies engaged in power generation, transmission and distribution and to companies producing assured electricity to end users at affordable and competitive rates," said the paper.

Read more about: infrastructure
Story first published: Wednesday, February 25, 2015, 12:50 [IST]
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