Construction Industry: Booming Opportunities In India

Today, India is one of the six fastest growing economies of the world and Asia's biggest Infrastructure Investment opportunity.

Construction Industry: Booming Opportunities In India

• COMMONWEALTH GAMES - 2010 in New Delhi
  The Commonwealth Games - 2010 in New Delhi throws mega opportunities for Building Material Companies, Construction Equipments & Technologies companies.
  · Commonwealth Games Village project worth US$ 40 mn.
  · Elevated Ring Road, Widening and Redesigning of Roads in and around Delhi.
  · More Subways and 15 - 20 Flyovers.
  · Sports Specialty Hospital.
  · Setting up of a Cultural Centre.
  · The Delhi Development Authority (DDA) has been asked to earmark eight to nine plots for Five Star Hotels.

• ROADS
  · The government has announced four lanning of 48 new projects with an estimated cost of US$ 12 bn. Development and upgradation of roads will require an investment of US$ 24 bn. till 2008. Private sector participation in road projects will grow significantly.
  · "The Golden Quadrilateral Plan" (5850 Kms.) for linking the four metropolitan cities of Delhi, Mumbai, Chennai and Kolkata with an estimated cost of US$ 5.5 bn.

• RAILWAYS
  · The railway sector will need an investment of US$ 22 bn. for new coaches, tracks and communications and safety equipment over the next ten years.
  · A 10 year Corporate Safety Plan of the Indian Railways envisaging an expenditure of US $ 7.24 bn. besides development of appropriate technology for higher level of safety in train operation.
  · Metro Rail Corporation projects worth US $ 12.84 bn in cities like Delhi, Bangalore, Hyderabad, Chennai, Ahmedabad and many other cities are on target.

• AIRPORTS
  · Upgradation and modernization of airports will require US$ 33 bn. investment in the next ten years.

• SPECIAL ECONOMIC ZONES ((SEZs)
  · Projects are coming up to develop Special Economic Zones worth US $ 2.5 bn.

• URBAN IFRASTRUCTURE - Township / Malls / Office Buildings Etc.
  · India has a large and growing middle class population of 300 mn people, out of which a large section is need on new houses. It is estimated that there is a national housing storage of 41 mn. units.
  · Retailing is becoming the boom industry with organized retail being a market of US$ 6 bn. The sector will need about 25 mn. sq. ft. of space by the year 2005.
  · NASSCOM-McKinsey surveys have predicted the ITES sector in India will require approximately 100 mn. sq. ft. of office space, which means a promising opportunity for the construction industry.
  · Water supply and sanitation projects alone offer scope for annual investment of US$ 5.71 bn.

• POWER
  The Ministry of Power has formulated a blueprint to provide reliable, affordable and quality power to all users by 2012. This calls for investment of US$ 73 bn. in the next five years.

• SAGAR MALA
  The "Sagar Mala" project for expansion and modernization of ports, inland navigation and maritime transport. This involve an investment of US $ 22 bn. in a period of ten years. While the government will take care of 15% of the investment, the rest will come from the private sector.

FDI IN CONSTRUCTION SECTOR IN INDIA

The Govt. of India has permitted FDI up to 100% for development of integrated townships in India last year. India is now the second most favored destination for FDI, behind China.

Beside these, there are projects coming up to develop Special Bio-Technology Parks and IT Parks.