India’s US$1.5 trillion investment plans
By Andy Brown05 July 2021
The construction industry in India will enjoy strong growth due to the government’s National Infrastructure Pipeline (NIP) and ambition to make India a US$5 trillion economy by 2024, according to a new report, Construction in India, by India Infrastructure Research.
NIP has projected a capital expenditure of INR111 trillion (US$1.5 trillion) to be spent from 2019-25. Over 70% of this has been allocated to four infrastructure sectors: energy (24%), roads (19%), urban infrastructure (16%) and railways (13%).
The power sector is expected to see investment of INR14.10 trillion (US$190 billion) during 2020-25, with a further INR1.5 trillion (US$20 billion) for nuclear power generation channelled through the Nuclear Power Corporation of India (NPCIL). Within spending on power, some INR9.3 trillion (US$125 billion) of capital expenditures will be directed to renewable energy projects.
In roadbuilding, the main vehicle for investment is the Bharatmala Programme, a national umbrella scheme which has the target of completing 35,000km by 2024-25. The investment envisaged for this under the NIP is INR20.34 trillion (US$275 billion).
Railway construction is set to receive investment of over INR13.67 trillion (US$185 billion) by the end of the 2024-25 financial year. This is for a combination of upgrades to existing lines, such as line doubling and gauge conversion as well as the building of 17,000km of new track. Investment will also go to new flagship projects, such as dedicated freight corridors and high-speed rail corridors.
In the metro rail segment, a capital investment target of INR5.73 trillion (US$75 billion) has been set for the sector by 2025, while airport development is another big opportunity for the construction industry, with opportunities put at INR1.43 trillion (US$19 billion).
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