Transition towards futuristic and resilient infrastructureDecember 2018Transition towards futuristic and resilient infrastructure03ContentsOverview: Sector context 05India’s infrastructure to meet its growth aspirations 05Recent policy actions reaffirm the government’s commitment to the sector 05Reviving PPP investments remains a persistent theme 06Opportunities continue to open up, but caution prevails 07Navigating through the noise: Dealing with challenges 09Infrastructure financing challenges continue to be at the forefront 09Policy and regulatory actions for a better ecosystem 09Contractual issues in an increasingly complex ecosystem 10Procedural challenges affect project progress 10Transition towards the future: Key take aways 13Reviving PPP to woo FDI in infrastructure 18Prepare the roadmap for delivery of India’s infrastructure targets 20Construction and infrastructure arbitrations: Expediting dispute resolution and clearing the road for robust infrastructure 21Connected transportation infrastructure: The coming together of roads, railways, airports, ports, and renewables 23Alternative sources and their impact on infrastructure financing 24The road towards futuristic infrastructure 27Annexure- Event agenda and speakers 28Endnote 31About Deloitte 33About ET Edge 34This knowledge paper is an outcome of The Economic Times 6th Annual Infra Focus Summit, conducted by ET Edge. During this Summit, industry leaders, policy makers, developers, technology providers, and other infrastructure stakeholders, from both public and private sector, engaged in discussions and deliberated on, the major bottlenecks and opportunities for the sector in India. The event saw participation from senior government officials working in core infrastructure sectors such as Roads, Railways, Airports, as well as Development Financial Institutions such as the World Bank, Japan International Cooperation Agency (JICA), along with industry experts.Transition towards futuristic and resilient infrastructure0504Transition towards futuristic and resilient infrastructureOverview: Sector context Infrastructure development is one of the prominent measures to ascertain a nation’s progress. It is one of the critical catalyst to unlock the development potential of the country and propel the growth of the economy. India is envisioned to become an economic powerhouse by proliferating development of futuristic and resilient infrastructure. However, for sustaining an accelerating pace of growth, it is imperative to promote investments in the sector.India’s infrastructure to meet its growth aspirationsIndia has been moving on a growth trajectory over the last few years. The country is poised to achieve a Gross Domestic Product (GDP) of USD 5 Trillion by 20251 by undertaking transformative initiatives across various sectors. Government has been taking many initiatives for boosting connectivity, augmenting capacity and fostering industrial development. At the same time, the country would require an investment of USD 4.5 trillion by 20402 for developing world-class infrastructure. The current trend of development indicates that the country is likely to meet the requirement of USD 3.9 trillion by the given time, leaving an investment gap of USD 526 billion3. The need of the hour is to fill this gap by exploring alternate sources of finance including private investments, international financial assistance/ loans, innovative financing mechanisms, and leveraging public investments to attract substantial funding from the market.Furthermore, the infrastructure landscape is changing rapidly in an era of Internet of Things (IoT) and Industry X.0, owing to the pace of development in technology. To achieve the long-term vision for cohesive development, along with the traditional infrastructure such as roads, highways, airports, railways, power grids, it is essential to focus on development of new age infrastructure such as logistics hubs, automation/ mechanisation of ports, smart grids, green buildings, smart traffic lights, and integrated traffic management systems, among others.In this context, the Government’s focus on robust infrastructure development has been gaining momentum in the recent years. India’s infrastructure sector is expected to see a remarkable journey ahead.Recent policy actions reaffirm the government’s commitment to the sectorRecent government initiatives reaffirm its commitment to invigorate the sector, with rising public spending in Union Budgets 2018-19 and 2017-18 (INR 5.97 lakh crore/ USD 84.2 billion and INR 4.94 lakh crore/ USD 69.7 billion respectively4), policy actions taken to revive languishing Public Private Partnership (PPP) projects, establishing single-window clearances for industry friendly environment, instigating government-backed models such as Hybrid Annuity Model (HAM) and Toll-Operate-Transfer (TOT) models in highways, passing of the Insolvency Resolution Act, etc. With a view to enhance connectivity, schemes such as Bhar...
发表评论取消回复