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March, 2011

According to the data released by the Union Ministry of Commerce and Industry, India’s infrastructure sector output grew 7.1 per cent in January 2011, on the back of healthy production of crude oil, petroleum refinery products and electricity.

In December 2010, the output of these infrastructure industries rose by 6.1 per cent. The six core industries account for 26.68 per cent of the country’s total industrial output. Petroleum refinery and crude oil output grew by 8.7 per cent and 10.8 per cent respectively in January 2011, up from 3.8 per cent and 9.8 per cent in the same period last year. Electricity generation grew by a healthy 9.3 per cent, compared to 6.4 per cent growth in the corresponding month last year, the data said.

The Planning Commission has projected that investment in infrastructure would almost double at US$ 1,025 billion in the 12th Plan, compared to US$ 514 billion in the 11th Plan. Of the US$ 1,025 billion, 50 per cent is expected to come from private sector, whose investment has been 36 per cent in the 11th Plan.

Infrastructure investment in India is set to grow dramatically. As per Union Minister for Finance, Pranab Mukherjee, India would require to develop a rupee-denominated long-term bond market for funding the infrastructure sector that requires an investment of around US$ 459 to US$ 500 billion by 2012.

A total of 261 projects had been approved by the public private partnership (PPP) approval committee and empowered committees and institutions with a capital investment of US$ 44.59 billion till June 2011 end, according to Mr V Narayanaswamy, Minister of State for Planning.

Meanwhile, a committee on infrastructure under Prime Minister DrManmohan Singh will conduct quarterly review of development of power, road, ports, civil aviation and railways sectors, announced the Planning Commission of India recently. Further, the cabinet committee on infrastructure (CCI) will handle specific infrastructure cases that may require necessary policy correction or solving issues affecting projects.

Propelled by spurring demand on the back of robust economic growth, truck sales in the country have seen a rise of 27.1 per cent at 28,728 units in December 2010 as compared to 22,683 units in the same month in 2009, as per the data released by the Indian Foundation for Transport Research and Training (IFTRT).


The volume of cargo handled at India's major ports over April 2010-January 2011, rose 1.1 per cent to 468.27 million tonnes (MT), as compared to 463.25 MT a year ago, data released by the Indian Ports Association showed.

The annual combined capacity of the major and non-major ports in the country will be 1.5 billion tonnes by 2012, stated by Minister of Shipping, Mr G K Vasan, while speaking at the Logistics Outsourcing Summit organised by the Confederation of Indian Industry (CII).

The Union Cabinet has given the approval to the Shipping Ministry for declaring Andaman and Nicobar ports as major port, stated Union Minister of Shipping, Mr G K Vasan.

The Cabinet Committee on Infrastructure (CCI) has approved a proposal to develop the fourth container terminal at the Jawaharlal Nehru Port (JNPT), the country's busiest port, at an estimated cost of US$ 1.44 billion. The government also cleared a proposal to build standalone container handling facility at Mumbai port at a cost of US$ 129.6 million. The project would be implemented within two years from the date of the award of the project.

According to the Department of Industrial Policy and Promotion (DIPP), the foreign direct investment (FDI) inflow into ports has been US$ 1.63 billion from April 2000 to January 2011.