The output of India’s six core infrastructure industries, which account for 26.68 per cent of the country’s total industrial output, grew by 7.1 per cent year-on-year (y-o-y) in January 2011, on account of healthy production of crude oil, petroleum refinery products and electricity, according to the data released by the Ministry of Finance , Department of Economic Affairs. The six core sectors comprise crude oil, petroleum refinery products, coal, electricity, cement and finished steel. 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.
The investment in infrastructure is likely to rise from 5.15 per cent of gross domestic product (GDP) during the Tenth Five Year Plan period (2002-07) to about 7.55 per cent during the Eleventh Five Year Plan (2007-12). A preliminary assessment suggests that investment in infrastructure during the Twelfth Five Year Plan (2012-17) would need to be of the order of about US$ 1,025 billion to achieve a share of 9.95 per cent as a proportion of GDP, according to the Planning Commission. At least 50 per cent of the investment should come from the private sector. This would imply that public sector investment in infrastructure would increase from US$ 262.25 billion in the Eleventh Plan to around US$ 409.92 billion in the Twelfth Plan at 2006-07 prices. This requires an annual increase of about 9.34 per cent in real terms.
The volume of cargo handled at India's major ports over April 2010-January 2011, rose by 1.1 per cent to 468.27 million tonnes (MT), as compared to 463.25 MT a year ago, according to the data released by the Indian Ports Association.
Traffic handling at major ports is projected at 615.70 MT for 2011-12, according to Union Shipping Minister G K Vasan.
The Maritime Agenda 2020 was recently launched by Mr G K Vasan, Union Shipping Minister, which envisaged investments worth over US$ 33 billion in the maritime sector. The agenda, released on January 14, 2011, aims to create a port capacity of around 3,200 MT from 617 MT as on March 31, 2010, to handle the expected traffic of about 2,500 MT by 2020. A majority of the projects will be implemented through the public-private participation (PPP) model.
Mr Vasan further added that private investments in the port sector have increased significantly over the years. He stated that till now 24 projects worth US$ 1.29 billion were taken up under the PPP model and were completed successfully, while another 19 projects worth US$ 2.5 billion are being implemented.
Foreign direct investment (FDI) inflow into ports has been registered at US$ 1.64 billion from April 2000 to January 2011, as per data released by Department of Industrial Policy and Promotion (DIPP).
Passengers carried by domestic airlines during January-February, 2011, were registered at 9.51 million as against 7.95 million in the corresponding period of 2010, thereby registering a growth of 19.6 per cent, according to data releases by the Ministry of Civil Aviation.
Addressing the India Aviation meet, organised by the Confederation of Indian Industry (CII) on March 15, 2011, Mr Nasim Zaidi, Civil Aviation Secretary said the passenger traffic was expected to cross the 180 million mark by 2015 and 300 million by 2020.
The FDI inflow into air transport (including air freight) has been recorded as US$ 368.61 million from April 2000 to January 2011, as per data released by DIPP.
Significantly, three private equity (PE) funds plan to invest close to US$ 300 million in an unlisted company of GMR Group, which runs the Delhi and Hyderabad airports.