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Infrastructure

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Infrastructure Sector in India

December, 2012

Introduction

Infrastructure development in India has contributed majorly in the country's economic transformation and growth during the last decade. Roads, ports, railways and power are key segments of the infrastructure sector. Some of the key facts related to the same are-

  • Indian Shipping segment, with 187 minor ports and 13 major ports, is spread across nine maritime states
  • The Indian Railways network is spread over some 64, 000 km, with 12, 000 passenger and 7, 000 freight trains plying each day from 7, 083 stations carrying around 23 million travellers and 2.65 million tonnes (MT) of goods daily
  • Indian road network is the second largest in the world with a total length of 4.1 million kilometres (km)

While the Railway Vision 2020 aims to improve the operating ratio to around 75 per cent by 2017 by clocking year-on-year (y-o-y) growth of 8-10 per cent, Indian ports are estimated to handle 2, 000 MT of cargo by 2020 from the current level of 1, 000 MT.

Moreover, the total investment for the road sector is projected at Rs 9.20 lakh crore (US$ 167.55 billion) during the Twelfth Plan (2012-17), of which the Central and States would contribute Rs 3.58 lakh crore (US$ 65.19 billion) and Rs 2.66 lakh crore (US$ 48.44 billion), respectively, representing about 68 per cent of the total investment. Meanwhile, the private sector is anticipated to account for 32 per cent or Rs 2.94 lakh crore (US$ 55.6 billion) of the total investment.

Facts and figures pertaining to these sub-segments are discussed in detail hereafter-

Roads

The Indian Government awarded projects for construction of 7, 900 km of highways in 2011-12 while Dr Manmohan Singh, the Prime Minister of India, has set a target to build 9, 500 km of national highways in 2012-13.

Foreign direct investment (FDI) received in the sector construction activities (including roads and highways) during April-September 2012-13 stood at US$ 644 million, according to statistics released by Department of Industrial Policy and Promotion (DIPP).

Railways

The Indian Railways network is spread over some 64, 000 km, with 12, 000 passenger and 7, 000 freight trains plying each day from 7, 083 stations carrying around 23 million travellers and 2.65 MT of goods daily.

The Indian Railways generated revenues of Rs 58, 649.83 crore (US$ 10.68 billion) during April-September 2012-13 as against Rs 48, 963.19 crore (US$ 8.91 billion) during the corresponding period last year, registering an increase of 19.78 per cent. While the total goods earnings increased by 24.30 per cent and total passenger revenue earnings shot up by 11.15 per cent.

The revenue earnings from other coaching amounted to Rs. 1, 510.38 crore (US$ 275.03 million) during April-September 2012. The total approximate numbers of passengers booked during 1st April - 30th September 2012 were 4, 274.87 million as against 4, 121.99 million during the same period last year, indicating a growth of 3.71 per cent.

The cumulative FDI inflow into the railways related components sector stood at US$ 247.77 million from April 2000 to September 2012, according to statistics released by DIPP.