Cost overrun share in infrastructure projects India FY 2010-2021
Infrastructure projects across India had a cost overrun share of nearly 20 percent as of December 2020. That year, over 30 percent of current projects were scheduled to have cost overruns.
Infrastructure sector privatization
The public-private partnership or PPP model has created opportunities for many private players to enter the infrastructure business within the country. The private sector became key across various segments including transport and communications. Private equity/venture capital investments for PPPs reached a record value of around five billion U.S. dollars in November 2019.
Promising results
In fiscal year 2020, a budget of over 13 billion dollars was allocated to the Ministry of Railways. This was following construction of a national highway in record time - a single day in December 2018. The National Highway Authority of India was estimated to generate a revenue close to 14 billion dollars from toll and highway amenities over the next five years. Infrastructure development seems to have become a priority for the Indian government. This increased impetus is likely to generate many opportunities for both domestic as well as international players.
Infrastructure sector privatization
The public-private partnership or PPP model has created opportunities for many private players to enter the infrastructure business within the country. The private sector became key across various segments including transport and communications. Private equity/venture capital investments for PPPs reached a record value of around five billion U.S. dollars in November 2019.
Promising results
In fiscal year 2020, a budget of over 13 billion dollars was allocated to the Ministry of Railways. This was following construction of a national highway in record time - a single day in December 2018. The National Highway Authority of India was estimated to generate a revenue close to 14 billion dollars from toll and highway amenities over the next five years. Infrastructure development seems to have become a priority for the Indian government. This increased impetus is likely to generate many opportunities for both domestic as well as international players.
