INDIA’S INFRASTRUCTURE INDUSTRY

Group Members :

Name Roll No.Rajesh Khatu M1128Nitin PillamarapuM1144Amit Kamble M1126Mamta Gajengi M1114Sriveni Gajengi M1115

INFRASTRUCTURE Infrastructure is the basic physical and

organizational structures needed for the operation of a society or enterprise.

The term typically refers to the technical structures that support a society, such as roads, water supply, power grids, telecommunications, and so on.

Functionally, infrastructure facilitates the production of goods and services.

TYPES OF INFRASTRUCTURE

Hard Infrastructure

Soft Infrastructure

HARD INFRASTRUCTURE

Transportation infrastructure

Energy infrastructure

Water management infrastructure

Communications infrastructure

Hydel & Nuclear sector.

SOFT INFRASTRUCTURE

Institutional infrastructure

Industrial infrastructure

Social infrastructure

INFRASTRUCTURE IN VARIOUS SECTORS

India has a long coastline of 7,517 km. The existing 12 major ports control around 76 % of the traffic. Due to globalization, India’s ports need to gear up to handle growing volumes.

Indian ports are projected to handle 875 million tones(MT) of cargo traffic  by 2011-12  as compared to 520MT in 2004-05

Projected Investment in major ports $16 billions and minor ports $9billion during 2007-12.

Ports infrastructure

Passenger and cargo traffic slated to grow at over 20% annually and set to cross 100 million passengers per annum by 2010 and set to cross cargo traffic of 3.3 million tonnes by 2010.

Mumbai and Delhi airports have already been handed over to private players. Kolkata and Chennai airports will also be developed through JV route.

Airports infrastructure

Above 100000km & run about 11000 trains every day carrying about 13 million passengers and 1.25 million tones of freight every day.

PPPs is enormous Construction of 4 mega bridges costing about

US$ 750 million is also included in the programme

Rail network in Mumbai area at a cost of US$900 million

Railways infrastructure

Central government has already taken steps to increase capacity by building Ultra mega power projects (UMPPs).

There is a plan to increase Nuclear power capacity from 3900MW currently to 10000 MW by end of 11th plan.

Power Infrastructure

Out of the 3.38 million Kms of Indian road network, only 47% of the roads are paved.

Carry 65% of Frieght & 85% of Passenger traffic.

Highways and Roads Infrastructure

Growing over 30% annually--driven by huge investments by both the Government and the private sector in infrastructure development.

It is estimated that there is USD860 billion worth of construction opportunities in India

Construction Infrastructure

Increase to 300 MMT by the year 2010. Capacity of 110 million tonnes required by 2010. 100% foreign investment has been allowed in this

sector. Oil import constitute largest share of total import

Oil, Gas –Hydrocarbon Infrastructure

What is Indian Government doing about Infrastructure?

• The amount of money spent on infrastructure will be raised to 8% of GDP (earlier, infrastructure spending was only 4.6% of GDP)

• One Half of all new investments in the 11th plan will be in infrastructure

• The planning Commission has estimated that a total investment of $450 Billion in infrastructure is required over the next 5 years to meet India’s infrastructure needs over 5 years

Actions taken in the 11th 5 year plan - 2007- 2012

Other Actions

IIFC - India Infrastructure Finance Corporation•The Govt has set up the IIFC to help fund infrastructure projectsin India. IIFC will be owned by the government

•IIFC will lend money at low rates to public and privateinfrastructure projects. This will help encourage more projects asthe cost of financing is very low.

•Since the loans that the IIFC takes are guaranteed by thegovernment of India, IIFC is able to borrow and lend at lowerrates.

New schemes to aid infrastructure development•The Government has initiated the Jawaharlal Nehru NationalUrban Renewal Mission (JNNURM) to improve Urbaninfrastructure

•The Bharat Nirman program has been instituted to improveinfrastructure in rural areas

• Public sector involvement is not adequate.• The government has proposed India Infrastructure

Finance Company (IIFC) and formulated a scheme to support PPPs in infrastructure.

• The government has proposed a flexible funding scheme

• The Government of India has announced a pragmatic “SEZ” policy

• SEZ is treated as a foreign territory and units located in it are not subject to either customs tariffs or domestic duties

New Institutional Mechanism for PPP:

Special Economic Zone (SEZ) – A New Policy

Private sector is being involved

Targets set for the Future

According to the 11th 5 year plan, the followinginfrastructure targets have been set for thefuture (2007-2012)

Additional 10 million hectares of assured irrigation willbe created by 2009.

INR 15,000 Cr to be spent on road maintenancealone.

1000+ rural habitations to be connected with roads by2009.

Port capacity will be increased from 520MT to 800MT

575 Million Telecom Subscribers by 2012.

60000 MW of new power is to be added by 2012.

ROLE OF TECHNOLOGY IN INFRASTRUCTURE

Inventions of new machines.

Usage of computers.

Introduction of Softwares.Eg. Autocad,2D,3D

ROLE OF TECHNOLOGY IN INFRASTRUCTURE

Use of good quality of Cement mixtures.

Carbon steel

High strength steels

Heat-treated carbon steels

Good Quality of steel used in bridges:

TOTAL POTENTIAL$475 billion worth of investment is to flow into India’s infrastructure by 2012.Construction sector will require an investment of 14,000 billion in the next 5-6 years

POTENTIAL

Construction and Real Estate Requirement by 2010

Housing: 25 million new dewelling units  Office space: for IT/ITES: 180million sq.ft   Commercial space for organised retailing: 200 million sq. ft.   Hotels & Hospitality: 1,25,000 new  hotel rooms

GROWTH RATE

3.5% in 1996- 1997 4.6% in 1997-1998 Indian construction industry included US $105bn

in 2008 and is estimated about US$250bn by 2012.

An average growth of around 15% is estimated between 2008-2012.

The construction industry contributed nearly 8.5% to India's gross domestic product (GDP) in 2007.

And expected to contribute 17% to GDP by 2012.

manufacturing16%

trade14%

communication11%

agriculture(crop)10%

construction10%

real estate,ownership of dwellings & business

services8%

banking & insurance8%

other services7%

transport by other means

6%

Rest10%

Contribution to Growth (2002-3 to 2007-8)

TOP PLAYERS Larsen & Toubro Ltd. (L&T)

Punj Lloyd group (1982):Total income of the company is

Rs.10,539 cr.It has recently received a solar based

contract.

Jaiprakash Associates (1979):Its into Engineering and Construction,Cement,Power,Hospitality,Highways and Realstates.Its revenue is around Rs.10,320 cr

CONT……….

Lanco Infratech Ltd. (1994) : Its revenue is around Rs.9,4 57 cr.

“Fastest growing Infra company in India”Two road projects in Karnataka.

Nagarjuna Construction Co. (1978):“Most Dynamic Infrastructure company in India”Its total revenue is Rs.5,897 cr.It has achieved 1 Billion turnover in 1995

IVRCL Infrastructure & projects Ltd. (1990):

“Builders for modern India”Its turn over is Rs.5,841 cr.Bot toll project of Rs.3,100 cr

Simplex Infrastructure Ltd. (1924) :Headquarters in NewyorkTurn over Rs.5,984 cr.

CONT……….

GMR Group (1978) :Indra Gandhi International Airport in DelhiG.M.Rao chairman said, “With 3 airports,13 power plants 9 highways we have positioned ourselves as a responsible corporate citizen and as a strong infrastructure developer known for world class quality delivered on time ”

Gammon India (1922):It got contract of Rs. 631.81 cr. for constructing bridge over Yamuna river at Wazirabad.Contract of Rs.308 cr. from Jindal power for civilworks

CONT……….

Hindustan Construction Co. :Founded in 1926.Revenue Rs. 3,975 cr.Bandra Worli Sea link was formed by

HCCMumbai pune express highwayLavasa hill city (Pune)

CONT……….

LARSEN & TOUBRO LTD

L&T Ltd. founded in 1938.

Founded by Mr. HHL & Mr. Toubro.

CEO of L&T is Mr. A.M. Naik.

CONT……….. Turnover of L&T is approximately Rs-35000 cr.

The construction businesses of Larsen & Toubro cover more than 80% part of the revenue pie.

Today Larsen & Toubro Limited is a leader in construction and engineering in India.

The Larsen and Toubro subsidiary Engineering Construction & Contracts (ECC) division is India's largest construction organization.

L & T ENGINEERING & CONSTRUCTION

Roads Gujarat Toll Road Investment Company

Limited (GTICL) - 51 Km, four-lane toll road from Ahmedabad to Mehsana

Gvk Jaipur-Kishangarh Expressway Limited (GVK-JKEL) - a six-lane expressway on NH-8

CONT………..

Bridges L&T Western India Tollbridge Limited

(L&T-WITL) - construction of the two-lane bridge across river Watrak on NH 8.

L&T Panipat Elevated Corridor Private Limited (L&T-PECPL) - construct 3.4 km six lane elevated flyover on NH 1 in Haryana

CONT………..

AirportsBangalore International Airport

Limited (BIAL) - construction of a 4000-m runway, a state-of-the-art terminal building and other infrastructure needed to efficiently manage a modern airport in a joint venture with KSIIDC and (AAI) and Siemens.

CONT………..

IT Parks L&T Infocity Lanka Private Limited

(LTILPL) - project management services and promoted the IT facility for HSBC in Colombo.

Vizag IT Park Limited (VIPL) - IT Park project for HSBC Electronic Data Processing India Private Limited (HDPI) at Siripuram, Visakhapatnam.

CONT………..

Residential Units L&T Arun Excello Realty Private

Limited - an integrated township "Estancia" on GST Road, Chennai.

L&T Vision Ventures Limited - to develop a township in Vizag on a 55 acre land

CONT………..

Commercial Complexes CSJ Infrastructure Private Limited - to

develop an integrated commercial complex in Chandigarh.

L&T Crossroads Limited - a JV between L&T and Piramal Holdings Limited, has developed a covered car parking spaces (7 levels) and air-conditioned commercial Other projects include building of area ports and water supply projects.

KHALSA HERITAGE MUSEUM

Popularly known as the ‘Ajooba’

Museum covering 6500 square metres.

After completion this Museum will be the world’s largest cultural and historical museum.

PROJECT COST

The total construction cost of this project, including exhibits, is estimated at Rs. 224 Crores (US $56.00 millions). To date approximately Rs. 132.50 Crores (US $33.15 millions) have been spent on the project. An additional amount of Rs. 140 Crores (US $35 millions) will be required initially as a corpus fund for operations and maintenance

CAREER OPPORTUNITIES

Engineering Architecture B.A., B. Com students Management students IT students Building Maintenance services Daily wages & monthly wages workers

GOVERNMENT POLICY FOR (FIIS)

To encourage feign funds flow into the infrastructure sector, the Financing Ministry has allowed (FIIs) also to invest in unlisted companies. This was aimed at helping infrastructure companies as they would not be in a position to list their shares in the initial phase. FIIs now deploy 100 per cent of their funds in corporate debt.

KEY CHALLENGES

Historical project data for strategic decision making during tendering.

Project planning & controlling in multi-company group.

Integrated resource : material, manpower,

equipment planning, cost and utilization.

CONT………..

Duplicate material codes and manual material.

Monitoring, Controlling project scope, schedule,cost, budget, revenue and its variations.

Collaboration with external agencies. Timely project completion within

budget. Quality assurance & controlling.

CURRENT & UPCOMING PROJECTS MRTS, Monorail,

Railway Waterfront Devel

opment, Kochi Mixed Use Develo

pment, Bengaluru

CONT………..

IT SEZ’s for TCS Trombay

Re-Development Project

Ramanujan IT SEZ, Chennai

Navi Mumbai Airport

CONCLUSION

We would like to conclude here by saying that as India is a developing country more & more infrastructural changes will occur. Infrastructure Industry will be at a great boom & this industry will contribute a high percentage to India’s GDP.There are good opportunities for young stars like us to develop the career in infrastructure.

REFERENCES….

www.indiainfraguru.comwww.larsentoubro.comwww.wikipedia.comwww.lntecc.com

THANK YOU………………