Infrascape 2015

Infrastructure plays a very significant role in economic development. The government has outlined various infrastructure development initiatives in the country, which include smart cities, nationwide connectivity networks of roads, power, gas and water grids. Ascendas has partnered with three State governments to develop IT Parks in Karnataka, Tamil Nadu and Maharashtra. Through our investments in IT and business parks, we are proud to have been able to play a small part in India´ growth. Currently, there are over 390 companies operating in our parks employing over 85,000 people in India. As we continued to invest in and grow our IT parks, we are also witnessing India´ potential to grow as a manufacturing hub. There is demand for good quality industrial space and we have invested in an industrial township in Chennai called OneHub Chennai, to cater to that demand.
- Lee Fu Nyap, CEO, Ascendas India

The year 2015 looks very promising for the entire Indian infrastructure sector. Some major government initiatives like the announcement of 100 smart cities, Make in India campaign, promotion of tourism in India and now the proposed Served from India campaign - are all extremely positive for the sector and are sure to drive long term growth. The government´ willingness to remove the roadblocks in the roads and highways sector, and introducing newer forms of transportation, cleaning of the major rivers and thoughts to promote inland water transport and the concept of ´Make in India´ have boosted the morale of the entire sector.

- Ashish Tandon, MD, Egis in India

Policy hurdles such as delay in awarding projects, environmental clearances, land acquisition and lack of cheaper financing options still continue to be pertinent to the sector. Particularly, the fund crunch issue is a major challenge for the industry.

However, while the infrastructure sector continues to operate in a difficult framework in India, we are optimistic about reviving growth in the infrastructure sector. With the government´ proactive policies and announcements to support the private sector´ involvement in Indian infrastructure, the future looks promising for EPC companies in year 2015. Infrastructure is picking up in India and these moves will certainly pave the way to recovery for the infrastructure sector. Finally, over the years, India has shown that it has a momentum and dynamic of its own and is less impacted by the economies of developed countries than would ordinarily have been imagined.

- Shantanu Karkun, President & CEO, B&I, Punj Lloyd

We are pleased to have secured many power projects in India, where the construction of the power transmission line will help supply up to 2,500 megawatts of electricity to the North Indian grid. We are presently working on the 400 KV Uttarakhand Power transmission line, having proved our credentials in the power sector by delivering a thermal power project and the Coal Conveyor system in Orissa besides the solar power project in Tamil Nadu. We see several lucrative opportunities for all our businesses in India. Our German subsidiary Passavant Energy & Environment has already won two major contracts this year in Rajasthan and Gujarat.
- Khaldoun Al Tabari, CEO and Vice-Chairman, Drake and Scull International

The government has implemented various policies such as 100 per cent FDI in the electronics hardware-manufacturing sector, 51 per cent FDI in multi-brand retail trading and 100 per cent in single-brand retail trading which will lead to more foreign investment in India. Also, the government´ focus on the implementation of an ambitious infrastructure development programme will also increase scope for ease of doing business for various companies which will lead to enhancing the supply chain management resulting in a faster economic growth. We are reforming business to ensure that we promote the production and consumption of products and solutions in India.
- Manish Sharma, MD, Panasonic India

There is positive sentiment and business confidence in the new government and its vision - ´Make in India´. With the new government focused on improving infrastructure development, we are optimistic that the infrastructure sector will gather pace in the coming years. If the ´Make-in-India´ vision is implemented effectively it will help revive the market and encourage investments in the sector. Coal plays a key role and the availability of this commodity is a key concern. Power supply is critical for Indian economic development. Material handling equipment such as conveyor system and stockyard equipment in power plants and ports support the coal logistics infrastructure. The government allowing 100 per cent FDI in port development is a good sign which shall encourage investment in the sector. We foresee a good growth in the demand of products for port based facilities.
- Sivasubramanian Natarajan, MD, ThyssenKrupp Industries India

Given India´ demographic advantage and a huge captive market with a majority government at the helm, the country today has a pre-eminent position among emerging economies. A number of initiatives taken by the government in the last six months are also expected to start showing results. It is currently carrying out spadework by ushering in policy measures and streamlining processes. The new government also looks committed in its resolve to rebuild and expand India´ infrastructure to match the growing demand and rising aspirations of a young country. Big ticket investment in the infrastructure sector can also address the key issue of job creation. We are already participating in a number of transport projects across the country and already have a robust presence across the energy. Smart cities are another key area where we expect to make a sizeable contribution.
- Rathin Basu, Country President, ALSTOM India & South Asia

The future success of urban centres in India rests on transportation networks that offer interconnected mobility by linking different modes of transportation seamlessly. Development of transport infrastructure in India is growing at a rapid pace and today there is wide variety of modes of transport available û rail, road, air and water. Several aspects of the transport sector are still riddled with problems due to outdated infrastructure, administrative issues, last mile connectivity and lack of investment. Many projects are still stuck due to funding or administrative issues and there should be clear focus on the government to execute/approve these projects in 2015.
- Harsh Dhingra, Chief Country Representative, India, Bombardier Transportation

Having observed the new government´ working and measures taken to boost the economy and push growth, how will this change the scenario as the political party at the Centre galvanises the industry in the short, medium and long term? Infrastructure is one of the top priorities for the Indian government. The right policy framework will give confidence to both domestic and international investors and create a competitive environment to deliver cost-effective services to end-users. In the last one year, we have seen positive momentum on policy framework and clearances for projects and with the continuation of this momentum, we should see a lot more activity in the next few years.
- Shalabh Tandon, Manager, Infrastructure and Natural Resources, South Asia, IFC

Things are looking better for the country with the positive sentiment that we are seeing across the board. Serious efforts are evident to bring the economy back to a growth trajectory and get our GDP to the high levels it had scaled just a couple of years ago. Perhaps, one of the most important growth drivers is infrastructure development and the clearance of some large projects in recent weeks clearly shows that we are moving in the right direction. For growth to be sustained and inclusive, there has to be far greater focus and action-orientation in getting large projects off the ground quickly.
- S N Subrahmanyan, Member of the Board and Senior Executive Vice President- Infrastructure & Construction, Larsen & Toubro Limited

India´ infrastructure sector is poised to grow at 7-8 per cent next year following the forward looking plans and policies of the new government. The strong mandate will stimulate economic growth, positive surge by implementing desired policies, removal of barriers to foreign investment and other initiatives being taken that will boost infrastructure development and the outlook for the sector appears positive. The new government is expected to go intensely on implementing infra blueprint seen in the development of China.
The new government tends to put its primary focus on infrastructure development and may continue with the estimated $1 trillion spent on infrastructure till 2017 as per Twelfth Five Year Plan. India´ rate of urbanisation is high and the ambitious 100 smart cities project is about to take off that will require a number of infrastructure planning and development efforts.
- Sushil Sethi, Managing Director, SPML Infra Limited

The sector did lag behind due to delay in land acquisitions and environment clearances. Political blockage, heavy interest, cost burden and working capital crisis added to the woes of infrastructure companies but with the change of guard at the Centre things are looking up. The sector is ramping up and scenario is changing; and we believe that the scenario will change in the coming year with the new government policies and plan for economic growth and long term investment. Wait and watch for the fruits of the changes but the environment is definitely positive for our sector. Leading two organisations which are poised at the threshold of their growth curve is an exciting proposition. The future of the sector is bright and so is the future of Synefra and Aspen.
- JR Tanti, Managing Director, Aspen Infrastructure Ltd

India´ infrastructure sector has suffered due to dull macroeconomic conditions and delay in key policy related decisions. This situation is however will start to change 2015 onwards with the focus of the new government on logistics infrastructure creation. We expect the sector to register double digit rate in 2015 on the back of government plans to invest on infrastructure over the five years to 2017. We are hopeful that the government´ intent to boost PPP in infrastructure sector to build new ports, enhance connectivity of existing ports, dedicated freight corridor, multi-modal transportation system, high speed trains will boost the sector in the coming year.
- Chander Agarwal, Joint Managing Director, TCI

Between RBI´ policies that are being put in place to turnaround the economy and a strong government that is making grass root level changes, there will be renewed interest in the infrastructure sector. Other measures that are on the new Government´ agenda are creating a business friendly environment and kick starting the infrastructure sector. A number of policy reforms are expected in the coming months to provide the required impetus to the sector. We have already seen efforts to restart the stalled projects, an attempt to provide better power supply, open arms to foreign investment and the announcement of the target-based monthly monitoring of projects.
- Arun Chandran, Managing Director- SynergiZ Global Services Private Limited & Project Director (Parsons Brinckerhoff), L&T Hyderabad Metro Rail

With strong government emphasis on infrastructure development, the outlook for the sector appears to be quite optimistic in 2015. The sector has gained a lot of thrust and we are seeing momentum towards growth. The proposed smart cities, enhanced metro rail connectivity, river interconnection, cleaning of rivers and increased focus on solar power is expected to give a boost to infra development in India. Further, reports of activation of stuck infra projects would also lead to speedy progress and development of infra sector. Moreover, the anticipated big spend by the government is also expected to translate into enormous opportunities for sub-sectors like T&D, Water & Railways.
- Ramesh Chandak, Managing Director & CEO, KEC International Limited

In addition to the foundation requirements of on-time performance, frequency, reliability and convenience in transit systems, people expect a high-quality service provider, with an offer tailored to their needs. Passengers want a local, friendly, responsive service; they want to feel unique; they want to be considered, kept informed and reassured when the unexpected happens. Homo Urbanus expects a --´spirit of service´ centered on quality and a proactive attitude toward the customer. Delivering this has become a key concept that cuts across all sectors of activity - an essential lever for improving satisfaction and increasing trust, as well as being a predominant factor in brand choice and loyalty. We are very enthusiastic about India´ immense growth potential. Our company has consolidated its experience of Indian conditions. This experience includes a range of international technical experts who have an understanding of Indian conditions.
- Apurba Dhar, Director - Business Development, RATP DEV TRANSDEV INDIA

The first half of the year 2014 had been lacklustre in absence of any significant policy announcements ahead of the general elections. Not many new projects were announced as everyone wanted to wait for the elections to get over. Thus, the Construction Equipment / Material Handling businesses, which depend largely on the activity in the infrastructure sector, remained lacklustre.

However, there has been some activity of late on the back of renewed optimism generated following the new stable government in the Centre. With the hopes of end of policy paralysis, the Indian economy certainly looks to be on the path of recovery and an increase in demand for capital equipment is a natural outcome of a growing economy. Renewed push is expected in infrastructure projects and other related areas. We at ElectroMech are expecting an upswing in the coming months.- Tushar Mehendale, MD, ElectroMech Material Handling Systems

We definitely believe that India is a hot spot for global players. The country has seen an influx of large scale manufacturing projects in the last couple of years, thus opening avenues for global players mostly in the automotive, industrial and construction equipment, metals industries as well as IT services industry. Having said that, we can also see that efforts are being put by large firms and the government together, to develop the country´ attractiveness for strategic operations, such as R&D centres for infrastructure development and other services. This is testimonial to the fact that investors are showing strong confidence in India to maintain this performance in the long term.
- Harinder Jit Singh, President, Sandvik Construction, India

The Indian economy is poised for positive outlook with the reforms proposed by the new government. The reforms once implemented would trigger growth in all core sectors primarily the infrastructure sector which will emerge as a key driver of growth in the second half of next year. With the new government focusing upon implementing a business friendly strategy aimed at reforming the regulatory framework, removing obstacles for existing projects and reviving the investment cycle, India could well lead growth amongst the developing economies in the infrastructure sector. The government´ decision to ease FDI rules for players in the infrastructure sector will speed up project turnaround time.
- Sandeep Selot, Director-Marketing & Strategy-Energy Business(India Region), Schneider Electric India

2015 could be a strong year for the Indian economy. By setting up 10,000 MW target for 2017, the solar capacity achievement period has been expedited. With this focus the vision and policies being introduced will certainly provide a much needed fillip to the industry at large. Amidst infrastructure-at-large renewable is a priority segment. We are already seeing a balanced holistic view towards the sector. Doing away of the anti dumping duty is an instance where the immediate need of solar generation was given predominance. By bringing forth the solar targets to 2017 from previous 2022 year target, a much needed impetus has been provided to the States.
- Vineet Mittal, Vice Chairman, Welspun Renewables Energy