‘Infrastructure sector in need of diversified financing ecosystem’

‘Infrastructure sector in need of diversified financing ecosystem’

Investments will grow to ₹50-lakh crore by 2022, says ratings agency Crisil

MUMBAI, OCTOBER 26:  

source Rahuleink's Blog - WordPress.com

edited by kcontents

Crisil Infrastructure Yearbook 2017, released in New Delhi on Thursday, estimates infrastructure investments will grow to ₹50-lakh crore in the five fiscals to 2022.

Infrastructure investments in the five fiscals before 2017 stood at ₹37-lakh crore, the agency notes, which translated to ₹7.4-lakh crore per year, or 5.8 per cent, of GDP, annually. This is 56 per cent more than what was invested between fiscals 2008 and 2012. Five sectors – power, roads, telecom, irrigation and railways – accounted for about 83 per cent of all such investments in the past decade.

In the next 5 years, Crisil estimates infrastructure investments to grow to ₹50-lakh crore; given the GDP growth will stand at around 7 per cent, infrastructure investment will account for around 5.5 per cent of the GDP and the private sector investments will remain subdued at around 28 per cent of total investments in infrastructure.

Power, highways, transport and urban sectors could account for around 77 per cent of this spending, the agency notes.

“Spending of such magnitude requires expeditious resolution of the problem of stressed assets in banking, front-ending of bankable projects, comprehensive retooling of public-private partnership frameworks, and deepening of the infrastructure financing ecosystem, which is of tremendous importance,” said Ashu Suyash, Managing Director & CEO, Crisil.

While the government has already taken some measures to address many of these issues, with the latest being the announcement of recapitalising capital-starved and bad loans-laden public sector banks to the tune of ₹2-lakh crore, more could be done for strengthening and diversifying the financing ecosystem for infrastructure development, Crisil believes.

http://www.thehindubusinessline.com/economy/india-needs-rs-50-lakh-cr-infra-investment-over-5-yrs-crisil/article9926184.ece

kcontents

.