Photo: For representational purpose
Although the country has improved its transportation landscape over the last two decades, much remains to be done to meet the increasing demand now and in the years ahead, says a new report released by Kearney titled ‘Harnessing the opportunities in India’s transportation infrastructure’.
The report highlights an investment opportunity of US$ 575 billion in transport infrastructure sector in India in the next five years. Roads and railways constitute 80 per cent of the total investment opportunity driven by investments in flagship projects such as Bharatmala Pariyojana, Dedicated Freight Corridor, High Speed Rail, etc. The report further highlights the delays in land acquisition, clearance, constraints in funding for infrastructure projects , lack of efficient dispute resolution mechanism as key challenges in realising the investment opportunity.
Manish Mathur, Partner and Head Asia Pacific, Transportation and Infrastructure Practice for Kearney, said, “Significant opportunities exist in various transportation infrastructure in India, prioritising the most important ones is of paramount importance. Although there are obstacles to realising the vast potential, these challenges can be overcome with a concerted and coherent strategy across the key stakeholders: Government authorities, concessionaires and contractors, and financial institutions.”
The report outlines key steps required from each of the stakeholder for overcoming the obstacles and maximising the opportunities:
Government authorities: As authorities design their transport infrastructure development strategies, they will need to focus on identifying the right funding model, ensuring robust cash flow management with comprehensive viability assessment, and enabling a vibrant ecosystem of concessionaires and contractors.
Concessionaires and contractors: With the growing infrastructure investments and greater participation from the private sector, concessionaires need to explore strategic partnerships, identify the right markers for decision-making, and ensure the quality and timeline of project delivery.
Financiers: In addition to re-evaluating the risk-reward spread in the infrastructure sector, financial institutions should collaborate with government authorities and concessionaires to develop innovative products for financing.
“With a concerted effort, today’s challenges can be transformed into an opportunity that will not only boost organic growth, drive job creation, and aid a whole gamut of industries but also help fulfil one of the most basic tenets of economic and social activity: Mobility to serve the common good,” added Mathur.
Click here for the full report on ‘Harnessing the opportunities in India’s transportation infrastructure’.
Kearney is a leading global management consulting firm with offices in more than 40 countries. The firm focuses on strategic and operational CEO-agenda issues facing businesses, governments, and institutions around the globe. Founded in 1926, Kearney has been consistently ranked among the top management consulting firms globally.
Kearney India is among the largest and fastest growing Kearney units in Asia, with a rapidly expanding consultant pool based out of their office in Gurugram and Mumbai. In India, the firm is an advisor to the foremost Indian and multinational organisations. The firm’s expertise in India spans across the full suite of critical business topics; from strategy to operations excellence; helping organisations achieve immediate impact and growing advantage on some of the most mission-critical issues.
Kearney works across industry verticals including Automotive, Aerospace, Industrial Goods, Transportation, Consumer Products, Retail, Healthcare, Oil & Gas, Metals & Mining, Chemicals, Communications, Media, Technology, IT & BPO, Private Equity, among others.
