A Crisil Research report expects residential unit sales in 10 smaller cities to account for approximately Rs 18,000 crore in 2012. The report says smaller cities attract real estate developers as they offer price stability and growth prospects. Crisil has said 65 sub-markets in cities like Bhopal, Bhubaneswar, Coimbatore.
The raw material of the construction industry lies in the strength of its cement, without which there would be no strong groundwork. India’s cement sector posted a modest recovery in 2011-12 with demand rising 6.6 per cent compared to a mere 4 per cent increase in 2010-11. The sale of cement, rose to 223.02 million tonne in 2011-12 from 209.5 million tonne in 2010-11 whereas production expanded 6.2 per cent to 223.6 million tonne against 210.5 million tonne.
About Rs 42 lakh crore infrastructure spends lined up till fiscal 2021 amid sharpening government focus on roads, railways, irrigation, and urban infrastructure, according to CRISIL Research. The four segments of roads, railways, irrigation, and urban infrastructure are expected to account for over 68 per cent of infrastructure investments over the next five years.
The government’s move to reinvigorate Indian Railways offers unprecedented business opportunities worth Rs 6.7 trillion in the five years to 2020, perhaps the largest anywhere barring China, as per a CRISIL research.
The equity IRR (internal rate of return) of the first bundle of highways being auctioned under the toll-operate-transfer (TOT) model would range between 12 per cent and 13 per cent, based on the National Highways Authority of India’s (NHAI) initial estimated concession value, an analysis by CRISIL Research shows.
CRISIL Research estimates that the first 75 operational highway projects tendered under the toll-operate-toll (TOT) model may fetch around Rs 40,000 crore, much lower than what the government had initially estimated.
With the Narendra Modi Government proposing to award Rs 500,000 crore worth of highway contracts in the last two years of its tenure, road construction companies are upbeat about the upcoming opportunities, which will span India.
CRISIL Research forecasts 11 per cent CAGR in lending to micro, small and medium enterprises (MSME) in India, over the next two fiscals, way faster than the ~7 per cent growth anticipated in bank credit to India Inc.