Over the past 10 years, construction has been contributing to India's GDP in a big way. From a 5.8 per cent, today it contributes to 7.3 per cent of the total GDP. The investment multiple is set to grow on an average by 2.5 times across the infrastructure spectrum.
Ajay Gupta, Head-Infrastructure Finance, Investment Banking, HDFC Bank While the government appears to be on a fast track with its recent efforts towards approving the Rs 1.83 trillion worth of infrastructure projects, banks and NBFCs continue to find it difficult to mitigate the unknown risks such as regulatory clearances, land acquisition and coal supply.
Ironies have a way of getting lost in the rodomontade that is economic development rhetoric. On August 9, 2013, 68 years after the world's first atomic bomb was dropped on Nagasaki and paved the way for the Japanese city and nation to rise from the ashes in an exemplary case of reconstruction, the closed-group round table discussion dubbed 'Quick Solutions to Bridge Project.
GARIMA P traces the progress made by private equity funds in real-estate funding in the country in the wake of the economic slowdown.Caught between the devil and the deep blue sea, private equity (PE) funds in the country are facing trying times. Exit opportunities have narrowed with profit margins also dipping.
A combination of a good rainfall, improvements in economic indicators and the urgent rollout of stranded projects by the government bode well for India's construction sector. With such positive signals the industry is hoping the clean-up act is for good, reports CHARU BAHRI.
Bank credit is fast running out. Instruments and financiers to support the next wave of infrastructure development are works in progress. While infrastructure finance appears to be transiting towards maturity, Charu Bahri wonders if it is happening quickly enough.