Road construction to be most crucial, followed by affordable housing
ROADS & HIGHWAYS

Road construction to be most crucial, followed by affordable housing

In these five years, the Government needs to focus on getting private-sector participation on board. As Jagannarayan Padmanabhan, Director, CRISIL Infrastructure Advisory, says, “It is about time we get the private sector’s active participation. And obviously, the other elephant in the room is bank credit and how to get it channelled to the private sector.”

The Government is likely to focus on the programmes initiated during its earlier term like Bharatmala, Sagarmala, smart cities, AMRUT and Namami Gange. The roads sector is expected to be the most crucial, followed by affordable housing. Smart cities have not quite taken off as they require funding from states and municipalities but have the potential to forge strong backward linkages with the rest of the economy. While irrigation will see limited contribution from the Centre (though will remain high priority at the state level), water-related projects like inland waterways, river cleaning and water supply are expected to be other key focus areas.

Additionally, in the ICRA report, Shubham Jain, Group Head & Vice-President - Corporate Ratings, ICRA, mentions the opportunities that construction companies can look forward to in the next five years:

  • For roads, the manifesto mentions constructing 60,000 km of National Highways over the next five years, at an average rate of 12,000 km per year. Given that the pace of highway construction has grown significantly over the past four to five years (increasing from 4,410 km in FY2015 to 9,829 km in FY2018 and ~10,855 km in FY2019), with sizeable under-implementation projects, the target seems achievable.
  • For railways, the manifesto proposes a conversion of all viable rail tracks to broad gauge, electrification of all railway tracks, and completion of the two dedicated freight corridor projects (EDFC, and WDFC) by 2022. Further, large investment is also envisaged towards railway station modernisation across the country.
  • The aim is to increase metro-rail infrastructure to 50 cities from around 20 cities where the project has been approved so far.
  • With regard to airport infrastructure, the target is to double the number of functional airports from around 101 currently.
  • Similarly, port capacity is aimed to be doubled over the next five years and the Sagarmala project is to be fast-tracked. 

SHRIYAL SETHUMADHAVAN

In these five years, the Government needs to focus on getting private-sector participation on board. As Jagannarayan Padmanabhan, Director, CRISIL Infrastructure Advisory, says, “It is about time we get the private sector’s active participation. And obviously, the other elephant in the room is bank credit and how to get it channelled to the private sector.” The Government is likely to focus on the programmes initiated during its earlier term like Bharatmala, Sagarmala, smart cities, AMRUT and Namami Gange. The roads sector is expected to be the most crucial, followed by affordable housing. Smart cities have not quite taken off as they require funding from states and municipalities but have the potential to forge strong backward linkages with the rest of the economy. While irrigation will see limited contribution from the Centre (though will remain high priority at the state level), water-related projects like inland waterways, river cleaning and water supply are expected to be other key focus areas. Additionally, in the ICRA report, Shubham Jain, Group Head & Vice-President - Corporate Ratings, ICRA, mentions the opportunities that construction companies can look forward to in the next five years: For roads, the manifesto mentions constructing 60,000 km of National Highways over the next five years, at an average rate of 12,000 km per year. Given that the pace of highway construction has grown significantly over the past four to five years (increasing from 4,410 km in FY2015 to 9,829 km in FY2018 and ~10,855 km in FY2019), with sizeable under-implementation projects, the target seems achievable. For railways, the manifesto proposes a conversion of all viable rail tracks to broad gauge, electrification of all railway tracks, and completion of the two dedicated freight corridor projects (EDFC, and WDFC) by 2022. Further, large investment is also envisaged towards railway station modernisation across the country. The aim is to increase metro-rail infrastructure to 50 cities from around 20 cities where the project has been approved so far. With regard to airport infrastructure, the target is to double the number of functional airports from around 101 currently. Similarly, port capacity is aimed to be doubled over the next five years and the Sagarmala project is to be fast-tracked. SHRIYAL SETHUMADHAVAN

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code