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    Reliance Infrastructure

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    PrasannaKumar93
    The document discusses India's infrastructure industry and its importance to the country's economic growth. It notes that the Indian government has increasingly focused on infrastructure development through initiatives in its Five Year Plans. Experts estimate that infrastructure spending will need to increase to over 10% of GDP to sustain an economic growth rate of 8-9%. Key factors that can support growth include awarding more projects, efficient project implementation, and assessing public-private partnership viability. The document also covers competition principles in infrastructure sectors and various government initiatives to promote development in areas such as roads, energy, ports, and foreign collaboration.

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    Reliance Infrastructure

    Uploaded by

    PrasannaKumar93
    76 views15 pages
    The document discusses India's infrastructure industry and its importance to the country's economic growth. It notes that the Indian government has increasingly focused on infrastructure development through initiatives in its Five Year Plans. Experts estimate that infrastructure spending will need to increase to over 10% of GDP to sustain an economic growth rate of 8-9%. Key factors that can support growth include awarding more projects, efficient project implementation, and assessing public-private partnership viability. The document also covers competition principles in infrastructure sectors and various government initiatives to promote development in areas such as roads, energy, ports, and foreign collaboration.

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    The document discusses India's infrastructure industry and its importance to the country's economic growth. It notes that the Indian government has increasingly focused on infrastructure development through initiatives in its Five Year Plans. Experts estimate that infrastructure spending will need to increase to over 10% of GDP to sustain an economic growth rate of 8-9%. Key factors that can support growth include awarding more projects, efficient project implementation, and assessing public-private partnership viability. The document also covers competition principles in infrastructure sectors and various government initiatives to promote development in areas such as roads, energy, ports, and foreign collaboration.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    76 views15 pages

    Reliance Infrastructure

    Uploaded by

    PrasannaKumar93
    The document discusses India's infrastructure industry and its importance to the country's economic growth. It notes that the Indian government has increasingly focused on infrastructure development through initiatives in its Five Year Plans. Experts estimate that infrastructure spending will need to increase to over 10% of GDP to sustain an economic growth rate of 8-9%. Key factors that can support growth include awarding more projects, efficient project implementation, and assessing public-private partnership viability. The document also covers competition principles in infrastructure sectors and various government initiatives to promote development in areas such as roads, energy, ports, and foreign collaboration.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    Infrastructure Industry

    The development of a countrys infrastructure is vital to the growth of its


    sectors and the overall economy. Infrastructure primarily comprises of :
    Electricity
    Roads
    Telecommunications,
    Railways,
    Irrigation,
    Water supply and sanitation,
    Ports and airports,
    Storing facilities
    Oil and gas pipelines

    Government Policy
    The Indian government began to shift its focus to infrastructure
    development, as was evident from the 10th and 11th Five Year plans.
    According to experts, spending on the sector needs to increase to
    more than 10 per cent of GDP by 2017 to achieve and sustain 8 to 9
    per cent economic growth.

    GDP Growth Rate


    The Gross Domestic Product (GDP) in India expanded 4.60 percent in
    the first quarter of 2014 over the same quarter of the previous year.
    GDP Annual Growth Rate in India averaged 5.82 Percent

    GDP Growth Rate

    GDP & Infrastructure

    Key Factors
    1. Awarding a higher number of projects
    2. Efficient implementation of tendered projects
    3. Assessing the viability of PPP projects

    Competition and Infrastructure


    Competition principles apply across all sectors
    However, certain features distinguish infrastructure sectors:
    1. Natural monopoly
    2. Network effects
    3. Switching costs
    4. Heavy capital costs

    Competition and Infrastructure


    Some infrastructure sectors also have individual characteristics that
    affect competition, e.g in electricity:
    1. Cannot be stored
    2. Relatively inelastic demand
    3. Demand fluctuations - within day and inter-seasonal

    Competition and Infrastructure


    Measures that promote competition:
    Vertical separation (unbundling) of natural monopoly from
    contestable parts
    Horizontal separation to encourage inter se competition and
    yardstick competition
    Open access (essential facility doctrine)
    Remove entry barriers; facilitate entry
    Mitigate switching costs (number portability, bank account
    portability)
    10

    Government Initiatives
    Roads
    1. 7,200 km of State Roads as new national highways
    2. Other road development projects in the pipeline include existing
    national highways network totalling 21,271 km, which are not
    covered under any programmes/schemes as of now.
    Energy
    1. A web-based Electrical Energy Management System, RAILSAVER, was
    inaugurated by Mr Kul Bhushan, Member Electrical, Railway Board, in
    April 2014. The portal will be used for tackling the challenges of global
    warming and sustainability of the environment.

    Government Initiatives
    Port development project
    1. 100 per cent FDI, under the automatic route for port development
    projects.
    2. A 10-year tax holiday to enterprises that are engaged in the
    business of developing, maintaining and operating ports, inland
    waterways and inland ports.
    Foreign collaboration
    1. India and Sudan have good potential for enhancing cooperation in
    promoting renewable energy. India also offered assistance for
    developing renewable energy resources in Sudan.

    Budget 2014 : Key Expectation


    Single window clearance system
    Infrastructure investment trust ('IIT')
    Tax holiday on brownfield infrastructure projects
    Cost incurred towards construction development
    Minimum Alternate Tax

    Depreciation of rupee
    Hit infrastructure sector projects dependent on international market
    borrowings and imported equipment in a big way
    20 per cent slide in the rupee since August would raise the cost of
    infrastructure projects substantially
    That companies importing equipment through loans taken from
    international agencies would not get affected much, as the risks had
    already been hedged.
    Impact on infrastructure companies would be neutral on their
    operating performance, as projects would largely be in India, resulting
    in limited benefit from rupee depreciation

    Reliance Infrastructure
    Indias largest Infrastructure company with turnover (Rs.15690
    crore*) market capitalization of over Rss.24450 crore
    Company having presence in across the value chain of power business
    Generation, Transmission, Distribution, EPC and Trading

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