Around 50 per cent of the total investments in the infrastructure sector during the 12th Plan is expected to come from the private sector, says a report.
According to an Ernst & Young report, private sector participation in Indian infrastructure projects was around 25 per cent in the 10th Five-Year Plan (2002–2007), which increased to 36 per cent in the 11th Five-Year Plan (2007–2012) and is expected to increase further to around 50 per cent in the 12th Five-Year Plan (2012–2017).
“This translates into an increase from Rs 2.3 lakh crore in 10th Five-Year Plan to Rs 20.5 lakh crore in 12th Five-Year Plan. With such rapidly growing opportunities, there has been a substantial rise in the number of new entrants in the sector,” the report adds.
The report titled ‘Engineering, Procurement and Construction (EPC): Driving growth efficiently’ also says the EPC sector is expected to generate opportunities worth Rs 17.1 lakh crore during the 12th Five-Year Plan.
The report said, “The EPC sector is set for a big leap in India. We are expecting to see projects in roads and highways go on the fast track.”
It added, “While the Mass Rapid Transition system is a step forward for the railways, unbundling of reforms are eagerly awaited.”
The government is also working on the Model Concession Agreement (MCA) to award road projects on EPC.
The report adds: “The process of privatisation has begun for ports, the sector shows positive prospects, as do the airports segment where Tier II and III cities are the focus of attention. The power sector is expected to see private players get a boost, while oil and gas see doubled investments in the 12th Plan. As our cities swell, urban infrastructure promises to be the story of the next decade.”
