Infrastructure is considered to be one of the basic building blocks in the economy. This sector of the economy was previously marked by chronic underinvestment and widespread inefficiency. However, public dissatisfaction with the slow growth rate in recent years and the dawning realization that the sector is of paramount importance to the growth of the economy is evidenced by the resolve to rectify the situation with a measure of immediacy.Recent developments such as the de-licensing of the material handling equipment industry, increased investment in all spheres including allowing 100% FDI under the automatic route, 100% FDI in railway infrastructure subject to certain regulations and the relaxing of governing regulations.
The Planning Commission estimates approximately 10% of India’s GDP will be spent on Infrastructure during the 12th five year plan and 47% of the total funding is sought to be achieved through private entities. The creation of a number of Special Economic Zones aimed at increasing exports and the passing of the revised Land Acquisition Bill has given also new impetus to the growth and development of the Industry, and is further bolstered by investments in any related sectors, including, inter alia:
For example, the current Union minister for coal, power and renewable energy, Mr. PiyushGoyal expects investments in the power sector to rise to about 250 billion USD over the next 5 years, giving rise to a host of opportunities in the associated fields of its generation, distribution, transmission etc.
Recent Developments in this field include the government’s plans to breathe new life into the ramshackle railway network, the establishing of a number of ports and the addition of new regional and other airlines, investments in real estate by private equity funds etc.
While there are undoubtedly major hurdles to be overcome, we believe that our persistent and disciplined approach to tackling problems and unwavering determination to provide our clients with the best possible advice makes us the ideal Law Firm to help guide our clients steadfastly in the direction they wish to go, unhindered by the overabundance of differing/ contradictory views and opinions offered by various parties, each having conflicting interests and their own agenda.