Post on 19-Jan-2015
description
transcript
PHYSICAL INFRASTRUCTURE IN INDIA
Presented By:
GROUP - 26
POWER PETROLEUM
RAILWAYS ROADS AVIATIO
N PORTS TELECOM
Stimulus Measures to improve infrastructure to combat economic downturnAllocation for many infrastructure projects in Union Budget 2009-10
PHYSICAL INFRASTRUCTURE IN INDIACurrent Highlights
Vastly under capacity
•It takes Longer to take freight from Delhi to Mumbai than Mumbai to foreign ports.
•Many Large programs, but not one National Plan
•And on and on!
•Up to 2015, goods traffic is expected to rise at 15% /year
•Do we have the roads?
Roads •New Network of Roads and Flyovers connecting with Domestic and International Terminals
Railways •Delhi Metro Railway System connecting the NCR region
Airport •Domestic and International Airport Beautification and Expansion
CWG 2010- Boost to Delhi Infrastructure
Size
Structure
POW
ER
•Majority of Generation, Transmission and Distribution capacities are with either public sector companies or with State Electricity Boards (SEBs) • Private sector participation is increasing especially in Generation and Distribution- Distribution licences for several cities are already with the private sector- Many large generation projects have been planned in the private sector
• Generation capacity of 164 GW (5th in the world); CAGR of 4.6% over the last four years• Low per capita consumption at 606 units; less than half of China•T & D network of 5.7 million circuit km – the 3rd largest in the world
Current Scenario
57%25%
10%3%5%
% of power generation
ThermalHydelGas BasedNuclearOther Renewable
Sector MW %
State 80844 52.5
Central 51867 34
Private 32124 13.5
Total 164835
POW
ER
•Large demand-supply gap: All India average energy shortfall of 7% and peak demand shortfall of 12%
• The implementation of key reforms is likely to foster growth in all segments:Unbundled SEBs; Open Access networks; privatised distribution circles; Tariff reforms
•Opportunities in Generation for:Coal based plants(imported coal); Natural Gas/CNG based turbines; 150 GW Hydel power potential; MRO of old plants; Private/ foreign player entry in NPPs •Opportunities in Transmission network ventures - additional 60,000 circuit km of transmission network expected by 2012 •Opportunities in Distribution through bidding for the privatisation of distribution in thirteen states that have unbundled/corporatised their State Electricity Boards – expected to take place over the next 2-3 years
Total investment opportunity of about US$ 200 billion over a seven year horizon
Future Potential
Positive Outlook
POW
ER
• 100% FDI permitted in Generation, Transmission & Distribution - the Government is keen to draw private investment into the sector •Policy framework in place: Electricity Act 2003 and National Electricity Policy 2005
•Incentives: Income tax holiday for a block of 10 years in the first 15 years of operation; waiver of capital goods import duties on mega power projects (above 1,000 MW generation capacity)
•Independent Regulators: Central Electricity Regulatory Commission for Central PSUs and inter-State issues. Each State has its own Electricity Regulatory Commission.
Policy Initiatives
Major Players currently
PETR
OLE
UM
UpstreamExploration and Production
• ONGC, RIL, Cairn India, OIL
DownstreamRefining and Marketing
• IOCL, BPCL, HPCL, RIL, Essar
Strategic Importance
Foreign Policy
75% Imported
Petroleum Industry Petroleum Sector
Steps to Boost Crude Oil ProductionPE
TRO
LEU
M
NELP•NELP-VIII:36 blocks awarded in 2009•NELP-IX: Bids invited for 34 Blocks for 2011•KG Basin: 80 MMSCMD•Barmer Oil field: 6.5 Bn barrels/day
Overseas Acquisition
•National Oil companies encouraged to acquire oil fields abroad•OVL, IOC-OIL, BPCL-Videocon•OVL 7 blocks; IOC-OIL 3 blocks
Refining CapacityPE
TRO
LEU
M
120 MMTPA
Domestically
Consumed
60 MMTPAExported
180 MMTPARefining Capacity
Year 2010 Year 20120
50
100
150
200
250
300
In MMTPA
PETR
OLE
UM
Grass r
oot refi
neries
by I
OCl,
BPCL a
nd
HPCL at Para
di
p,
Bi
na a
nd
Bhati
nda
Expansion projects at Existing Refineries
Expansion by Reliance and Essar
As
hok Leyla
nd,
Ni
ppon
De
nr
o a
nd S
or
os F
oud e
nteri
ng
Refi
nery
Busi
ness
Capacity Expansion
ROAD
S AN
D H
IGH
WAY
S
The Golden Quadrilateral (GQ-5846 kms of 4 lane highways)
•Highways/Expressways constitute about 66,590 kms (2% of all roads) and carry 40% of the road traffic
•Annual growth projected at 12-15% for passenger traffic, and 15-18% for cargo traffic
•Opportunity or Threat?
Investment in road sector during the Eleventh Plan is projected at $ 78.50 billion
India has an extensive road network of 3.3 million kms - the second largest in the world
Potential
Road development is recognised as essential to sustain India's economic growth
The Government is planning to increase spends on road development substantially with funding already
in place based on a cess on fuel
A Rs.41,200 crores (US $ 5 billion) project plans to lay 6 lane roads over 6,500 kms of National
Highways on the Design Build Finance and Operate (DBFO) basis - in Golden Quadrilateral and other
high traffic stretches.
ROAD
S AN
D H
IGH
WAY
S
Size and Structure
Launch of New Trains
•Izzat Scheme–Uniformly Priced Monthly Season Tickets(MSTs)•Matrabhumi Train Services – Targeted at only Ladies•Yuva Trains – Targeted at unemployed youth
Up gradation of Passenger Amenities
RAIL
WAY
S
•Computerization of Passenger and Freight Services•Development of Adarsh Stations - Basic Facilites like drinking water, toilets•Multi-functional Complexes –shopping, food stalls, restaurants
•World’s Largest Number Of Employees•Third Largest Rail Network in the World•Owned and Controlled by Indian Government – Headed by Mamata Banerjee
Current Scenario
Usage of Bio-Fuel
Establishment of Rail Land Development Authority
Improvement of Financial Health
RAIL
WAY
S
•Largest Consumer of High-Speed Diesel (HSD) currently•Potential for B10 blend – 10% bio-diesel in HSD oil •Plantation of Jatropha curcas on vacant Railway Land
• Utilization of vacant Railway Land and air space• Setting up of Infrastructural Projects - Generate Employment
•New milestone in incremental freight loading this year by carrying 5.70mTonnes•Hiving off Non – Core Activities
Future Potential
Dedicated Freight Corridors
•Investment – Rs. 22,000 crores•Western and Eastern High Density Routes
Privatization of Container Trains
•Monopoly of CONCOR –public sector entity till now•14 applicants for container train operation
Tariff Rationalization
RAIL
WAY
S
• Methodology for indexing the fare structure to line haul costs•Introduction of commercial accounting and information technology systems
National Rail Vikas Yojana
•Strengthening of the golden Quadrilateral to run more long-distance mail•Strengthening of rail connectivity to ports •Development of multi-modal corridors to hinterland
Policy Initiatives
AVIA
TIO
N
In 2004-05, Indian airports handled 60 million passengers and 1.3 million tonnes of cargo
•Passenger traffic grew at over 22% in 2004-05 over 2003-04; Cargo grew at 21.6% over the previous year
100 million passengers p.a. by
2010Cargo to cross 3.3 million tonnes by
2010
•Total 125 airports in India.• 11 International airports.
PORT
S•12 major ports•200 non-major ports
•95% of India’s exports & imports moved by sea
•Traffic estimated to reach 877 million tonnes by 2011-12
18 Billion investment
100% FDI Automatic Route
PPP on BOT basis
100% IT exemption for 10 years
5% of World Exports(2020)
Present StatisticsTE
LECO
M
Total Subscribers (Wireless+Wireline) 671.69 million
Urban Subscribers 452.59 million (67.4%)
Rural Subscribers 219.09 million (32.6%)
Teledensity 56.83
Urban Teledensity 128.20
Rural Teledensity 26.43
Jan/04 Jan/05 Jan/06 Jan/07 Jan/08 Jan/090
50
100
150
200
250
300
350
400
450
33.6952.22
98.77
165.11
261.07
391.76
SUBS
CRIB
ERS
(in m
illio
ns)
Source: trai.gov.in 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-090
5
10
15
20
25
30
35
40
45
50
Reve
nue
(US
billi
on $
)
New Growth Horizons for Telecom service providers
TELE
COM
TELECOM
3G Telecom Services
Mobile Number Portabilit
y
Value added
Services
WiMaxManufacturing
Enterprise Telecom Services
Managed Service
Rural Telephon
y
TELE
COM
MAJOR POLICY INITIATIVES• 100% foreign direct investment
(FDI)• FDI ceiling in telecom services
raised to 74% • Introduction of a unified access
licensing regime for telecom services on a pan-India basis
• Mobile Number Portability.• Bharat Nirman programme. • Bidding for 3G spectrum by
foreign companies.
TARGET SET BY THE GOVERNMENT• 800 million connections by the
year 2012.• 200 million rural subscribers by
2012.• 20 million broadband connections
by 2010.• Broadband coverage for all
secondary & higher secondary schools and public health care centres by the end of year 2010.
• Achieving exports of 10 billion during 11th Five year plan.
• Quadrupling production in 2010.
Sources of funds for infrastructure projects are very much similar to those for a corporate
Sources of Fund
Instruments
Debt Financing
Equity Financing
Institutions
Govt. Institution
s
Banks
Foreign
Investors
Promoters
Governme
nt
Private
Sector
PPP
FIN
ANCI
NG
OF
INFR
ASTR
UCT
URE
•11th Five Year Plan (2007-2012) calls for more than doubling
the financial outlay for infrastructure
•Share of private investment in total to rise from 17% to 30% by 2012
•Key foreign players include 3i, Blackstone, Citigroup, Macquarie
•International funding also comes from ADB, World Bank, etc
•Mismatch of funding period – major hitch
Facts about Infrastructure Financing
Many Infrastructure sectors have consistently featured in the top 10 sectors in terms of FDI fundings
Rank Sector 2010-11
(April- August) Cumulative Inflows
(April ’00 - August ‘10)% age of Total Inflows
(In terms of US$)
1 SERVICES SECTOR 1,260 24,862 21%
2COMPUTER SOFTWARE & HARDWARE
458 10,330 9%
3 TELECOMMUNICATIONS 1,054 9,985 8%
4 HOUSING & REAL ESTATE 539 8,895 7%
5 CONSTRUCTION ACTIVITIES 294 8,347 7%
6 POWER 677 5,305 4%
7 AUTOMOBILE INDUSTRY 114 4,710 4%
8 METALLURGICAL INDUSTRIES 613 3,743 3%
9 PETROLEUM & NATURAL GAS 218 2,883 2%
10 CHEMICALS 146 2,642 2%
Source: Department of Industrial Policy & Promotion Ministry of Commerce and Industry
FDI I
NVE
STM
ENT
IN IN
FRAS
TRU
CTU
RE
Key sources of funds in India are initiatives like PPP and institutes like IFCL
FIN
ANCI
NG
OF
INFR
ASTR
UCT
URE
180 projects undertaken till date Projects undertaken mainly in Roads & transport sector Introduces private sector expertise and cost reducing technology Fast approval through PPPAC
2006 2007 2008 2009 2010 (Till June)
02468
10121416
1.4
3.9
14.4
11.1
7.5
Projects under PPP (in $ billions)
Source: PPP India Website
Public Private Partnerships
Addresses need for long term debt Funds up to 20% of capital costs of project Raises funds, on Govt. guarantees, from domestic & external markets Direct approval for PPP projects
India Infrastructure Finance Company
1.4
2.2
0.1
Private (Non PPP) PPP Public Sector
(in $ billions)Composition of IIFC Funding
Source: PPP India Website
Group - 26
Anubhav AgarwalPradeep TewaniPreethi NatarajanOsama AbdullahSidharth SrninivasanSurbhi Jain