India plans US$ 308 billion infrastructure investment

Infrastructure investments totalling INR 14 trillion (US$ 308 billion) are in the pipeline in India over the next five years, while as much as US$ 1 trillion could be invested in infrastructure in the mid- to long-term, attendees at the Indian Earthmoving & Construction Industry Association (IECIA) conference heard.

The 10 February conference, which took place during the bC India exhibition in Mumbai, was told that by 2015, up to 25714 km of roads are expected to be constructed in India at an estimated cost of INR 2.7 trillion (US$ 59 billion), while railways are expected to benefit from INR 1.4 trillion (US$ 30 billion) in investment over the next five years alone.

In the ports sector, investments to the tune of INR 838 billion (US$ 18 billion) are planned, while airport infrastructure companies are expected to invest INR 245 billion (US$ 5.4 billion) over the next five years and the power sector is anticipated to receive as much as INR 9.3 trillion (US$ 205 billion) for new projects.

Indeed, Ranaveer Sinha, chairman of the IECIA and managing director of Telco Construction Equipment told the conference that infrastructure projects totalling US$ 1 trillion in value are on the cards for India in the mid- to long-term.

"This opportunity is a chance for India to catch up with the rest of the developed economic world. It is very important that the investment in infrastructure moves forward at a rapid rate," Mr Sinha said.

Major initiatives include the planned Mumbai metro network, under which 15 rail corridors are planned comprising 305 km of new track by 2031.

Capacity increases at several of India's major ports including Paradip, Viskhapatnam and Cochin are also planned over the next five years, while 82 gW of extra power is also expected to be added to India's grid by 2016.

This growth is in turn boosting demand for construction equipment, where demand is highest for road building machines.

As such, equipment including asphalt pavers, motor graders, excavators, vibratory compactors, batching plants and transit mixers are likely to be most in demand in the near-term, followed by excavators and loaders.