2013-03-16 11:20:29 - New Construction market report from Business Monitor International: "India Infrastructure Report Q2 2013"

BMI View: We are maintaining our FY12/13 growth forecast of 6.0% for India's construction sector as the factors dampening construction activity in the first three quarters of FY12/13 - relatively non-conducive monetary conditions, policy inertia and lacklustre infrastructure activity - remain pertinent in Q4 FY12/13. These factors are also expected to remain pertinent in FY13/14, particularly in the infrastructure sector. Although we continue to expect headline construction growth to improve to 7.6% in FY13/14, we have tempered our growth expectations for the infrastructure sector (from 9.4% to 7.9%) and boosted growth in the residential and non-residential building sector (from 6.1% to 7.4%).

Major developments in India's infrastructure industry:

* In February 2013, the Prime Minister's Office of India held a meeting

with the highways ministry and the National Highways Authority of India (NHAI) to review the problems in the road sector and firm up a strategy to get the country's highway development programme back on track.
* In February 2013, India's railway ministry signed a five-year memorandum of understanding (MOU) with SNCF to conduct the feasibility study for the INR630bn (US$11.5bn) Mumbai-Ahmedabad high-speed railway line.
* In February 2013, Coal India announced plans to build a US$1.4bn railway link with a view to link its three richest mining regions and free up to 300mn metric tons of coal annually in the states of Odisha, Jharkhand and Chhattisgarh. The rail link is to be funded by the company and built by Indian Railways over a five-year period.
* In February 2013, the Haryana state government signed an agreement with state-owned Delhi Metro Rail Corporation (DMRC) for the construction of an 11.2km extension of the Delhi Metro Line-5.
* In February 2013, the Indian government has banned several Indian infrastructure companies - Gammon India, Adani Ports, IVRCL, Lanco Infratech and Punj Lloyd - from taking part in three port projects in Tamil Nadu, due to security issues. These companies were denied clearance due to various security implications. In particular, Gammon India was denied clearance due to its 'Chinese connections', according to a statement from India's home ministry (cited from the Economic Times).
* In January 2013, Japanese investment company Nomura Holdings announced that it has put on hold its long-delayed plan to launch a US$500mn Indian infrastructure fund. This decision will have the concomitant effect of four senior executives leaving the company, three from India and one from Singapore.
* In November 2012, Lanco Infratech announced that it was aiming to borrow US$2bn from Chinese banks to finance its expansion plans, namely Lanco has already signed a MOU for the loan with state-owned China Development Bank (CDB). Under the agreement, CDB would directly raise US$600mn for the two coal power plant projects and help Lanco syndicate further loans from other Chinese banks to hit the US$2bn target. In return, Lanco would be committed to purchase power equipment manufactured in China for both projects.
* In November 2012, the Indian Power Ministry is still seeking to make changes to the model fuel supply agreement (FSAs) that Coal India needs to sign with power producers by the end of November 2012. The dateline for the signing of the FSAs has since been deferred until March 2013.


Full Report Details at
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Partial Table of Contents:

BMI Industry View
SWOT
Industry Forecast
- Construction And Infrastructure Forecast Scenario
- Table: India Construction And Infrastructure Industry Forecasts, 2011/12 -2016/17
- Table: India Construction And Infrastructure Industry Forecasts, 2017/18 -2022/23
- FY2013/14: Structural Weakness
- Transport Infrastructure - Outlook And Overview
- Table: India Transport Infrastructure Industry Forecasts, 2011/12 - 2016/17
- Table: India Transport Infrastructure Long Term Forecasts, 2017/18-2022/23
- Table: Competitiveness Of India's Infrastructure
- Table: India - High-Speed Railway PPP Projects Being Planned
- Table: Phases Of Development For The Navi Mumbai International Airport
- Table: Major Projects - Transport
Energy And Utilities Infrastructure - Outlook And Overview
- Table: India Energy and Utilities Infrastructure Industry Forecasts, 2011/12 - 2016/17
- Table: India Energy and Utilities Infrastructure Industry Forecasts, 2017/18 - 2022/23
- Table: Nuclear Power Reactors
- Table: Major Projects - Energy and Utilities
Residential/Non-Residential Construction - Outlook And Overview
- Table: India Residential and Non-Residential Building Industry Forecasts, 2011/12-2016/17
- Table: Table: India Residential and Non-residential Building Long Term Forecasts, 2017/18-2022/23
- Table: Major Projects - Residential/Non-Residential Construction and Social Infrastructure
Industry Risk Reward Ratings
- India Industry Risk Reward Ratings
- Asia Infrastructure Risk Reward Ratings
- Giants Of Asia: Rewards Sizeable, Risks Sizeable
- South East Asia: Large Pipelines, Loose Monetary Policy
- Nearly Developed Markets: Economic Slowdown Takes A Toll
- Table: Asia Infrastructure Business Environment Ratings
Market Overview
- Competitive Landscape
- Table: EQS Data
Company Profile
- Gammon India
- Larsen & Toubro
- Reliance Infrastructure
Global Industry Overview
- Europe, Middle East, Africa
- Dubai Confidence Up, Mega-Spending Status Quo In The Region
- Low Yields Push Capital Further Into Infrastructure
- Turkey Shines As South Africa and Poland Struggle To Recover
- Natural Resource Boom Drives SSA Infrastructure Investment
- Latin America
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