The Hindu Business Line : Construction, infrastructure expenditures set to soar

CONSTRUCTION activity in the country is expected to triple from the current level of $35 billion to $117 billion over the next 10 years. However, even after a decade, China's construction industry will be 10 times that of its Indian counterpart, according to Mr. E. Sudhir Reddy, Vice-Chairman and Managing Director of IVRCL Infrastructure Projects Ltd.

In support of his contention, Mr Reddy pointed out that the Central Government working group on housing had estimated an investment of $11.3 billion housing while an additional $37.6 billion of investment is needed for providing safe water and sanitation to rapidly growing urban population. Besides, an investment of $59.1 billion is needed for the transport infrastructure in cities with population of 1 lakh and more.

Addressing newspersons here, he said that investment in the power sector in the next 10 years was estimated to be in the range of $43 billion. If the project pertaining to inter-linking of rivers is undertaken, an additional investment of $121.7 billion will be needed.

With a view to improving the human development indices, Mr Reddy said successive Governments have been raising the share of outlay on urban infrastructure in the total plan outlay. Consequently, major construction companies in the country have registered an impressive growth in the past few years.

He said that IVRCL had been rated as one of the fastest growing construction company in the country with aggregate growth rate of 42 per cent in the last five years. Started as a building contractor, the company had broadbased its business portfolio and was now executing projects pertaining to water, roads, townships and power worth around Rs 1,700 crore. The company had posted a turnover of Rs 750 crore last fiscal and had targeted to achieve a turnover of Rs 1,000 crore in the current fiscal.

Stating that 60 per cent of the company's business consisted of water related projects, he said that IVRCL was planning to take water projects in foreign countries.

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