Page 16 - TrafficInfratech Magazine Feb - Mar 2020

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through the ‘Housing for All Mission’ reduce portfolio risks through
by building 100 new Smart Cities, diversification, and to access higher
To further rejuvenating 500 existing cities and risk-adjusted returns for institutional
give impetus providing affordable houses to all by investors. These investors also
2022.
expect infrastructure to provide
to private India is targeting installation additional benefits, such as inflation-
investments in of 227GW of renewable energy linked returns and long-term stable
cash flows. Institutional Investors
capacity, which will require a four-
the county, the fold growth in the sector from the have increasingly participated in the
Government existing installed capacity of 60GW. financing, building and operating of
infrastructure through public-private
By 2022, India will ensure that every
has established house in India has electricity which partnerships. The aggregate value
a new asset will be achieved through additional of global infrastructure investments
renewable energy sources installed
reached its highest level in 2016,
class in the across India. with $413 billion invested. Investor
country – The mammoth infrastructure appetite for infrastructure has

recycling of needs of the country have an grown steadily since the global
financial crisis.
estimated outlay of $4 trillion by
infrastructure 2040. The infrastructure pipeline The progressive PPP framework
assets launched by the Government of in the country has attracted
India recently has laid out the
various institutional investors to
integrated infrastructure plan for include India in their infrastructure
the next decade with an anticipated allocations. Additionally, India now
implemented to generate funding requirement of $1trillion. offers a very mature secondary
for greenfield road construction. Institutional Investors including market for exits which adds to the
India has been clocking a Sovereign Wealth Funds, Pension attraction of the market. Canadian
consistent double-digit growth Funds and Private Equity are pension funds are a case in study.
in the domestic aviation market becoming very active players in Canada represents nine percent
setting the country to become the the Indian Infrastructure growth of the total universe in respect to
third largest aviation market in the story. Investing in infrastructure assets under management and is
world by 2027. To meet the huge assets, characterized by long- home to some of the largest and
demand, 100 new airports will be term contractual arrangements most experienced infrastructure
built over the next 15 years and 400 and regulation, is a means to investors. Five major Canadian
existing airports will be upgraded.
The Railways sector in India
has also recently opened up to
100% FDI in railway infrastructure
segment. To augment freight
traffic, six dedicated freight
corridors are being built to minimise
freight movement time. Seven High
Speed Railways are also being built
across the country with the first one
already under implementation. Four
Hundred Railway Stations are also
being redeveloped as the central
points of cities.
Significant physical infrastructure
is being created to accommodate
the growing population of India

16 February-March 2020 / TrafficInfraTech www.trafficinfratech-com-500653.hostingersite.com