Infrastructure spending in the country is required to be enhanced to Rs 50 lakh crore over the next five years, with power, transport and urban sectors expected to corner over three-fourths of the investments, a Crisil report has said. Infrastructure investment is estimated to have risen to Rs 37 lakh crore, or 5.6% of GDP, between fiscals 2013 and 2017, marking 56% growth over the Rs 24 lakh crore spent in the preceding five years. “Crisil believes spending on infrastructure needs to increase to Rs 50 lakh crore over the next five fiscals through 2022. This projection factors an annual GDP growth of 7%, infrastructure investments equal to 5.5% of GDP, and a pick-up in private sector investments after fiscal 2019,” the Crisil Infrastructure Yearbook 2017 said. It pointed out that in fiscals 2016 and 2017, higher Union government spending partially offset a steep decline in private investments and deterioration in state government finances.
AP signs MoUs with UAE firms for $7.5 bn investment
The Andhra Pradesh government last week signed two major deals with Dubai-based firms, which could net a total investment of $7.5 bn for the state. The AP Economic Development Board (EDB) signed an MoU with Aviation City LLP for developing an aero city hub in Andhra Pradesh with an investment of $5.5 bn. The board signed another MoU with the Bin Zayed Group which promised to invest $2 bn in various infrastructure projects in the state. The deals were struck during the visit of Chief Minister N Chandrababu Naidu to the UAE, the EDB said.
L&T’s construction arm bags Rs 3,551-cr orders
Larsen & Toubro’s (L&T’s) construction arm had won orders worth Rs 3,551 crore across business segments, the company said last week. In a filing to BSE, L&T said its transportation infrastructure and water effluent treatment segments had jointly bagged orders worth Rs 1,123 crore in the domestic market. Apart from the joint order, the transportation infrastructure and water effluent treatment businesses had received orders worth Rs 777 crore and Rs 572 crore, respectively, while the building and factories divisions had won orders worth Rs 866 crore for design and construction of 22 towers.