Released July 05, 2013 | JOHANNESBURG
en
Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--In a drive to stimulate steel demand, the Indian government is planning to award $19.5 billion in infrastructure projects under the public-private-project (PPP) model during the current financial year.
A steering committee is being set up to monitor mega projects, such as the $5.1 billion Mumbai elevated rail corridor, and the $7.8 billion in power sector projects.
In the last financial year, only 14% of the 9,500 kilometers of road projects targeted were awarded. The focus will now be on the consolidation and implementation of targets, rather than on making over-ambitious commitments that are not achieved. A composite solution will be provided by making sure all obligations are met before new projects are launched, which will include approvals, clearances and land acquisitions.
Steel consumption in India grew only 3.3% in 2012-13 to 73.3 million tons, the lowest rate in three years. Demand was flattened by a slow economy and high interest rates. The government is looking for a 6% growth in consumption in 2013-14, with steel consumption growing by 1.2 times that of the GDP.
For related information, see June 14, 2013, article - India Leads Asian Project Loans as Tata Steel Secures Record $4.4 Billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
A steering committee is being set up to monitor mega projects, such as the $5.1 billion Mumbai elevated rail corridor, and the $7.8 billion in power sector projects.
In the last financial year, only 14% of the 9,500 kilometers of road projects targeted were awarded. The focus will now be on the consolidation and implementation of targets, rather than on making over-ambitious commitments that are not achieved. A composite solution will be provided by making sure all obligations are met before new projects are launched, which will include approvals, clearances and land acquisitions.
Steel consumption in India grew only 3.3% in 2012-13 to 73.3 million tons, the lowest rate in three years. Demand was flattened by a slow economy and high interest rates. The government is looking for a 6% growth in consumption in 2013-14, with steel consumption growing by 1.2 times that of the GDP.
For related information, see June 14, 2013, article - India Leads Asian Project Loans as Tata Steel Secures Record $4.4 Billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
