As per leading market research firm ICRA, railways, roads and highways sector are going to get the largest chunk of investment over the next five years as the government is expected to spend Rs 30 trillion in the transport sector in India.
Taking exerts from the BJP manifesto, ICRA said that railways is expected to receive the lions share with financial outlay of Rs 10-12 trillion over the next five years while up to Rs 9 trillion is expected to be pumped into the roads and highways sector.
Shubham Jain, Vice-President and Group Head, Corporate Ratings, ICRA, said in a statement that amongst the key segments, transport infrastructure is expected to see a major jump with an estimated Rs. 25-30 trillion of capital outlay over the next five years. Such an investment will provide tremendous long-term benefits for the Indian economy. The construction companies are likely to be the major beneficiaries and will witness strong order inflows, estimated between Rs. 15-18 trillion on the basis of these infrastructure capex plans.
The BJP in its manifesto proposed to construct 12,000 kms of national highways every year till 2024. ICRA said that the target was achievable given the length of highways conducted in 2018-’19 touched 10,000 kms.
For the railways, the manifesto has proposed a conversion of all viable rail tracks to broad gauge, electrification of all railway tracks, and completion of the two dedicated freight corridor projects by 2022, ICRA said.
The new Government is likely to maintain the continuity on the major programmes like Bharatmala Pariyojana (Highways), Sagarmala (Ports), railway station redevelopment programme, inland waterways development, Namami Gange, Swachh Bharat Mission, UDAN (Airports), AMRUT and Smart Cities (Urban Infra), launched during its last tenure.