Infra sector needs urgent capacity addition

“We believe in continuous innovation, and innovation is the key to our success and keeping our competitors at bay,” says Vijay Kalantri, Chairman and Managing Director, Dighi Port Ltd.; President, All India Association of Industries; and Vice Chairman, World Trade Centre, Mumbai
 Dighi Port Ltd. is setting up the first private port in the public-private space near Mumbai as well as establishing a special economic zone around the port with modern infrastructure. The port forms an integral part of the Delhi-Mumbai Industrial Corridor (DMIC). In an interview with ACE Update, Vijay Kalantri shares how Dighi port will become a key catalyst in the development of the region.
Indian construction and infrastructure industryIndian businesses feel there is a need for an urgent capacity addition in infrastructure. This can set in motion a virtuous cycle, which will stimulate domestic demand and increase productive capacity of the economy, thereby helping the economy creep back to a high-growth trajectory in a few year’s time. The government must work towards providing an environment conducive for growth and investments, with major reforms in infrastructure and energy sector. This is important as India’s economic environment will act as a catalyst in reviving global economy.
The new government’s 10-year plan to improve infrastructure includes building smaller airports in towns, a high-sped train network, revamping trains and modernising ports. The government is planning a multi-billion dollar infrastructure fund to push investments. Four ministries — Civil Aviation, Railways, Road and Shipping — have been asked to work together. This will improve coordination and avoid delays in decision making. The government is all set to roll out Rs 2 lakh crore worth of infrastructure projects this year. Undoubtedly, the focus should be on expediting stalled infrastructure projects and resolve iron and coal mining issues. These measures must combine with reforms in environment issues, land acquisition, taxation, labour and speedy clearances of project approvals.
In the construction sector, the central government has announced 100 per cent FDI as part of its initiative for “Make in India”. The government has eased foreign investment rules to make it easier for investors to enter the markets. The new rules proposed include reducing the built-up area requirement for FDI in construction projects to 20,000 sq. metres from 50,000 sq. metres. The minimum capital requirement has also been reduced to $5 million from $10 million. The new rules will make it easier for the government to attract investments to build smart cities and affordable homes in the country. It is also likely to improve the dismal infrastructure in Asia’s third largest economy and provide impetus to key manufacturing sectors such as cement and steel.
Further, the Environment Impact Assessment (EIA) Notification of 2006 has been toned down to exempt many categories of buildings and construction projects from seeking environmental clearances.
Adding valueDighi Port Ltd. is setting up the first private port in the public-private space near Mumbai as well as establishing a special economic zone around the port with modern infrastructure. The port is equipped with state-of-the-art facilities and forms an integral part of the Delhi-Mumbai Industrial Corridor (DMIC). The company’s growth prospects hinges on sound infrastructure policy supported by pragmatic investment policy. The speedy infrastructure development in the country in terms of roads, railways, ports, power and telecommunications will provide the necessary impetus to Dighi Port and enable the company to improve the overall economy of the region. Dighi will thus become a key catalyst in the growth and development of the region.
X-FactorsThere is an overall improvement in the investment outlook of the economy, and the government has initiated several reforms to set the economy on the growth path. Overseas investor sentiment is looking up, and India is bolstering its international relations with foreign partners. Inflation has softened bringing some cheer to the economy and the stock markets remain bullish. Evidently, the prospect of a stable government is the key to the growing optimism of the Indian businesses and overseas investors.
Dighi Port in the current marketThe company’s medium term prospects remain sound. Dighi Port is moving ahead with its investment and expansion plans and optimistic of achieving the targets. The traffic movement at the port is improving, and the outlook is encouraging.
Standing outDighi Port is on a sound footing. The port believes in continuous innovation, and innovation is the key to its success and keeping its competitors at bay. Dighi Port chooses its core values and do them better than anyone else. It understands the value and essence of making the right decisions with the right degree of risk. The ports keep upgrading periodically its workforce skills.
Road & rail connectivity – current status (Dighi port)
Road and Rail connectivity project included under the CCI chaired by PMMonthly monitoring by the Project Monitoring Group formed at State level under CCIDPR for the Road project cleared by the State Government4 Lane Road project cleared by PMGwith development & tolling right to Dighi Port LtdRail Project under new policy cleared by RVNL–DPR approved and cleared by RVNLRVNL to hold 26% in the Project SPVRailway development recommended and included as a special project under Indian RailwaysAll approvals for bye passes to be developed on both the banks received

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