gayatri projects limited - Edelweiss

GAYATRI PROJECTS LIMITEDINDUSTRY OVERVIEWOverviewConstruction industry is an integral part of a country’s infrastructure and industrial development. Construction becomes thebasic input for socio-economic development. Besides, the construction industry generates substantial employment andprovides a growth to other sectors through backward and forward linkages. With the present emphasis on creating physicalinfrastructure, massive investment is planned during the Tenth Plan. Key reforms have been initiated in several sectors withthe objective of augmenting country’s infrastructure. The construction industry has played a crucial role in this regard.The Government of India’s focus and sustained increased budgetary allocation and increased funding by international andmultilateral development finance institutions for infrastructure development in India has resulted in or is expected to result inseveral large infrastructure projects in this region. The Government has developed various alternate sources of raising fundingfor infrastructure projects, including the levy of cess on petrol and diesel, which is being used to fund the road projects suchas the Golden Quadrilateral and the North –South – East – West corridors.With a total length of approximately 3.3 million kilometers, India has the second largest road network in the world. Roadshave played a vital role in transportation and also enhancing trade. The government has taken initiatives to improve andstrengthen the network of National Highways, State Highways and roads in major districts and rural areas.The Indian road network is divided into three main categories: National Highways (interstate) covering over 58,000 kilometers State Highways covering approximately 200,000 kilometers Rural and urban roads covering nearly 3 million kilometersThe National Highways cater to about 45% of the road transport demand in the country. The government has embarkedupon an integrated National Highways Development Programme (NHDP). A major part of NHDP is the Golden Quadrilateralproject. It entails upgrading and widening of 6,000 km of highways connecting the four major metropolitan cities of Delhi,Mumbai, Chenai and Kolkatta.The government is also undertaking the North-South and East-West Corridor projects. These projects comprise about 7,000kms of highways connecting Srinagar (North) with Kanyakumari (South) and Silchar (East) with Porbandar (West).(Source : http//meaindia.nic.in – Website of Minsitry of External Affairs)The tenth plan envisages balanced development of the total road network in the country. This includes phased removal ofdeficiencies in the existing network, widening, improvement, strengthening, rehabilitation and reconstruction of weak /dilapidated bridges, adequate maintenance of roads, road safety measures and providing wayside amenities to cater to thegrowing demands for road services. Apart from this, the Plan also lays emphasis on improving the riding quality of existingNational Highways. Yet another priority objective is improvement in rural connectivity with all-weather roads and developmentof roads in the North-Eastern region. Inter-modal issues like road connectivity with airports, railways, ports, etc. is anotherissue that is highlighted.The Tenth Plan has stressed the need for improving mobility and accessibility. While the NHDP is expected to improvemobility, the Pradhan Mantri Gram Sadak Yojana (PMGSY) is aimed at providing accessibility, especially to villages. ThePMGSY which was launched in December 2000, seeks to provide road connectivity to about 1.60 lakhs rural unconnectedhabitations with a population of 500 persons or more (250 in case of hilly, desert and tribal areas) by the end of tenth planperiod. It is being executed in all States and six Union Territories. Although, initial estimates required a total requirement ofRs. 60,000 crores for this programme, however, the amount may increase to Rs. 1,32,000 crores. (http://indiabudget.nic.in/es2003-04). In 2005-06 total projects amounting to Rs. 7,66,214 lakhs for 33,932.49 kms of pavements covering 13,161habitations under this scheme were sanctioned. (http://pmgsyonline.nic.in)An outlay of Rs. 59, 490 crore (Gross Budgetary Support – Rs. 34790 crore) has been provided for the development of roadsin the Tenth Plan. The bulk of this outlay is meant for the development of National Highways and related programmes. Anexpenditure of Rs. 20505 crore is likely to be incurred in the first three years of the Plan Period.40