Research and Markets: India Infrastructure Report Q2 2011 - The Latest Figures from MOSPI Show That 293 Out Of 559 Construction Projects in India Were Delayed As Of October 2010

DUBLIN--(BUSINESS WIRE)--Research and Markets(http://www.researchandmarkets.com/research/3ef251/india_infrastructu) has announced the addition of the "India Infrastructure Report Q2 2011" report to their offering.

India Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on India's infrastructure industry.

Our outlook for India's construction industry remains largely unchanged, with the country's construction industry forecast to average real growth of 7.9% per annum between the financial years (1 April to 31 March) of 2010/11 and 2015/16. This relatively high growth figure indicates that there are a large number of projects available to infrastructure companies throughout our forecast period and we see certain sectors, such as the power and airport sectors, presenting more opportunities than others. However, there are significant risks preventing the realisation of returns for these projects and these risks are inhibiting upside movement to our construction growth forecast.

The latest statistical data from India's Ministry of Statistics and Programme Implementation (MOSPI) show that real growth for the Indian construction industry reached 9.6% year-on-year for H110/11 (1 April 2010 to 31 September 2010). While this suggests that there is upside potential to our FY2010/11 construction forecast, we are maintaining our projections due to persistent concerns about the sector's ability to filter investment through to intended projects. Among these concerns, India's nebulous business environment remains the most pertinent.

India's business environment continues to be plagued by a convoluted and incoherent legal framework, rampant corruption, weak land clearance regulations and an environmental ministry that is over-zealous in prosecuting infringements, but slow in implementing policies. These issues have led to lengthy delays that cause massive cost overruns for many of India's construction projects. The latest figures from MOSPI show that 293 out of 559 construction projects in India were delayed as of October 2010. These delays allow wastage and corruption to fester, which leads to cost overruns. MOSPI calculates that the total cost of all 559 projects is forecast to exceed original cost estimates by approximately 21%.

Despite these problems, significant opportunities for greenfield projects remain, particularly in the infrastructure sector. Throughout our forecast period, infrastructure (one of the two subsectors which form the construction industry value according to BMI's definition) will be the main driver of construction industry value, substantially outperforming its counterpart - the residential and nonresidential building sector. The Indian government remains committed to developing sufficient infrastructure to meet the needs of the economy. According to BMI's key projects database, there are more than US$270bn worth of projects - under construction or in the pipeline - in India's infrastructure sector. This does not include projects that have not provided cost estimates, thus the actual value of infrastructure projects in India is likely to be significantly higher.

Key Topics Covered:

• SWOT Analysis
• Market Overview
• Building Materials
• Asia Overview
• Industry Forecast Scenario
• Construction and Infrastructure Forecast Scenario
• Transport Infrastructure
• Energy and Utilities Infrastructure
• Residential/Non- Residential Construction and Social Infrastructure
• Business Environment
• Project Finance Ratings
• Macroeconomic Outlook
• Company Monitor
• Gammon India Ltd.
• Reliance Infrastructure
• Global Overview

For more information visit http://www.researchandmarkets.com/research/3ef251/india_infrastructu