Indian Roadways Sector: The Lifeline of Economy (November 2011)

Nov 21, 2011

Monthly e-newsletter of OIFC

Dear Reader,

November 2011

This edition of 'IndiaConnect' focuses on the Roadway Infrastructure sector in India. The country has one of the largest networks of roads, comprising of highways, state highways, district roads, rural roads, expressways and other major state / district highways, with a total road network of 42.36 lakh km. Indian highways development project is considered to be the largest Public Private Partnerships (PPP) programme in the world. It is envisaged that roadway projects in India over the next few years, would require an investment of around US$ 70 billion, out of which US$ 41 billion would come from the private sector.

Our Partners from the States of Karnataka and Punjab give insight on the development of road infrastructure in the country as well as in their respective states and our Premium Knowledge Partner, Punjab National Bank focuses on the potential of road infrastructure development in India, with emphasis on the opportunities for Non Resident Indians (NRIs) in this sector.

The forthcoming Pravasi Bharatiya Divas (PBD), the annual flagship convention of the Ministry of Overseas Indian Affairs (MOIA), partnered by Confederation of Indian Industry (CII), will be held in Jaipur from 7-9th January, 2012. During the occasion, the Overseas Indian Facilitation Centre (OIFC) will be organizing the 6th OIFC Market Place Forum. The OIFC Marketplace is a premier business networking forum for the PBD delegates to facilitate the expansion of their economic linkages with India, and encompasses the setting up of business meetings of PBD delegates with OIFC's State & Knowledge Partners that help match buyers and suppliers, through a pre-event scheduling.

Our regular features "Economy Watch" and "IndiaUpdates" keep you informed on the emerging political, economic and sectoral environment in India.

We are delighted to announce that OIFC is now a mobile friendly site. Please visit us at http://m.oifc.in from your handheld device for latest updates on OIFC.

Stay Connected with OIFC!

Sujata Sudarshan
CEO
Overseas Indian Facilitation Centre

ourservices

Our investment consultation and facilitation services have been steadily attracting numerous queries from Overseas Indians across geographies, round the clock. These include queries for guidance on tax, legal, investment, education, human resource (HR) services and pre-entry market exploration. Register and avail of our investment consulting and facilitation services.
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infocus

Roadway Infrastructure Development and Opportunities in India
With remarkable growth in the economy and liberalised policies and deliberate sector strategies adopted by the Indian Government, the country is also witnessing increasing opportunities in the infrastructure sector. In fact, all the major segments within the infrastructure sector have observed growth trends, with the roads and highways sector showing tremendous activities in the recent past. Further, various Government initiatives have also resulted in increasing the number of Public Private Partnerships (PPPs) in this sector.
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Contributions from our Partners

discussionforum

An efficient roadway system is an important component for sustainable economic development of a country such as India. A well-developed roadway system besides helping in the economic growth of the country also enhances connectivity of the remote areas to nodal region and cities.

Roads are also considered to be the most cost effective and preferred modes of transportation as these are easily accessible and even help in linking other modes of transportation. Thus, a well connected roadways system ensures promotion of trade and economy, which further translates into sustainable economic growth for the country. However, it is also required that in order to keep pace with the rising demand, the road infrastructure in the country should also be developed.

We invite you to contribute on the subject on the importance of roadways in the economic development of the country.

Let's discuss.

investmenttrends

India's total private transfer receipts, comprising mainly remittances from overseas Indians, for the period April-June 2011-12 (Preliminary) stood at 14.4 billion, while between April-June 2010-11 (Partially Revised), private transfers receipts amounted to US$ 13.7 billion, according to the figures released by the Reserve Bank of India (RBI) in November 2011.
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yourquery

Q: Are NRIs allowed to participate in rural roadway development projects by using locally available material, low-end machinery and appropriate technology?

A: Yes, since 100 per cent Foreign Direct Investment (FDI) is allowed in Road Construction business, therefore NRIs can participate in the same. In order to enter into rural roadway development business, NRIs would need to establish the business in form of a company / Limited Liability Partnership (LLP) and thereafter bid for contracts issued by concerned authorities such as Municipal Corporation and National Highway Authority of India, for the construction of roads.

(Answered by our Knowledge Partner Corporate Professionals)
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policy&newsupdates

Dr. C.P. Joshi Addresses 2nd ASEM Transport Minister's Meeting & Transport Development Forum at Chengdu, China
Dr. C.P. Joshi, the Union Minister for Road Transport & Highways has said that India's economy is one of the fastest growing in the world.
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