MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Forming part of the Report of Directors for the year ended March 31, 2014
As per 'RBI Macroeconomic and Monetary Developments 2014-15 (an update)' releasedby Reserve Bank of India on April 1, 2014, Recovery of Global economy is on track in 2014,though tightening financial conditions and the divergence in inflation pose risks. Sincethe January 2014 global growth outlook remains broadly unchanged though weaker initialdata to some extent cloud optimism. Global economic activity had strengthened in secondhalf of 2013. On the current reckoning, global growth is likely to be in the vicinity of3.5% in 2014, about higher than in 2013. The expansion in global output is expected to beled by Advanced Economies (AEs), especially the US. However, downside risks togrowth trajectory arise from ongoing tapering of Quantitative Easing (QE) in theUS, continuing deflation concerns and weak balance sheets in the euro area andinflationary pressures in the Emerging Market and Developing Economies (EMDEs). Weakeninggrowth and financial fragilities in China that have arisen from rapid credit in recentyears pose a large risk to global trade and growth. RBI further stated that:
1. Growth also picked up in the EMDEs during second half of 2013, but the momentumlooks weaker than in the Advanced Economies and it faces new risks. Improved EMDE growthemanated largely from external demand on the back of currency depreciation in thesecountries. Going forward, drag on its sustainability may emerge from tightening monetaryand financial conditions that can intensify further in case of a faster than - anticipatedwithdrawal of monetary accommodation by the AEs. Recent sovereign rating downgrade forBrazil and downward revision in rating outlook for Russia has also added to the growthrisks for EMDEs.
2. Global inflation remains benign with activity levels staying below potential inthe Advanced Economies as well as in some large EMDEs and a softer bias for globalcommodity prices continuing into 2014. However, inflation in many EMDEs remains high, thoughactions in tightening monetary policy and slack in output are expected to help generatesome disinflationary momentum. The divergent trends in inflation between AdvancedEconomies and EMDEs pose an added risk to global growth.
3. After the unexpected shock from the May 2013 tapering indication by the US Fed, globalfinancial markets have weathered the initial dose of actual tapering of theQuantitative Easing (QE) quite well. However, the global interest rate cycle has justbegun to turn.
4. Moreover, a large part of the withdrawal of monetary accommodation by AdvancedEconomies (AEs) remains to play out. Consequently, capital flows to EMDEs could remainvolatile, even if they do not retrench. Also, with corporate leverage rising in manyEMDEs, capital flow volatility could translate into liquidity shocks impacting assetprices.
The Reserve Bank of India in its said report further stated that:
1. The Indian economy is set on a disinflationary path, but more efforts may beneeded to secure recovery, while the global environment remains challenging, policy actionin India has rebuilt buffers to cushion it against possible spillovers. These bufferseffectively bulwarked the Indian economy against the two recent occasions of spillovers toEMDEs, the first, when the US Fed started the withdrawal of its large scale asset purchaseprogramme and the second, which followed escalation of the Ukraine crisis. On both theseoccasions, Indian markets were less volatile than most of its emerging market peers. Withthe narrowing of the twin deficits - both current account and fiscal -as well as thereplenishment of foreign exchange reserves, adjustment of the rupee exchange rate, andmore importantly, setting in motion disinflationary impulses, the risks of near-term macroinstability have diminished. However, this in itself constitutes only a necessary, but nota sufficient, condition for ensuring economic recovery. Much more efforts in terms ofremoving structural impediments, building business confidence and creating fiscal space tosupport investments will be needed to secure growth.
2. Annual average CPI inflation has touched double digits or stayed just belowfor the last six years. This has had a debilitating effect on macro-financial stabilitythrough several channels and has resulted in a rise in inflation expectations andcontributed to financial disintermediation, lower financial and overall savings, a widercurrent account gap and a weaker currency. A weaker currency was an inevitable outcomegiven the large inflation differential with not just the AEs, but also EMDEs. Highinflation also had adverse consequences for growth. With the benefit of hindsight, itappears that the monetary policy tightening cycle started somewhat late in March 2010 andwas blunted by a series of supply-side disruptions that raised inflation expectations andresulted in its persistence. Also, the withdrawal of the fiscal stimulus following theglobal financial crisis was delayed considerably longer than necessary and may havecontributed to structural increases in wage inflation through inadequately targetedsubsidies and safety net programmes.
3. Since, second half of 2012-13, demand management through monetary and fiscalpolicies has been brought in better sync with each other with deficit targets beinglargely met. Delayed fiscal adjustment materialised only in second half of 2012-13, bywhich time the Current Account Deficit (CAD) had widened considerably. The easing courseof monetary policy was disrupted by 'tapering' fears in May 2013 that caused capitaloutflows and exchange rate pressures amid unsustainable CAD, as also renewed inflationarypressures on the back of the rupee depreciation and a vegetable price shock. TheReserve Bank resorted to exceptional policy measures for further tightening the monetarypolicy. As a first line of defence, shorterm interest rates were raised by increasingthe Marginal Standing Facility (MSF) rate by 200 bps and curtailing liquidity availableunder the liquidity adjustment facility (LAF) since July 2013. As orderly conditions wererestored in the currency market by September
2013, the Reserve Bank quickly moved to normalise the exceptional liquidity andmonetary measures by lowering the MSF rate by 150 bps in three steps. However, with a viewto containing inflation that was once again rising, the policy repo rate was hiked by 75bps in three steps.
4. Recent tightening, especially the last round of hike in January 2014, was aimed atcontaining the second round effects of the food price pressures felt during June-November2013. Since then, inflation expectations have somewhat moderated and the temporaryrelative price shock from higher vegetable prices has substantially corrected along with aseasonal fall in these prices, without further escalation in ex-food and fuel CPIinflation. While headline CPI inflation receded over the last three months from 11.2 percent in November 2013 to 8.1 per cent in February 2014, the persistence of ex-food andfuel CPI inflation at around 8 per cent for the last 20 months poses diffcult challengesto monetary policy.
5. Against this background there are three important considerations for the monetarypolicy ahead. First, the disinflationary process is already underway with the headlineinflation trending down in line with the glide path envisaged by the Urjit PatelCommittee, though inflation stays well above comfort levels.
6. Second, growth concerns remain significant with GDP growth staying sub-5 percent for seven successive quarters and Index of Industrial Production (IIP) growthstagnating for two successive years. Third, though a negative output gap has prevailed forlong, there is clear evidence that potential growth has fallen considerably with highinflation and low growth. This means that monetary policy needs to be conscious of theimpact of supply-side constraints on long-run growth, recognizing that the negative outputgap may be minimal at this stage.
RBI in the said report has also mentioned the following:
Output and Demand: Growth stays low, structural constraints affect potential output - Growthin the Indian economy had been shifting down from 9.6 per cent in Q4 of 2010-11. Ittroughed around 4.4 per cent for three quarters from Q3 of 2012-13 to Q1 of 2013-14. Sincethen there are signs of growth bottoming out with marginal improvement recorded during Q2and Q3 of 2013-14 to 4.8 and 4.7 per cent respectively. However, this improvement has beenfeeble and clear signs of recovery are yet to emerge, even as the economy seems to begearing for a modest recovery during 2014-15.
Agriculture sector witnessed record production: The satisfactory monsoon and theabsence of extreme climatic events until lately augur well for agricultural production andrural demand. Adequate replenishment of soil moisture and reservoirs signifcantly boostedcrop production during 2013-14. As per the second advance estimates, the production ofrice, wheat, pulses, oilseeds and cotton during 2013-14 have been estimated to be thehighest ever. However, preliminary reports suggest that the unseasonal rains accompaniedby hailstorm, and frost during early March 2014 in various parts of the country hasadversely affected rabi crops like wheat, mustard seeds, onions and jowar. The possibleeffects of El Nino on the monsoon also add an additional element of uncertainty for futureharvests. In this backdrop, the ability to meet increased food demand in the context ofthe implementation of the National Food Security Act, in the face of tightening farmlabour markets and rising input costs remains a challenge.
Industrial growth stagnating: The Index of Industrial Production (IIP) showed noincrease during April-January 2013-14, compared with 1.0 per cent growth in thecorresponding period of the previous year. This stagnation in growth over two yearsreflects subdued investment and consumption demand. This has resulted in contraction inproduction of capital goods and consumer durables in the current year. Growth of coreindustries, which provide key inputs to the industrial sector, remained sluggish at 2.4per cent during April-January 2013-14 compared to a growth of 6.9 percent in thecorresponding period a year ago.
Inflation: CPI inflation declined to 8.1 per cent in February 2014 (a 25-month low)from 11.2 per cent in November 2013. Both the build-up of inflation during April toNovember 2013 and the subsequent fall in inflation during December 2013 to February 2014was driven by food prices.
As per the report of ICRA Ltd. (the credit rating agency) published in February,2014 following observations were made on Indian economy:
India's current account deficit has improved considerably,
led by a successful clamp down on gold imports, contraction in non-oil non-goldmerchandise imports following weak domestic growth as well as a pickup in exports. This,in conjunction with the shoring up of foreign exchange reserves through the USD 34 billiongarnered by way of the swap windows for Banks, shielded the Indian Rupee (INR) from thevolatility faced by several emerging market currencies after the US Federal Reservestarted tapering its Quantitative Easing (QE) programme in January 2014. Moreover, acurtailment of the Government of India's (GoI's) fiscal deficit for 2013-14 (according tothe revised estimate or RE) below the budgeted level has eased fscal concerns, althoughthe quality of expenditure compression is somewhat sub-optimal. Domestic consumptiondemand and investment activity remain sluggish, suggesting that economic growth wouldremain sub-5% for the second consecutive year in 2013-14. While a reversal of theweather-related spike in vegetable prices has cooled wholesale and retail inflation, thelatter remained elevated at 8.8% in January 2014. This is likely to preclude monetaryeasing in the near term, as the proposed monetary policy framework targets to bring downconsumer price inflation to 8% by January 2014 and 6% by January 2015. The report furtherstated that:
1. The report expects that the pace of growth of real GDP at factor cost is likely tohave eased marginally to 4.6% in Q3FY14 from 4.8% in Q2FY14, led by a slowdown in theperformance of industry. The Index of Industrial Production (IIP) indicates adeterioration in the growth performance of manufacturing and electricity in Q3FY14 ascompared to the previous quarter, with the latter reflecting a decline in growth ofthermal electricity generation. Manufacturing growth was dampened by a persistingsluggishness in investment and consumption demand. Moreover, delays in environmentalclearances for industrial and infrastructure projects and issues with respect to sandavailability in some States are expected to have resulted in subdued construction growthin Q3FY14.
2. The investment pipeline has shown signs of improvement, with clearancesawarded to projects under implementation and a pickup in new project announcements.Nevertheless, the long gestation of these projects would limit the uptick in investmentactivity in H1FY15.
3. Overall, ICRA expects GDP growth to improve somewhat to 5.0-5.5% in 2014-15, factoringin a normal monsoon, a mild improvement in manufacturing growth and a pickup in investmentactivity in H2FY15.
Indian Brand Equity Foundation (an initiative of Ministry of Commerce &Industries), in its report dated November, 2013 has said that India is the mostattractive investment destination in the world, according to a survey by globalconsultancy firm Ernst & Young (EY). The Indian economy is expected to grow at3.4 per cent in the current fiscal, a slight increase from 3.3 per cent in FY 2012-13, asper projections from the Organisation for Economic Co-operation and Development (OECD).The growth is estimated to be even greater in FY 2014-15 (5.1 per cent) and FY 2015-16(5.7 per cent). India's exports have also been doing well, touching US$ 303 billion in FY2012-13, almost double of what it managed (US$ 167 billion) four years ago. Expertsexpress confidence that the figure will scale US$ 325 billion by the end of the currentfiscal. The US$ 1.2 trillion investment planned in the infrastructure sector will go along way in boosting export performance of Indian companies and the Indian growth story.
The HSBC Trade Confidence Index, the largest trade confidence survey in theworld, has positioned India at the top with 142 points. The increasing demand due to itspopulation makes the country a good market for consumption goods, according to the report.
India's industrial economy is gathering momentum on the back of improved output ofeight core sector industries - coal, crude oil, refining, steel, cement, natural gas,fertilisers and electricity - which, at 8 per cent in September 2013, rose at its fastestpace in a year.
The Cabinet Committee on Investments (CCI) has approved the speedy execution of 36infrastructure projects entailing investments of Rs 1,830 billion (US$ 29.28 billion) toboost investor confidence, according to the then Union Minister for Finance, Government ofIndia.
Recent developments in India in April/May 2014 & your Company's perception aboutfuture growth:
The recent developments in the Indian Economy due to change in Government at centre,primarily based on the positive sentiments expressed all-around, including by differentmedia channels & social networking sites, are quite encouraging & promising as faras the industry & commerce is concerned. The future seems to be quite bright andindustry looks towards a strong growth path ahead. The different indices of stockexchanges are also showing an upward trend.
In the given environment of India being fairly poised towards growth, your Companystands in a strong position to grow rapidly due to its presence basically in theinfrastructure sector, which is the backbone of country's overall growth &development. The Company is making every effort to increase its business and profitabilitywhile reducing costs to the extent possible.
The Company's business is broadly classified in the following sectors:
1. Engineering & Construction
2. Manufacture & Marketing of Cement
3. Energy (Power & Transmission)
5. Real Estate and
INDUSTRY STRUCTURE AND DEVELOPMENTS RELATING TO COMPANY'S LINES OF BUSINESS
1. ENGINEERING & CONSTRUCTION
As reported last year, the Construction Industry was in perpetual mushroom growth modefor the past few years till it went into reverse gear and the slow down as a consequenceof economic melt down in November, 2008. While your Company is an acknowledged leader inthe field of multipurpose river valley and hydro-power projects and has in-housecapability for undertaking challenging assignments anywhere in the world on EPC(Engineering, Procurement and Construction) contract basis, it is facing increasingcompetition from new entrants in the packaged contract sector for the past few years,which is expected to increase due to possible reduction of opportunities in the immediatefuture, till the economy recovers and the growth rate of the economy starts clawing back.
As such, there is a slight shift in the strategy through increased involvement inBuild, Own, Operate (BOO) and Build, Operate and Transfer (BOT) Projects. The Jaypee Groupis also increasing its stake in power generation by going in for more and more of its ownprojects both in hydro and thermal power sectors.
CHALLENGES AND OUTLOOK
From a macroeconomic perspective, a high level of investment in the infrastructuresector is essential for the overall revival of investment climate which may finally leadto sustainable growth in an economy. Financing of infrastructure project is a crucialfactor for the timely completion of the project. In this regard 'The India InfrastructureFinance Company Limited' (IIFCL) has been given a important role for providing long termfinancing for infrastructure projects that typically involve long gestation periods byproviding guarantees for bonds issued by private infrastructure companies rather thanexpanding its direct lending operations.
However, in the current macroeconomic environment, to achieve this objective, there isneed to address sector-specific issues over the medium to long-term horizon in India.
'Indian Brand Equity' (an initiative of Ministry of Commerce & Industries) inits February, 2014 report stated that India's potential in infrastructure is vast and cementplays a vital role in the growth and development of the nation. India is the secondlargest producer of cement in the world. The cement industry has been expanding on theback of increasing infrastructure activities and demand from housing sector over the pastmany years. India's cement sector had clocked a 5.6 per cent growth in 2012-13 andprojects a growth of 5-6 per cent in the next fiscal, which would be supported by anexpected increase in demand from the rural sector and tier II and tier III cities, as perIndia Ratings and Research report. An investment allowance for infrastructure projects ofRs 100 crore (US$ 16.05 million) and above has also been announced by the Government.
In addition, cement production in India is expected to touch 407 million tones (MT) by2020.
Cement consumption in India is expected to rise by 8-9 per cent over the next year,taking the estimated cement consumption in 2013-14 to about 280-285 MT, from around 260 MTin the 2012-13 fscal, as per the Cement Manufacturers Association (CMA). The cementindustry may continue to witness a steady market for the better half of the year withfresh capacity of 20 MT going on stream in 2014, taking the industry capacity to 370 MT.
The Indian cement sector is expected to witness positive growth in coming years, withdemand set to increase at compound annual growth rate (CAGR) of more than 8 per centduring 2013-14 to 2015-16, according to RNCOS report titled, 'Indian Cement IndustryOutlook 2016'.
India has the capacity to become the world's third largest construction market by 2025and a US$ 1 trillion market, according to a study by Global Construction Perspectives andOxford Economics. The focus of the government on strengthening infrastructure, promotionof lowcost affordable housing, etc, is expected to drive cement demand. With theever-increasing industrial activities, real estate, construction and infrastructure, inaddition to the onset of various Special Economic Zones (SEZs) being developed across thecountry, there is a continuous demand for cement.
Moreover, major cement manufacturers in India are also increasingly using alternatefuels, especially bioenergy, to fre their kilns. The step will not only help to reduceproduction costs of cement companies, but is also proving effective in reducing emissions.
Future Outlook in Cement
The outlook of cement is bright considering the following factors:
1. Housing: The Housing segment accounts for a major portion of the total domesticdemand for cement in India, Real estate market is expected to grow at a CAGR of 17.2% over2011-15 to USD126 billion Growing urbanisation, an increasing number of households andhigher employment are primarily driving the demand for housing Initiatives by thegovernment are expected to provide an impetus to construction activity in rural andsemi-urban areas through large infrastructure and housing development projectsrespectively.
2. Infrastructure: The government is strongly focused on infrastructure developmentto boost economic growth It plans to increase investment in infrastructure to USD1trillion in the 12th Five Year Plan (2012-17), compared with USD514 billion under the 11thFive Year Plan (200712). Infrastructure projects such as Dedicated Freight Corridors aswell as new and upgraded airports and ports are expected to further drive constructionactivity.
The government intends to expand the capacity of the railways and the facilities forhandling and storage to ease the transportation of cement and reduce transportation costs.
3. Commercial: The demand for Commercial Real Estate segments, comprising retailspace, offce space and hotels, as well as civic facilities including hospitals,multiplexes and schools, has been rising due to the growth in economy. The demand foroffce space in India is being driven by the increasing number of multinational companiesand the growth of the services sector Strong growth in tourism, including both businessand leisure travel, has boosted the construction of hotels in the country.
Your management is of the view that the Indian cement industry had witnessed anincredible growth in the past, led by the growth in the real estate, infrastructure andindustrial construction. However, in recent couple of years cement demand growth took aslight breather. The cement industry has registered a drop in margins mainly due to inputcost rise and lack of pricing power. The Industry has been facing a chronic problem ofinsufficient availability of the main fuel coal, driving the manufacturers to resort touse of alternatives at steep cost. As the economic growth is expected to be stable, thecement demand is expected to sustain an average growth in demand. The key drivers of thisdemand shall be the continued expansion in infrastructure, real estate and industrialsectors.
'Indian Brand Equity' (an initiative of Ministry of Commerce & Industries) statedin its report dated October 2013, India has the world's fifth-largest electricitygeneration capacity and demand is expected to surge in the coming years owing to growth inthe economy. The power sector is high on India's priority as it offers tremendouspotential for investing companies based on the sheer size of the market and the returnsavailable on investment capital. The report also stated that:
1. The Indian power sector is one of the most diversified sectors in the world. Powerin India is generated from commercial sources like coal, lignite, natural gas, oil, hydroand nuclear power as well as other viable non-conventional sources like wind, solar,agriculture and domestic waste. The demand for electricity in the country has been growingat a rapid rate and is expected to increase further in the years to come. In order to meetthe increasing requirement of electricity, massive addition to the installed generatingcapacity in the country is required.The country offers unlimited growth potential forsolar photovoltaic (PV) industry as well. India is endowed with vast potential of solarenergy and is quickly developing itself as a major manufacturing hub for solar powerplants. Besides, it is expected that, the annual PV-installed capacity will grow at acompound annual growth rate (CAGR) of around 49.5 per cent during 2010-2014 to reach 1,500megawatt (MW) by the end of 2014, according to RNCOS research report titled, 'Indian SolarEnergy Market Analysis'.
2. Electricity production in India stood at 911.6 terra watt hour (TWh) in FY13, a fourper cent growth over the previous fiscal. Over FY07-13, electricity production hasexpanded at a CAGR of 5.5 per cent. The Planning Commission's 12th Plan projects thattotal domestic energy production would reach 669.6 million tonnes of oil equivalent (MTOE)by 2016-17 and 844 MTOE by 2021-22.
3. As of April 2013, total thermal installed capacity stood at151.7 gigawatt (GW),while hydro and renewable energy installed capacity totalled 39.6 GW and 27.5 GW,respectively. Nuclear energy capacity remained broadly constant from that in the previousyear, at 4.8 GW. For the 12th Five-Year Plan, a total of 88.5 GW of power capacityaddition is targeted, of which 72.3 GW constitutes thermal power, 10.8 GW of hydro powerand 5.3GW of nuclear power. The capacity addition target for 2013-14 is 1,198 MW of hydropower, 15,234 MW of thermal power and 2,000 MW of nuclear power. Total capacity target is18,432 MW.
4. The investment climate is very positive in the power sector. Due to surge inthe sector, the power sector has witnessed higher investment flows than envisaged. TheMinistry of Power has set a target for adding 76,000 MW of electricity capacity in the12th Five Year Plan (2012-17) and 93,000 MW in the 13th Five Year Plan (20172022).
5. Renewable energy is fast emerging as a major source of power. Wind energy isthe largest source of renewable energy in India; it accounts for an estimated 87 per centof total installed capacity in renewable energy. The country aims to increase theimportance of wind power even further, there are plans to double wind power generationcapacity to 20 GW by 2022.
6. Biomass is the second largest source of renewable energy, accounting for 12per cent of total installed capacity in renewable energy. There is strong upside potentialin biomass in the coming years.
7. Solar energy accounts for one per cent of total renewable energy installedcapacity. However, the share is not indicative of the country's true potential, whichstands at an estimated 5,000 TWh per annum.
Considering the huge potential in the Energy sector, your Company through itssubsidiaries is well equipped to seize the opportunity in this sector.
As per the report of ICRA Ltd. (the credit rating agency) published in February,2014 following observations were made on Indian Road sector:
a. After awarding 6,491 km of roads in FY12, the road sector witnessed a slump inaward of projects with only 1,156 km of road projects being bid out by NHAI in FY13 whichis about 17% of the target of 7,000 km set for the financial year. The lower projectawards have been on account of weak interest from private sector participants due todifficulty in raising funds, stressed financial position of many developers, delays ingetting right of way and clearances, relatively less lucrative stretches in the offering,as well as economic slowdown which has also impacted road traffic in the operationalprojects.
b. Notwithstanding the sharp decline in project awards, the performance on the projectexecution front improved in FY13. Backed by strong pipeline of projects under execution,the completion rate for NHAI projects increased to 7.9 km/day in FY13 from average of 6.2km/ day in FY12. However, progress on the projects awarded in FY12 remained muted mostlyin the absence of requisite right of way, clearances, and inability to achieve financialclosure. To reduce the uncertainty over land acquisition, NHAI has decided to award roadprojects only after substantial progress is made on the land acquisition and clearancefronts. Simultaneously NHAI has stepped-up its efforts on land acquisition. However, theacquisition process is often elongated due to capacity constraints faced by NHAI andopposition from land owners primarily over the compensation amount. Furthermore, multipleclearances from different authorities required for project often adds to the time overrunsand uncertainty. However, the de-linking of environment and forest clearance, and proposalto ease raw-material (aggregate) supply have been positive developments, which areexpected to aid project execution.
c. The interest of private players towards the Public-Private Partnership (PPP)projects in the sector has waned as evident from the weak bidding response in the offeredprojects, stated intent of some prominent developers to reduce theirBuild-Operate-Transfer (BOT) project exposure, lower number of pre-qualified bidders forCY13, and intent to exit or renegotiate some of the projects awarded earlier. Whiledecline in interest may be attributed partly to the subdued macro-economic environment,the weakening of the financial profile of many developers has also led to the lukewarmresponse to the recent biddings. Given that the sentiment towards the BOT projects in thesector could continue to remain weak in the short to medium term, NHAI's initiatives inawarding projects on Engineering, Procurement and Construction (EPC) and Operate, Maintainand Transfer (OMT) basis is a welcome step, as this would unbundle the execution, fundingand traffic risks and could stimulate participation from the private sector.
India's road network, spanning across 4.69 million km, is the third largest roadnetwork in the world, next in line only to the US and China. The country reliesheavily on its robust road network that carries almost 65 per cent of freight and 80 percent of passenger traffc. National Highways (NH), under the jurisdiction of NationalHighways Authority of India (NHAI), constitute for almost 2 per cent of the network butcarry about 40 per cent of the total road traffc.
Thus, India relies heavily on roads to move freight in the most cost efficient andeffective manner. The
Indian Government intends to earmark US$ 1 trillion for infrastructure development overnext five years. To speed-up the same, it is also trying to rope-in private investmentsthrough public-private partnerships (PPPs). The Government has been tweaking its policiesto make the sector more investor-friendly. Key Developments and Investments Foreign DirectInvestment (FDI) received in construction development sector from April 2000 to July 2013stood at US$ 22.44 billion, according to Department of Industrial Policy and Promotion(DIPP).
India and China have signed a bilateral pact on cooperation in the road transportatio