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Executive Summary……………………………………………………………………………7 
2. Overview………………………………………………………………………………………..9
Construction is one of the fastest growing sectors of the
Indian economy. It is also the second largest employer in
the country after agriculture.
3. Financing……………………………………………………………………………………...17
Inadequate finance facilities from Indian banks and financial
institutions have always been a complaint from the Indian
construction contractors. The extent of finance, biased
assessment of creditworthiness, excessive charges for bank
guarantees, treatment of expired guarantees and excessive
transaction costs have been resented by several Indian contractors
since long.
4.Roads…………………………………………………………………………………………...25
Roads are what have brought about the infrastructure revolution
in India. It all started with the National Highways Development
Programme financed by a cess on petrol and diesel. From
there, financing of road projects have come a long way with
the involvement of private players and the growing popularity
of Built Operate and Transfer (BOT) Projects.
5.Power…………………………………………………………………………………………...41
India has always been deficient of power. Large investments
in generation capacity, thermal as well as hydel propose
to remedy the situation by 2012. The bulk of new investment
will be done by the public sector, primarily NTPC and NHPC.
The Electricity Act-2003 is expected to encourage private
sector investment in the area, particularly in captive generation.
6.Power Transmission…………………………………………………………………………...66
This is one of the sectors in construction where Indian
companies are world beaters. All the major players get a
big chunk of business from overseas. With new projects of
Power Grid coming up, the focus will now shift to the domestic
market. Given the entry barriers, this industry is unlikely
to witness large scale entry of new players as had happened
in case of roads.
7.Hydrocarbons………………………………………………………………………………….76
Large scale activity is going on all major fronts, be it
refining, pipelines or LNG. Refining investments are in
the form of brown-field expansions while new capacity is
being built for LNG. India’s increasing hunger for
energy will power this sector in foreseeable future.
8.Urban Infrastructure………………………………………………………………………….99
Infrastructure in Indian cities leaves a lot to be desired.
Whether it is the over utilized urban mass transit systems
or the water supply and sewerage systems, the pressure on
all the city level infrastructure amenities are hitting
the limits. Lately more and more cities have developed awareness
about the problem and are working at ways to improve the
plight of the urban citizen.
9.Company Profiles…………………………………………………………………………….110
There are very few large players in the Indian construction
industry. However, the existing companies are now witnessing
strong growth due to the large scale investment in infrastructure
projects. Healthy order books and proposed investments will
ensure growth in the future.
10.Construction Material……………………………………………………………………...134
Growth of industries such as cement and steel depends upon
the growth in other sectors. Both these sectors will display
strong growth due to the ongoing activity in the construction
industry. Some niche areas, such as steel pipes are directly
dependent upon infrastructure projects.
11.Project Exports……………………………………………………………………………...154
Indian companies have run up an enviable record in winning
and executing projects in Middle-East, Africa and East-Asia.
However, Indian companies still lack the scale to compete
for big-ticket items with global majors. Strong growth from
domestic business can help them achieve the critical mass.
12.International Companies…………………………………………………………………...164
Unlike in India, International companies are multi-billion
dollar entities. Indian construction firms are quite small
with only a handful having a turnover in excess of Rs 1,000
crore. Perhaps as the market matures, it will be more in
line with the way infrastructure construction industry in
developed countries with a handful of mid sized companies.
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