Monday, July 15, 2024
spot_img

Renewables, roads, realty sectors to see 38 pc growth to reach Rs 15 lakh crore in 2 years: Report

Date:

Share post:

spot_img
spot_img

New Delhi, June 18: Riding on supportive policy interventions, investment in India’s key infrastructure sectors — renewable energy and roads – and real estate are likely to grow 38 per cent in the fiscals 2025 and 2026, compared with the previous two fiscals, to Rs 15 lakh crore, a report showed on Tuesday.

The surge, according to CRISIL Ratings, will ride on India’s need for creation of sustainable infrastructure by adding more green power to the energy mix, improving physical connectivity through a denser road network, as well as rising demand for residential and commercial real estate.

For renewables, the key growth driver is demand for sustainable energy transition.

The government’s target is driving up auctions, which has created a strong pipeline, the report mentioned.

“The underlying demand drivers in these three sectors remain strong, with regular policy interventions fuelling investor interest. This has also supported healthy credit risk profiles of private players and strengthened their execution and funding capabilities,” said Krishnan Sitaraman, Senior Director and Chief Ratings Officer, CRISIL Ratings.

India saw auctions of 35 GW in fiscal 2024, the highest-ever in a single fiscal, resulting in a strong pipeline of 75 GW.

This will primarily drive implementation of 50 GW capacity over the next two fiscals, said the report.

When it comes to the roads sector, the need for improved physical connectivity, which helps in efficiency gains for the economy, has driven healthy awarding over the past few fiscals, barring the last one.

“Strengthened order books of road developers, at 2.5 times of revenue, will support 11 per cent growth in highway construction, which is seen at 12,500 km per year over the next two fiscals,” the report noted.

As for real estate, net leasing of commercial office space will see demand growth of 8-10 per cent in this fiscal and the next. “Cumulatively, Rs 2 lakh crore of equity capital has been deployed in these sectors over the past two fiscals driven by strong investor participation,” said Manish Gupta, Senior Director and Deputy Chief Ratings Officer.

–IANS

spot_img
spot_img

Related articles

1.5 lakh youths to get jobs during govt’s 5-year term: Himanta

Guwahati, July 15: Assam chief minister Himanta Biswa Sarma on Monday revealed that the incumbent government has set...

US scientists decode 125-year-old element to boost cancer treatments

New Delhi, July 15: US researchers have decoded an element that could destroy cancerous cells, and advance treatment...

Filmmaker Nallamuthu advocates for an Indian wildlife channel

Jaipur, July 15: Renowned wildlife filmmaker Subbiah Nallamuthu, who recently won the 18th V Shantaram Lifetime Achievement Award,...

24X7 coordinated patrolling by Indo-Bangla border forces to curb crimes, infiltration

Agartala, July 15: India’s Border Security Force (BSF) and the Border Guard Bangladesh (BGB) will do coordinated patrolling...