According to CRISIL Ratings, India's need to build sustainable infrastructure will be impacted by adding more green energy to the energy mix, improving physical connectivity through dense road networks as well as increasing demand for residential and commercial real estate.
For renewable energy, the key growth driver is demand for a sustainable energy transition.
The report noted that the government aims to boost auctions, leading to a strong pipeline.
“The underlying demand drivers across these three sectors remain strong, with regular policy interventions driving investor interest. “It has also supported the healthy credit risk profile of private players and strengthened their execution and funding capabilities,” said Krishnan Sitharaman, senior director and chief rating officer, CRISIL Ratings.,
India saw auction of 35 GW in FY2024, the highest ever in a single fiscal year, resulting in a strong pipeline of 75 GW.
This will primarily lead to the implementation of 50 GW capacity in the next two financial years, the report said.
When it comes to the road sector, the need for better physical connectivity, which helps drive efficiency gains for the economy, has yielded good rewards in the last few financial years, except the last one.
"Road developers' strong order book at 2.5 times revenues will support 11 per cent growth in highway construction, seen at 12,500 km per annum over the next two financial years," the report said.
As far as real estate is concerned, the net lease of commercial office space will see an 8-10 per cent growth in demand in this financial year and the next financial year.“A cumulative amount of Rs 2 lakh crore of equity capital has been deployed in these sectors due to strong investor participation over the last two financial years,” said Manish Gupta, senior director and deputy chief rating officer.
For renewable energy, the key growth driver is demand for a sustainable energy transition.
The report noted that the government aims to boost auctions, leading to a strong pipeline.
“The underlying demand drivers across these three sectors remain strong, with regular policy interventions driving investor interest. “It has also supported the healthy credit risk profile of private players and strengthened their execution and funding capabilities,” said Krishnan Sitharaman, senior director and chief rating officer, CRISIL Ratings.,
India saw auction of 35 GW in FY2024, the highest ever in a single fiscal year, resulting in a strong pipeline of 75 GW.
This will primarily lead to the implementation of 50 GW capacity in the next two financial years, the report said.
When it comes to the road sector, the need for better physical connectivity, which helps drive efficiency gains for the economy, has yielded good rewards in the last few financial years, except the last one.
"Road developers' strong order book at 2.5 times revenues will support 11 per cent growth in highway construction, seen at 12,500 km per annum over the next two financial years," the report said.
As far as real estate is concerned, the net lease of commercial office space will see an 8-10 per cent growth in demand in this financial year and the next financial year.“A cumulative amount of Rs 2 lakh crore of equity capital has been deployed in these sectors due to strong investor participation over the last two financial years,” said Manish Gupta, senior director and deputy chief rating officer.
