Friday, June 12, 2009

Simply Invest through Reliance Infrastructure Fund

Dear Investor,
The investment environment still continues to remain as challenging as ever. The year 2009 has seen a continuation of the economic and financial woes of 2008. However, the outcome of 2009 general elections has indicated a positive signal for the recovery of the economy and thus has helped in boosting investors’ confidence. In addition the immediate priority of the new Government of concentration on execution and emphasis on development would in turn benefit the infrastructure sector.

Infrastructure has always been an important part of India’s five year plans (FYPs) and since independence in 1947, nearly half of the total outlays of the FYPs have been allocated to infrastructure. In the Eleventh FYP, Planning Commission has estimated a planned expenditure of USD 494 Billion, which is 2.3x the amount in Tenth Plan, with 30% of it coming from private players.

Congress Manifesto- Makes intentions clear

Increase public investment in infrastructure
Ensure that India adds at least 12000-15000 MW of power capacity every year.
Rural electrification & reduction in distribution losses.
Implement a scheme to supply energy to poor families at affordable prices.
Promises a very significant increase in the share of nuclear power.
Connect villages through broadband network within 3 years
Source: Congress Manifest 2009

Intentions evident in Interim Budget 2009

Government accorded approval to 37 infrastructure projects worth Rs.70,000 crore from August, 2008 to January, 2009 alone.
Under PPP mode, 54 Central sector infrastructure projects in-principal or final approval and 23 projects approved for viability gap funding in 2008-09.
India Infrastructure Finance Company Ltd. (IIFCL) to refinance up to 60 % of commercial bank loans for PPP projects involving total investment of Rs.1,00,000 crore in infrastructure over the next eighteen months.

Simply Invest through