Rising urbanization needs $20 trillion infrastructure investment by 2040: Maharashtra Government official

Rising pace of urbanisation in India is expected to need investments worth $20 trillion by 2040 to create infrastructure as over 70% of India’s population will move to urban areas, said Ashish Kumar Singh, principal secretary, Public Works Department (PWD), Government of Maharashtra.

He also highlighted the challenges faced by the government in executing infrastructure projects particularly the need for a pool of contractors who are supported by a team of skilled personnel who can deliver world class projects.

Singh stressed on need to develop manpower capability while speaking at the Confederation of Indian Industry (CII) Conference on Infrastructure Project Management.

The infrastructure sector represents a huge opportunity. It is estimated that in the US an investment of 3.6 trillion dollars will be required till 2020 to just keep the current infrastructure going. So we can only imagine the quantum of investment and skill that will be required to maintain not only the existing 90,000kms of roadway but also the additional 13,000 kms of National Highway and 10,000 kms of state highways that will be built in the next 4-5 years in the state of Maharashtra, he added.

According to Niranjan Hiranandani, Co-founder and Managing Director, Hiranandani Group, it is very important not to judge timelines by historical data as the scenario has changed from the past view of project management.

“There is a paradigm shift towards finding solutions and achieving timelines no matter what the challenges. The important point here is to make things happen,” Hiranandani said while citing example of a 16 storied building built by the Hiranandani Group constructed in the Gandhinagar SEZ in a record 12 months.

Sanjay Sethi, Chief Executive Officer, Maharashtra Industrial Development Corporation (MIDC) emphasized the need to consider the whole value chain and the move towards integrated land use and transport planning since the growth in one sector cannot preclude the other. He highlighted Integrated Industrial Areas where under the new policy, land will be dedicated to industry, housing, and commercial development in the ratio of 60%, 30% and 10%, respectively.