Mumbai: High operational costs along with construction and policy risks are some of the major obstacles for infrastructure projects in the country, a Colliers International report said on Wednesday.
With a likely surge in the urban population of India by 2050 to 1016 million people, an additional $402 billion is envisaged for the development of highways, airports, roadways, industrial corridors, and the smart city mission, it said.
“However, many roadblocks such as high operational costs, construction and policy risks, the absence of incentives for private participation, and the lack of profitability from infrastructure projects are deterring the financing of such projects,” it said.
Joe Verghese, Managing Director, Colliers International India said: “The real estate contribution to GDP is set to rise to double digits in the coming years owing to various initiatives such as smart city mission, PMAY, and mega infrastructure projects progress.” (IANS)