The importance of infrastructure in the development of the economy needs no underscoring. As the Indian economy moves ahead with an above 9% growth rate, infrastructure investment is gaining a lot of attention. Further, from the earlier stage of exclusive dependence on the government, the policy framework stipulates that government step up public investment while joining hands with the private sector for capital-intensive infrastructure projects.

As per the Indian Economic Survey 2006-07, an investment of Rs.14,500 billion or about US$ 320 billion will be required in the infrastructure industry up to 2012. The government is expected to focus on modernizing and upgrading the highways, improving the civil aviation infrastructure in terms of airports and runaways, upgrading ports, and building the railway infrastructure.

The Indian real estate industry is also attracting interest. Housing assets continue to be in good demand and IT and retail are driving the commercial real estate. Many state governments have given an impetus to the real estate industry by repealing the Urban Land Ceiling Act, amending the Rent Control Act, and rationalizing the number of taxes. Another factor conducive to the growth of the industry has been availability of banking credit.

Apart from old players such as HCC, Gammon, IVRCL, and Nagarjuna Construction, a good number of new players from established houses like Reliance and Bharti are jumping into the fray with joint venture partners, to seize upon the opportunity that real estate offers. Real estate players like DLF, Unitech, Raheja, and Hiranandani have massive plans up their sleeves for developing residential and commercial real estate.

With the announcement of several mega and ultra-mega power projects, the power sector also seems to be showing signs of revival. If the government goes ahead with much-needed power sector reforms, the sector has the potential to grow at a fast pace and further fuel growth in the economy.

The infrastructure industry is as challenging as it is exciting. Projects with massive outlays face major challenges ranging from financial closure to execution problems of time and cost overruns. Further, bigger projects like SEZs and international airports face more complications with respect to funding and execution. Business models of infrastructure projects need understanding of the economy and of the inter-linkages with a number of industries.

Managers in this sector would have to be well-versed with project planning, project financing, developing loan proposals, loan processing, credit sanctioning, progress monitoring, cost estimate preparation, and risk management. They would have to keep abreast of developments in different aspects of infrastructure and real estate.

The Master of Infrastructure Management Program introduces students to the opportunities and challenges in this dynamic sector.