The infrastructure sector is key to promoting development. For an economy like India that is developing at a rapid rate and in the near future plans to become the manufacturing hub, the support from infrastructure is more crucial and inevitable. India has recently moved up in the rankings such as the World Bank’s Ease of Doing Business Index and Logistics’ Performance Index which reflects the rate of development of the country.
The government has also taken multifarious measures to promote infrastructure in the country. These measures are multi-pronged and encompass facets such as urban development, energy transmission, roadways, railways, inland waterways, etc. The Smart City Project is a flagship programme that needs immense infrastructure support for its operationalisation. Similarly, other projects such as Sagarmala and Bharatmala Pariyojana, Dedicated Freight Corridors, etc. also require infrastructure-based support for its implementation. In the real estate sector, the formulation of schemes related to housing in the urban and the rural areas bring to fore ample scope and investment opportunities.
The infrastructure and real estate sector are regulated by various legislation and regulatory agencies as under –
- Contractual and proprietary aspects of infrastructure – These are regulated by legislation such as the Indian Contract Act, 1872, Transfer of Property Act, 1882, Registration Act, 1908, laws related to transfer of property and land in the State, etc.
- Regulations issued by regulatory agencies (such as Real Estate Regulatory Authority) and ministries, with special reference to Foreign Direct Investment in the infrastructure sector in India – FDI policy and regulations issued by the RBI, regulations related to pollution, etc.
Mega infrastructure sector projects in India are undertaken mostly by public sector undertakings in partnership with the private enterprises. Therefore, these projects are also regulated by overseers such as the Procurement Policy Division of the Ministry of Finance, Chief Technical Examiners, etc. The infrastructure sector operates in a complex interrelated manner and therefore is also affected by regulations of the respective ministries and governmental departments.
The projected investment in the infrastructure sector is estimated to be US$50 trillion by 2022. With these immense opportunities come to India and the future of infrastructure sector is promising but this requires effective legal support to augment the growth trajectory.