- Our Business
Indian cities are fast emerging as engines of economic growth with an estimated
60% of the country’s gross domestic product (GDP) originating from urban areas.
High levels of economic growth have resulted in increased migration to cities. Currently,
about 30% of the population lives in urban areas and this is expected to grow to
40% by 2021. Increasing urbanization coupled with unplanned and unregulated growth
has put significant pressures on urban infrastructure, especially urban transport.
Furthermore, increased income levels have translated into a greater shift towards
private vehicles. As a result, Indian cities are witnessing high congestion levels.
The economic and social losses due to congestion can be as high as 10% of GDP. Studies
indicate that investment in urban transportation can trigger direct and indirect
economic benefits with an estimated multiplier effect of 1% to 6% of GDP. Considering
these benefits, several cities in India are taking steps to make their urban transport
systems efficient. Well-planned and structured transport systems will increase the
competitiveness of the cities along with improving the quality of life for their
It is estimated that an investment of over Rs.70 billion is planned for Bus Rapid
Transit System (BRTS) projects in 12 cities and over Rs.900 billion is planned for
rail-based Mass Rapid Transit System (MRTS) projects in 10 cities over the next
five years. In addition to this, private investments of over Rs.300 billion are
planned for urban road projects. A number of cities are planning to undertake multi-level
parking projects, develop non-motorized modes of transport, construct inter-state
terminals, etc. Thus, the future outlook for the transport sector is promising.
HCC Infrastructure is currently evaluating opportunities to engage in the creation and management of assets in the area of transport
such as BRTS, MRTS, monorails, inter-state terminals, etc. It has collaborated with
global technology providers, real estate developers and state governments to pursue
a leadership role in developing India’s urban transport systems.