India’s Engineering & Power sector is growing firmly as the energy consumption has been increasing at one of the fastest rates in the world due to economic development & population growth. Though India is ranked fifth in terms of primary energy consumption but per capita energy consumption is still on the lower side as compared to other developing countries. The demand for power is growing exponentially & the scope of growth in this sector is enormous and the team of skilled professional of Signature Staff is well versed to meet all the requirements of the client on time. Our Expertise in Power & Energy Sector comprises of Engineering Oil & Gas Engineering Pipelines Engineering Mechanical Process Engineering Engineering Heating & Thermal Equipment Engineering Instrument Project Engineering Engineering Rotating Equipment Safety Engineering.
India’s EPC market has come under the global scanner. The sector has witnessed consistent changes over the past few years, with increasing project sizes, scale and market maturity. Riding on India’s infrastructure requirements over the next five years, the EPC sector is likely to make major advances. The sector is also attracting an increased interest from global majors, Indian conglomerates, as well as infrastructure developers.
The key highlights of the Indian EPC sector are:
> There is an increasing reliance on the private sector for the growth of the EPC sector.
> Indian players have taken the inorganic route to venture into international markets, global construction giants are also increasingly attracted to India’s growth story.
> Many EPC contractors are diversifying into the asset development business, while others are forging technical partnerships, especially with foreign players.
> Power sector grabs the major share of the proposed infrastructure investments in Twelfth Five Year Plan (2012-17).
> The urban infrastructure and telecommunications sectors are also expected to witness enhanced investment.
> Reforms are awaited for the unbundling of the railways sector.
Key challenges faced by the Indian EPC sector:
Alleviating time and cost overruns pose a major challenge for majority of infrastructure projects:
> As on February 2011, out of a total of 559 ongoing infrastructure projects in India, 293 were delayed.
The EPC sector is also faced with shortage of manpower, machinery and material.
> Construction reports detail 40% shortage of skilled construction workers. Fluctuating steel and cement prices also give rise to cost overruns. Moreover, as companies procure and own assets, they risk decreasing efficiencies and idle resources.
Fund-raising is another key challenge faced:
> One of the key challenges for the sector in the backdrop of market turmoil and fears of a slowdown is the ability to raise adequate financing required to fund the execution of existing large order books.