Construction Giant Shapoorji Pallonji Plans To Invest INR 850 Cr for Bengaluru and Eluru Smart City Projects
Published Date | 2019 March 11
Shapoorji Pallonji’s investment for the development of smart city project will also grow the market of the LED Lightning system in coming years
India: Construction major Shapoorji Pallonji is eyeing opportunities in the smart city space have raised INR 850 crore over the six months to fund its Bengaluru and Eluru smart city projects where the raising debt of INR 450 crore is for the Eluru project and INR 400 crore is for the Bengaluru project. The fund will get released for the Bengaluru project in the next four months and within the next six months for the Eluru project. Moreover, the Eluru project is worth INR 1,400 crore, and Bengaluru is INR 1,000 crore. Eluru project is a hybrid annuity model which will cover seven different projects like road improvement, 19 traffic junction improvement, intelligent traffic management, smart grids and energy management, sewage treatment and storm-water drainage. Whereas, the Bengaluru project is a public-private partnership project in which 5 lakh street lights will get replaced with LED bulbs and will be a smart project that will have sensors at poles to control the lighting and save energy. However, it’s a consortium where Shapoorji Pallonji owns 59% stake, Samudra Technologies has 15% and SMC the remaining 26% share. The project will be completed in the next 30 months which is divided into five phases and will be operated for the next 10 years. According to BlueWeave Consulting, the investment will enhance both the market of smart city and the LED lighting system. Owing to the growing awareness about ‘smart everything’, the smart cities concept has also been gathering huge attention, which is essentially the output of all intermediary technologies. The key factor contributing to the growth includes the key player’s focus on integrating infrastructure, social and human capital, and disruptive technologies to build a sustainable economy as well as governance participation. The market is also driven by recent technological advances in domains such as healthcare, transport, energy, governance, and intelligence gathering and hence the market is anticipated to expand at a healthy CAGR in the coming years. Additionally, smart city initiatives are basically planned to organize services to enhance sustainability and livability in the city. Moreover, the LED lighting market will grow on accounts of reduction in the price of LED products and an increase in infrastructure-building activities will drive the market. Furthermore, the significant reductions in the price of LED lighting systems in recent years have enhanced the adoption of various LED lighting products worldwide. In addition, governments have also introduced favorable regulations regarding conventional lighting and energy consumption across the country which is anticipated to favor the market demand for LED lighting. According to BlueWeave Consulting‘s published report, Titled-“Global Smart Cities Market, By Component (Hardware, Software) By Application (Smart Governance, Smart Infrastructure, Smart Education, Smart Healthcare, Smart Security & Threats, Smart Utility, SmartBuilding, Smart Transportation, Others) By Region (North America, Europe, Asia Pacific, Middle-East & Africa, and Latin America) Size and Forecast 2014-2014 -the global Smart Cities market was valued at US$ 824,774.8 Mn in 2017 and is expected to expand at a CAGR of 21.5% from 2018 to 2024, reaching US$ 3,180,358.5 Mn by the end of the forecast period. Greater involvement of the corporates and growing public-private partnerships are some of the major trends observed in this market. From past decade, electric vehicle (EV) concept has gained popularity for smart and sustainable development of urban as well as non-urban grounds due to a number of reasons, which is further firming the growth of this market. According to BlueWeave Consulting‘s published report, Titled-“ Global LED Lighting Market, by Product (LED Bulbs, LED Fixtures, Bare LED Tubes, LED Down Lights and Others), by End-Use Industry (Residential, Commercial & Industrial), by Application (Outdoor, Indoor, Backlight, Automotive and Others), by Distribution Channel (Retail Distributors and Online Suppliers), by Region (North America, Europe, Asia Pacific, Middle East & Africa and Latin America); Size and Forecast, 2014-2025- Global LED Lighting market is expected to grow with a CAGR of 13% during the forecast period 2018-2025, due to growing application of LED Lights in Residential, commercial and Industrial sectors. Rising urban population and consumer shift towards energy efficient lighting system will positively drive the LED lighting Market. Since the scarcity of natural resources and costs of energy are increasing, LED lighting is among the most cost-effective products to reduce the depletion of natural energy resources.