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Growth of Infrastructure in India.

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Presentation on theme: "Growth of Infrastructure in India."— Presentation transcript:

1 Growth of Infrastructure in India.

2 Introduction Defined as a set of activities through which goods and services are provided to public. Definition keeps on evolving with time. It is fluid. (e.g. irrigation, fibre optic) Does not produce goods and services but provide a suitable environment for the production.

3 Infrastructure Growth in India
Progress of primary and secondary sector directly depends upon infrastructure. Ensures synergy through backward and forward linkage providing strong base. Indian Government taking every possible step. RBI notified 100% FDI in construction development sector. (Automatic Route) Has relaxed rules regarding FDI, liberalized the exit norms.

4 Bottlenecks To Infrastructure Development
Meeting the needs of burgeoning population. Inhospitable Business Environment for infrastructure investors. Indiscriminate Urbanization. Reforming Infrastructure Financing. Attracting foreign investment. Speedy implementation of Projects. Environmental Clearance Policy to be Articulate. Co-ordination between Government Agencies. Short Tender Process.

5 Meeting the needs of burgeoning population.
Indian population- 1.2 billion. Population places demand on infrastructure. Hence infrastructure faces pressure.

6 Inhospitable Business Environment for infrastructure investors.
Plagued by certain problems like unpredictable regulations, bureaucratic delays, struggles to secure land rights, corruption, low transparency and labour laws.

7 Indiscriminate Urbanization.
Rapid and unbalanced urbanization. 590 million people will shift to cities by 2030. This unbalanced growth puts a pressure on the infrastructure and also leads to governance issues.

8 Reforming Infrastructure Financing.
Large funding gap in 12th 5 year plan. (Rs.14,60,870 cr.) Hence immediate challenge to introduce reforms in infrastructure financing.

9 Attracting foreign investment.
Ending of 12th year plan, 47% of infrastructure share would be with private sector. New potential investments- 1. China. 2.Japan 3.US

10 Speedy implementation of Projects.
Infrastructure projects get delayed due to land acquisition. Solution- Land acquisition be done by the government prior to the project bidding stage and project commences only after land acquisition.

11 Environmental Clearance Policy to be Articulate.
Major roadblock- Government does not have clear and well defined environmental clearance policy. Solution- Suitable bodies or independent consulting companies should be fostered to help bidders get clearance at a faster pace.

12 Co-ordination between Government Agencies.
Currently 7-8 clearances are required to set up power projects. Situations in other sectors equally grave. Takes about years. Solution- Single window clearance system with specific guidelines for time bound approvals.

13 Short Tender Process. Reduction in time lag would reduce the project costs. Rise in material costs due to inflation would also be controlled.

14 Energy Policy Objectives
Energy Access Energy Security Climate Change

15 Energy Demand and Supply Situation
68% India’s population in rural areas. Increased population- Increased energy consumption Commercial energy supply- Dependant on fossil fuels. Renewable sources- Underutilized. Energy sector dominated by Public sec tor.

16 Energy Mix Coal Renewable Energy Petroleum Power

17 Coal Energy Major source of energy in India.
– Estimated reserves – billion. 40% of electricity worldwide is produced using coal. India is third largest producer of coal. It is the most controlled sector as 90% is in the hands of public company. 1. CIL 2. SCCL

18 Initiatives of Government for Coal Sector
The Coal Mines ( Nationalization) Act, 1973. Colliery Control Order 2000. New Coal Distribution Policy 2007.

19 Challenges Poor Quality. Opencast Mining. Poor Infrastructure.
Poor Technology Monopolistic Nature.

20 Renewable Energy It is energy obtained from resources that are indigenous and inexhaustible. Example –wind power, solar power, Geothermal energy , tidal power and Hydroelectric power. It can be created without release of harmful pollutants. India has abundance opportunities for using solar, wind and small hydro resources to produce Energy. India has land suitable to produce Bio Mass energy. These energy resources also helps in reducing Global threats of Climate change. It will reduce country`s dependency on fossil fuels. Renewable resources are Diffused and Decentralised which helps to satisfy energy needs of rural people and it will also crate job opportunities.

21 Share of Different Sources in Total World Renewable Energy Consumption
SHARE OF RENEWABLE ENERGY CONSUMPTION IN TOTAL ENERGY CONSUMTION 16.7% Share of different sources in Total Renewable Energy Share% Biomass Heat 11.44 Solar Hot water 0.17 Geothermal Heat 0.12 Hydro power 3.34 Ethanol 0.50 Bio Diesel Biomass Electricity 0.28 Wind power 0.51 Geothermal Electricity 0.07 Solar PV Power 0.06 Solar CSP 0.002 Ocean power 0.001

22 Core Drivers 1.Energy Security 2.Elecricity Shortages. 3.Energy Access 4.Climate change 5.Progress in India

23 Growth of Renewable Power Generating Capacity (Cumulative Capacity in MW)
Sector Beginning of X Plan (April 2002) Beginning of Xi Plan (April 2007) Begining of Xii Plan (April 2012) Wind 1628 7092 17352 Small Hydro 1434 1976 3395 Bio Power 389 1184 3225 Solar 2 3 941 Total 3453 10255 24914

24 Government Initiatives
Renewable energy has been an important component of India`s Energy planning Process since Quite some time .The importance of renewable energy sources in the transition to a sustainable Base was recognized in the early 1970`s. Setting up of Commission for Additional Sources of Energy (CASE) Department of Non-Conventional Energy Sources(1982) Indian Renewable Energy Development Agency (IREDA) Ministry of Non –Conventional Energy Sources Ministry of New and Renewable Energy (MNRE) The National Solar Mission.

25 Setting up of Commission for Additional Sources of Energy(CASE)
The two oil shocks in 1970 led to the establishment of CASE in Department of Science and Technology in March 1981. This commission was charged with responsibility of Policy formulation and their implementation programme for development of new and Renewable energy It also helps in coordinating and intensifying Research and Development in the sector.

26 Department of Non-Conventional Energy Sources (DNES)
In 1982 a new Department was created in the Ministry of Energy . It incorporated CASE.

27 Indian Renewable Energy Development Agency (IREDA)
This was crated in 1987 to finance renewable energy projects.

28 Ministry of Non-Conventional Energy Resources
In 1982 DNES become Ministry of Non-Conventional energy resources In october2006 this Ministry was Rechristened as the Ministry of New and Renewable energy KEY OBJECTIVES;- promotion of deployment of Grid –interactive renewable power generation projects. Promoting energy initiatives for:- Meeting energy needs of rural people Supplementing energy needs in urban areas industry and commercial establishments. Research design and development

29 Functions:- Encourage development of a Robust manufacturing Industry.
Policy and regulatory framework Fiscal and financial incentives Human Resource Development Fostering International Cooperation Information , Publicity and Public Awareness Supporting Research and Development Undertaking resource assessment and Potential estimation Other special Incentives.

30 The National Solar Mission
Aims to promote the development and use of solar energy for power Generation . OBJECTIVE:- To reduce the cost of solar power generation through:- Large scale deployment goals Aggressive R and D Domestic production of Critical Raw material , components and equipments Schemes:- Scheme for setting up of over 300 MW of Grid connected Solar PV power projects by Defence Establishments Scheme for setting up 1000MW of Grid Connected solar PV power projects Scheme for setting up of solar parks and ultra mega solar power projects

31 Grid connected solar PV power projects
Pilot-cum –demonstration project for development of grid connected PV power plants

32 Incentives offered by Govt. Of India
For development of Solar Energy Sector:- Exemption from Excise duties and concession on import duty. A 10 year tax holiday Wheeling ,banking and third party sales , buyback facility by states Guaranteed market GBI schemes for small solar projects Reduced wheeling charges Special incentives for exports from INDIA Loans at concessional rates For Biomass Power Projects:- 80% claim of depreciation in the first year A 10 year income tax holiday

33 For Small Hydro Power Projects:-
Concession on custom duty and exemption from Excise duty Exemption from sales tax Financial incentives from IREDA For Small Hydro Power Projects:- Preferential Tarrifs Financial incentives Subsidy to upgrade watermills Custom duty concessions A 10 year tax holiday

34 Challenges Land Acquisition Water shortage

35 POWER Power is the main input in all the Economic activities be it Agriculture , Industry or other commercial Business and is equally important for Domestic Lighting India`s power sector is experiencing the Growth Power is the main source of energy and GOI is making many efforts to improve this sector POWER SECTOR OUTLAYS (crores) PLAN PLAN OUTLAY ACTUAL EXPENDITURE % Eight plan 79589 76677 96.3% Ninth Plan 124225 114008 91.8% Tenth Plan 205021 182380 88.9% Eleventh Plan 473745 388531 82.0% Twelfh Plan 960425 N.A. -

36 Sources of Power in India :-
Thermal power Hydro power Renewable sources Nuclear power INSTALLED GENERATION CAPACITY (MW) FROM TO YEAR TOTAL CAPACITY THERMAL HYDRO RENEWABLES NUCLEAR 132329 86015 34654 7761 3900 143061 91907 35909 11125 4120 147965 93725 36878 13242 159398 102454 36863 15521 4560 173626 112824 37567 18455 4780 199877 131603 38990 24503 223343 151530 39491 27542

37 Within the Thermal sector coal has been a dominant fuel which account for about 85%OF THERMAL POWER capacity share of diesel is approx. 0.8% and gas been approx. 13% INSTALLED THERMAL GENERATION CAPACITY (MW) from to YEAR total Coal (steam) Gas Diesel 86015 71121 13692 1202 91907 76019 14686 93725 77649 14877 1200 102454 84198 17056 112824 93918 17681 1225 131603 112022 18381 151530 130221 20110

38 Generation of Power in India
Source wise share in Total Generation in and sector Hydro 113502(17%) 130511(14%) Steam 461794(69%) 612497(66%) Diesel 2539(0.4%) 2649(0.3%) Gas 64157(10%) 93281(10%) Nuclear 18802(3%) 32287(4%) Renewable 9860(1%) 51226(6%)

39 Initiatives by Govt. 1.Electricity (supply) Act ,1948 :- To facilitate faster development of power Sector and State Electricity Boards are set up at level to ensure systematic growth of Power supply industry across the country . It was set up to rationalise production and supply of electricity and taking measures conducive to electrical development.

40 2. Private Power Policy 1991 : Under this policy private companies were allowed to invest in:- thermal projects Hydro projects Wind and solar projects Foreign Investors were allowed to invest in projects with 100% ownership with Govt. Approval.

41 3.Liquid Fuel Policy , 1995 :- under this Policy Private Players were Permitted to set up power projects using fuels like Naphtha and Fuel oil Focus was to encourage the use of liquid fuel in power plants.

42 4.Policy for Renovation and Modernisation of Existing Plants 1995:-
This policy was set up in order to modernise the Existing plants both through Public and private investment , and for modernisation purpose funds were also raised through traditional funding like from financial institution and external agency. The ownership of the renovated plant remained with SEBs

43 5.The Electricity Regulatory Commission Act,1998 :-
this act focused on the establishment of Central Electricity regulatory commission at central level and State Electricity Regulatory Commission at state level. Commission has the power to determine and ratinalisation of tariffs subsidies etc.

44 6.Hydro Power Policy ,1998 :- the aim was to accelerate the development of Hydropower. Idea was to set up vast Electric potential at faster pace with supportive policies from the Govt. Aimed at promotion of small and mini hydro projects for remote areas Strengthening the role of PSUs and SEBs in taking new hydro projects.

45 7.Mega power policy ,1998:- its focus was on the development of projects with capacity of 1000 MW and more ,which cater to the power needs of more than one state. These projects are known as mega power projects Projects were awarded through competitive bidding This policy was revised in 1998 and after that it offer some fiscal incentives as well Due to which it create interest in private players to enter into mega projects so to avail different benefits .

46 8.The Energy Conservation Act,2001 :-
It was passed to enforce measures relating to energy conservation :- Energy consumption standards Direct mandatory display of label Prohibit manufacture ,sale , purchase of notified equipment and appliances not conforming to energy consumption Standards Notifying designated consumers Establishing norms and standards for designated consumers.

47 9.The Energy Conservation (Amendment) Act,2010:-
The Central govt. May issue certificate to those Designated Consumers whose energy consumption is less than the prescribed norms and standards. The Designated consumers whose energy consumption is more than prescribed norms and standards shall be entitled to purchase the Energy Saving Certificate Prescribe the value of per metric ton of oil equivalent of enrgy consumed.

48 The main features of the act are as follows:-
10. The Electricity Act , 2003 :- The main features of the act are as follows:- De-licensing of generation and permitted the captive generation without restriction. Its also provides for the transmission , distribution and trading in electricity with a license. The act empowered central Govt. To make region-wise demarcation of the country The state govt. Required to unbundle State Electricity board Setting up State Electricity Regulatory Commission made mandatory An appellate tribunal to hear appeals against the decision of CERCs and SERCs Metering of electricity supplied made mandatory Provisions related to theft of electricity become more stringent.

49 Initiatives for Rural Electrification
1.Rural electrification under Minimum Needs Program (MNP): It was started in 5th five year plan . Under this funds were provided as Central assistance to the states in the form of partly grants and partly loans. 2. Kutir Jyoti Scheme : it was launched in to provide single point light connections to households of rural families below the poverty line. 3.Pradhan Mantri Gramodaya Yojana (PMGY) :- it was implemented in Under this funds were provided to the states as Additional Central Assistance.

50 4.Accelerated Rural Electrification Programme (AREP):
it was launched in the year Under this interest subsidy of 4% was to be provided on loans availed by State Governments / power Utilities from Financial institutions for carrying out rural electrification program. 5.Accelrated Electrification of One Lakh Villages and One crore households:- it was launched in Under this there was a provision for providing 40% capital subsidy for rural electrification projects and the balance as loan assistance on soft terms. 6.Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY):- I was launched in April 2005 to provide Access to electricity to all rural households plus rural electricity infrastructure . It also focused on providing a free electricity connection for all the BPL households.

51 Issues faced by Power Sector
1.Shortage of fuel 2.Delays in Clearances 3.Regional concentration of power Generation 4.Low operational Efficiency 5.Lack of Private Investment 6.Low tariffs

52 GROWTH OF TELECOMMUNICATIONS SECTOR IN INDIA

53

54 TELECOMMUNICATION : exchange of information using electronic means

55 India has the second largest telecom network in the world .
This sector has grown at around 45 % per year since Intense competition in this sector due to the entry of new players and expansion by existing players .

56 GROWTH OF TELECOMMUNICATION SECTOR
Origin of Indian telecom sector can be traced back to 165 years . First operational land lines were laid by the government near Kolkata { Calcutta}.

57 In 1947 , after India gained independence , telecom companies were nationalised .
Indian telecom sector was entirely under the Government . In 1984, private sector was given an entry into this sector but only in manufacturing equipments.

58 The actual evolution occurred when the Government seperated the Department of Post and Telegraph in 1985 by setting up Department of Posts and the Department of Telecommunications.

59 GOVERNMENT INITIATIVES
National Telecom Policy 1994

60 NATIONAL TELECOM POLICY
Was brought into existance to provide world class services to people. For increasing the availability of landlines to the people. To make telecommunication services cost effective .

61 KEY CHALLENGES Increasing consumer base Unclear regulatory environment
Excessive competition Spectrum availability Creation of telecom infrastructure

62 Presentation on Infrastructure growth in transport sector
Submitted to : Submittedby Dr. Dr. Nisha Aggarwal Divya joshi

63 Introduction Transport sector is important:
1 To facilitate agriculture and industry. 2 for overall development of economy. 3 for movement of men, material and machines. 4 significant contribution to GDP

64 Types of transport

65 Road transport Principal means of transport
It is the oldest means of transport It helps in developing the other means of transport

66 Road transport in India
India has the second largest road network in the world National highways account for 1.7 % Of total network in India Double-lane highways constitutes the largest share of highways in India(40,658 km) As of April 2015, India has completed and placed in use over 24000, kilometers of recently built 4or6 lane highways

67 Merits of road transport
Less capital outlay (cost of constructing, operating and maintaining roads) Door to door service (warehouse to warehouse) Service in rural areas Flexible service (alternative ways, if an y road is blocked) Suitable for short distance Lesser risk of damage in transit Saving in packing cost Rapid speed Personal services(people have their own vehicles)

68 Private owned vehicles (businessmen)
Suitable for perishable goods Provides employment Feeder to other modes of transport

69 Demerits of road transport
Unsuitable for long distances Not suitable for heavy goods Irregularity (time is not fixed) Risky No uniformity in fairs Seasonal nature Slow speed Lack of organisation(irregular, different fair prices, seasonal nature) Environmental concerns

70 Issues in Indian transport
Inadequate infrastructure -majority roads are two-lane -less flyovers, underpasses, bypasses, bridges etc. - inadequate availability of alternative modes

71 LANE A division of a road marked off with painted lines and intended to separate single lines of traffic according to speed or direction

72 Indian highways American HIGHWAYS

73 Poor quality of roads -unsurfaced (42.65%)
- deficiencies in national highways i.e. inadequate capacity etc. -

74 Overloading -no check on overloading of vehicles
- overloading is permitted by issue of special token

75 Lack of trained manpower
-lack of trained drivers - easy availability of licences

76 Lack of adequate parking space

77 Mixed Traffic

78 Multiple check-posts - causes abnormal delays - no uniformity in rates of road taxes

79 Lack of way side amenities
Lack of private participation Lack of uniformity Roadside encroachment

80 Higher fuel cost Increased number of road accidents Polluting vehicles and fuels
-

81 RAIL TRANSPORT IN INDIA

82 Worlds largest passenger carrier
Network spans more than 64,600 kms. 3rd largest in world Passenger traffic witnessed a CAGR of 5.2% during Freight traffic registered a marginally lower CAGR of 4.9% in same period. Sector runs trains, carrying over 23 Million passengers daily connecting 7172 stations 7421 freight trains are run carrying about 3 million tonnes of freight every day

83 MERITS OF RAILWAYS BETTER ORGANISED DEPENDABLE
CHEAPER MODE OF TRANSPORT IMPETUS TO AGRICULTURE DEVELOPMENT GROWTH OF MARKETS & SPECIALISATION

84 FLEXIBLE IN TERMS OF CARRYING CAPACITY
CHECK ON THE FLUCTUATIONS OF PRICES MOST HELPFUL IN CALAMITIES ENCOURAGEMENT TO TOURISM EMPLOYMENT

85 STRATEGIC IMPORTANCE STRONG ENVIRONMENTAL FOCUS PUBLIC WELFARE SAFETY

86 DEMERITS OF RAILWAYS HUGE CAPITAL OUTLAY INFLEXIBLE ROUTES
LACK OF DOOR TO DOOR SERVICE UNSUITABLE FOR SHORT DISTANCE & SMALL LOADS MONOPOLY

87 NO RURAL SERVICES BOOKING FORMALITIES UNSAFE FOR FRAGILE ITEMS UNDER-UTILISED CAPACITY

88 ISSUES AND CHALLENGES INADEQUATE INFRASTRUCTURE UNDER INVESTMENT
POOR SERVICE QUALITY UNMANNED LEVEL CROSSINGS CLEANLINESS AND CATERING LAW & ORDER PROBLEMS STIFF COMPETITION

89 LOW PRIVATE SECTOR PARTICIPATION
LOW OPERATING EFFICIENCY SOCIAL BURDEN LAND ACQUISITION &CLEARANCES ISSUES NON- AVAILABILITY OF SEPARATE PASSENGER &FREIGHT LINES UNAUTHORISED VENDERS HIGH TARIFF RATES LIMITED NON-CORE BUSINESS

90 Allocation in union budget 2014-15
Urban metro projects- Rs.100 crore for Lucknow &Ahmadabad Light rail systems in PPP mode- funding by VGF(VIABILITY GAP FUNDING) Diamond quadrilateral project of high speed trains High speed bullet trains- Mumbai- Ahemdabad route Freight corridors proposed on eastern and western corridors.

91 Rail- road competition and co-ordination
Causes of competition: Flexibility of time table to suit individual requirements Provision for door to door services No booking hassels Lower operational costs Freedom of movement due to availability of multiple routes Suitability for short distance Unlike railways no social welfare obligations etc..

92 2. Need for co-ordination:
To relieve severe traffic To control increasing pollution To check accidents Limits & constraints to expansion of existing road network Ensure better returns on huge fixed investment Check on wastage All-round development

93 Measures adopted for co-ordination:
MITCHEL KIRKNESS COMMITTEE RAIL-ROAD CONFERENCE-1933 TRANSPORT ADVISORY COUNCIL-1935 MOTOR VEHICLE ACT,1939 COMMITTEE ON TRANSPORT POLICY AND CO-ORDINATION-1959 NATIONAL TRANSPORT POLICY COMMITTEE-1980 THE STEERING COMMITTEE ON PERSPECTIVE PLANNING FOR TRANSPORT DEVELOPMENT-1988 TRANSPORT POLICY DEVELOPMENT COMMITTEE-2010

94 It is very useful for long distances and saves time.
AIR TRANSPORT IN INDIA The mobility of men and material by air is called air transport. It is the fastest means of transport. It is very useful for long distances and saves time. The parliament passed the Air Transport Corporation Act in 1953 under which the Indian Airlines Corporation was to run domestic services and Air India is to run external services

95

96 Advantages of air transport
Comfortable and quick Services Lesser Infrastructure Investment High speed Short and Direct Route Easy Access Emergency Services

97 Most Suitable For Carrying high value but light goods
Promotes International Trade Promotes Tourism

98 Demerits of Air Transport
Very Costly Small Carrying Capacity Uncertain and Unreliable Breakdowns and Accidents/Risky Large Investment Specialised Skill Unsuitable for Cheap and Bulky Goods Legal Restrictions

99 ISSUES IN AIR TRANSPORT
Higher Fuel Cost than International Bench Marks Higher Level of Taxes Non availability of skilled personnel Poor Intermodel Connectivity Price sensitive market High and growing debt burden

100 India has too few airports
Infrastructure Poor Aircraft Utilization Barriers to Entry

101 WATER TRANSPORT Water transport is one of the oldest means of transport in India Over the years, there has been a considerable improvement in the construction, design, motive power, speed, safety, etc. Small cost is involved in the construction and maintenance of waterways.

102

103

104 MERITS OF WATER TRANSPORT
Lesser Infrastructure Investment Cheap Mode Low operational cost Larger capacity Flexible service Suitable for heavy cargo Safe

105 Fuel Efficient Environment Friendly Useful during natural calamities Helpful in Defence Low Risk of Damage in Transit Generates Employment

106 DEMERITS OF WATER TRANSPORT
Slow Speed Affected by seasonal weather conditions Limited Area of operation Unreliable Risky Unsuitable for Perishable Goods Specialized Skill Legal Restrictions Affects Flora and Fauna

107 ISSUES IN WATER TRANSPORT
High Operational Cost Lack of Comprehensive Strategy Poor Port Governance Poor Rail Road Connectivity Financial Constraints Poor Incentives High Cost of Fuel

108 Working age of ships Low Productivity Dual Governance

109 THANK YOU


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