 Features  Challenges  Future Dr. Raj Agrawal

 Physical structures and networks used to provide essential services to a society.  Backbone of an economy. Two categories: (a) Economic infrastructure (b) Social infrastructure

 Huge need for investment  Investment in infrastructure drives growth  Urgent need for private capital  Transport & telecommunication command special interest  Welfare of the society

 ECONOMIC INFRASTRUCTURE  SOCIAL INFRASTRUCTURE

 Transport, Toll roads, Bridges, Tunnels, Seaports, Airports, Railways  Energy & Utility, Gas distribution storage, Water treatment, Electricity generation  Communication, Satellites, Cable networks

 Healthcare facilities  Education facilities  Social housing  Judicial facilities  Incidence Of Poverty

 Power  Irrigation  Drinking Water  Roadways  Railways  Aviation  Telecommunication

 Approval limit relaxed  Tax incentives to Financers, Operators, Capital market investors  Institutional initiatives (IDFC, ADB)  ECB’s for Infrastructure  Promotion of private investments  Inviting foreign investors

 Definition  Eligibility  Government support  Approval of project proposals  Procurement process for PPP projects  Appraisal & monitoring by lead financial institutions

 PPPs in India are at a nascent stage  Slew of measures by government  100% foreign investment allowed in infra sectors  Regulatory institutions (Telecom Regulatory Authority, Port Tariff Authority)  PPPs in India are accelerating  118 projects valued at $13.4 billion are progressing in roads, ports, airport sectors

 World Economic Forum has noted that India’s annual investments in infrastructure between 1998 and 2005 averaged 4% of GDP compared to 8.2% for China  Government of India is addressing the infrastructure requirements  11 th Five Year Plan ( ) calls for more than doubling the financial outlay for infrastructure

 Total financing requirements  $492 billion in the next five years  Of this, $147 billion to come from private investment  Share of private investment in total to rise from 17% to 30% by  Investment to touch $1.48 trillion by 2017

 India growth story likely to continue  Strong economic growth will fuel further demand on infrastructure  India should absorb the large investments in infrastructure sector to sustain growth momentum.

 Investment requirements of infrastructure sector huge  India growth story to continue  50% of the population is below 25 years  Huge domestic demand  Need to bridge infrastructure gaps to sustain economic growth  Opportunities for international investors significant  India can leverage on its vast human capital to successfully adopt the PPP model