Transcript Infrastructure in india

Features
Challenges
Future
Dr. Raj Agrawal
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Physical structures and networks used to
provide essential services to a society.
Backbone of an economy.
Two categories:
(a) Economic infrastructure
(b) Social infrastructure
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Huge need for investment
Investment in infrastructure drives growth
Urgent need for private capital
Transport & telecommunication command
special interest
Welfare of the society
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ECONOMIC INFRASTRUCTURE
SOCIAL INFRASTRUCTURE
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Transport, Toll roads, Bridges, Tunnels,
Seaports, Airports, Railways
Energy & Utility, Gas distribution storage,
Water treatment, Electricity generation
Communication, Satellites, Cable networks
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Healthcare facilities
Education facilities
Social housing
Judicial facilities
Incidence Of Poverty
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Power
Irrigation
Drinking Water
Roadways
Railways
Aviation
Telecommunication
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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
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Definition
Eligibility
Government support
Approval of project proposals
Procurement process for PPP projects
Appraisal & monitoring by lead financial
institutions
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PPPs in India are at a nascent stage
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Slew of measures by government
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100% foreign investment allowed in infra sectors
Regulatory institutions (Telecom Regulatory Authority,
Port Tariff Authority)
PPPs in India are accelerating
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118 projects valued at $13.4 billion are progressing in
roads, ports, airport sectors
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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
11th Five Year Plan (2007-2012) calls for more than
doubling the financial outlay for infrastructure
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Total financing requirements
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$492 billion in the next five years
 Of this, $147 billion to come from private investment
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Share of private investment in total to rise from
17% to 30% by 2012.
Investment to touch $1.48 trillion by 2017
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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.
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Investment requirements of infrastructure sector
huge
India growth story to continue
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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