Transcript Slide 1
National Seminar on India’s Economic Growth and
Environmental Sustenance
June 05, 2008
Infrastructure Development and Economic
Growth
Rajiv Kumar
ICRIER
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Overview of Indian Infrastructure
Total Telephone Subscribers per ‘000 Population
Note: Total telephone subscribers refer to the sum of main telephone lines and cellular mobile subscribers
Source: ITU
Electric power consumption
(kWh per capita)
Source: WDI and Economic Survey, India
Average Turn Round Time - All Major Ports
(In Days)
A study by Crisil Infrastructure reveals that the cost incurred on transporting commodities from ships
to factories in India accounts for 11 per cent of the cost of production. The global average is around
6 per cent. (Businessworld, June 2008)
Railways, goods transported
(million ton per km)
Definition: Goods transported by railway are the volume of goods transported by railway, measured in metric
tons times km traveled.
Source: WDI
Public-Private Share in Irrigation
Source : Statistical Abstract, 2005
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Infrastructure: Deficit
Roads
• 65,569 Km of NH comprise only 2% of network carry 40% of
traffic; 12% 4 - laned; 50% 2 – laned; and 38% single - laned
Ports
• Inadequate berths and rail / road connectivity
Airports
• Inadequate runways, aircraft handling capacity, parking space
and terminal building
Railways
• Old technology; saturated routes: slow speeds ( freight: 22
kmph; passengers: 50 kmps); low payload to tare ratio
POWER
• 11% Peaking deficit; 7 % energy shortage; 40 % transmission
and distribution losses; absence of competition
Irrigation
Telecom
• 1123 BCM Utilisable water resources; yet near crisis in per
capita water availability and storage; only 43% of net sown
area irrigated
• Only 22 % of market accessed; acute human resources shortage
Infrastructure
&
Economic Growth
Infrastructure Index 2004-05
Note: Infrastructure Index consists of four indicators are Teledensity, percapita Electricity Consumption, Road
density and Railways line density
Principal components analysis technique used to construct the index
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Relationship Between Per capita Income and Infrastructure Index
(2004-05)
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Relationship Between Poverty and Infrastructure Index
(2004-05)
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Development of Infrastructure
&
11th Plan
Projected Investment in Infrastructure in the 11th Plan
(as % of GDP)
Total Investment in the 11th Plan
Projected investment in Infrastructure during
11th Plan is US$ 494 Billion
Source: 11th five year plan
Sectors
Tenth Plan
Eleventh Plan
Anticipated
Projected
(US $ billion)
Electricity
71.2
150.4
Roads and Bridges
35.3
76.1
Telecommunication
30.1
65.1
Railways
29.2
62.9
Irrigation
27.2
54.4
Water Supply and Sanitation
15.8
48.6
Ports
1.0
18.0
Airports
1.7
8.5
Storage
1.2
5.5
Gas
2.1
5.0
214.8
494.4
Total
Projected Share of Private Investment to the Total Infrastructure Investment
in the 11th Plan
?
Source: 11th five year plan
Projected Investment: Source Wise
Note: IBER- Internal and External Budgetary Resources
Central Budget Expenditure on Infrastructure
(% to GDP)
2007-08
Communications
Transport
Energy
BE
0.05
0.58
0.17
RE
0.04
0.65
0.11
GOVERNANCE ISSUES: THE KEY
USER CHARGES: LACK OF FISCAL SPACE
INTER-GOVT CONFLICTS
INTER-MINISTERIAL ISSUES
PRIVATE VERSUS PUBLIC SECTOR CONFLICTS (BSNL AND MTNL VERSUS PVT TELECOM Cos)
POWER SECTOR REFORMS: INEFFECTIVE REGULATORS
INEFFECTIVE LOCAL GOVERNANCE
SOME SUGGESTIONS
FOCUS ON POWER SECTOR REFORMS AND IMPROVING RURAL TRANSPORT
CONNECTIVITY
INCENTIVES FOR OPEN ACCESS IMPLEMENTATION: NTPC POWER
SEGREGATE URBAN AND RURAL POWER SUPPLY
CAPACITY BUILDING FOR DESIGN AND EXECUTION SPECIALLY AT THE STATE
LEVELS: FOLLOW MP MODEL
INCREASE BORROWING FROM MDBs FOR INFRASTRUCTURE DEVELOPMENT
Thank you
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