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Infrastructure in india. Features Challenges Future. Dr. Raj Agrawal. WHAT IS INFRASTRUCTURE ?. Physical structures and networks used to provide essential services to a society. Backbone of an economy. Two categories: Economic infrastructure Social infrastructure. WHY INFRASTRUCTURE?. - PowerPoint PPT Presentation
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FeaturesChallenges
FutureDr. 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
11th Five Year Plan (2007-2012) 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 2012.
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