Infrastructure in Indian Economy - dcomm.org
Transcript of Infrastructure in Indian Economy - dcomm.org
Infrastructure in Indian Economy
One of the major requirements for sustainable and inclusive
economic growth is an extensive and efficient infrastructure network.
It is critical for the effective functioning of the economy and industry.
The key to global competitiveness of the Indian economy lies in
building a high class infrastructure. To accelerate the pace of
infrastructure development and reduce the infrastructure deficit, the
Government has initiated a host of projects and schemes to upgrade
physical infrastructure in all crucial sectors.
Despite several challenges, the positive results of the
Government’s initiatives are showing in some sectors. However,
required capacity addition in a time-bound manner needs focused
attention in other sectors.
Prof.B.T. Chavan & A.S. Bhanji
Infrastructure and economic development
• Infrastructure refers to the fundamental facilities and systems
serving a country, city, or area, including the services and facilities
necessary for its economy to function.
• It is typically characterizes technical structures such as roads,
bridges, tunnels, water supply, sewers, electrical grids,
telecommunications, and so forth, and can be defined as;
"the physical components of interrelated systems providing
commodities and services essential to enable, sustain, or enhance
societal living conditions.“
• Infrastructural facilities are referred as economic and social
overheads.
Prof.B.T. Chavan & A.S. Bhanji
Infrastructure and economic development
• Primary Industry requires: Irrigation, Power supply, Strong
credit system and Transportation etc.
• Secondary Industry requires: Power supply, strong credit
system, Transportation, Communication, Water, Insurance,
Equipments, man power etc.
• Tertiary Industry requires: Power supply, Strong credit
system, Communication, Insurance, supply chain etc.
Prof.B.T. Chavan & A.S. Bhanji
Why Strong Infrastructural Facilities?
• Infrastructure increases agricultural production and productivity
• It accelerates industrial growth
• It increases the flow of foreign capital
• It generates employment opportunities
• It contributes to tourism development
• It contributes domestic market development
• Contributes to development of backward regions
• It is a instrument of social change
• For rapid industrialization & urbanization
• Easy movement of people and bringing them in contact with each other
Prof.B.T. Chavan & A.S. Bhanji
Sources of Energy
I) Conventional (Non-Renewable)
A) Commercial
1) Coal
2) Petroleum (Oil & Gas)
3) Electric Power
i) Hydro Power
ii) Nuclear Energy
iii) Thermal Power
A) Non-Commercial
1) Fire wood
2) Agricultural & vegetable wastage
II) Non-Conventional
(Renewable)
1) Wind Energy
2) Solar Energy
3) Tidal Energy
Prof.B.T. Chavan & A.S. Bhanji
Plan wise and Sector wise Expenditure on
Infrastructure
Prof.B.T. Chavan & A.S. Bhanji
GDP Growth and Growth in Infrastructure
Spending
Prof.B.T. Chavan & A.S. Bhanji
Power & Energy Infrastructure
• Power and Energy plays an important role in the economic
development of each and every country.
• It includes; Coal, Petro-chemical, Gas, Electricity, Solar, Wind energy
etc.
• 6% increase in GDP would contribute to 9% increase in energy demand
• Energy intensity is energy consumption per unit of GDP
• India’s energy intensity is 3.7 times of Japan, 1.55 times of USA, 1.47 times of Asia and 1.5 times the world average
Prof.B.T. Chavan & A.S. Bhanji
Thermal, Nuclear and Hydro
• Installed capacity of power plants in India till 31st March, 2011 was around 173 GW of which
• Thermal contribution is about 65%
• Nuclear provides 2.8% of electricity generated
• Hydro contribution is about 21.6%
(Exploitable potential 60% at 84000 MW)
• Renewables –10.6%
Prof.B.T. Chavan & A.S. Bhanji
ALL INDIA INSTALLED GENERATION
CAPACITY Central
Sector:
54412 MW
State Sector: 82452 MW
Private
Sector:
36761 MW
All India:
173625 MW
As on 31st
March,2011
Prof.B.T. Chavan & A.S. Bhanji
TOTAL INSTALLED CAPACITY – 173,624 MW
(as on 31.03.2011)
Prof.B.T. Chavan & A.S. Bhanji
Growth of India’s Power Sector
serious growth after the 60s
Prof.B.T. Chavan & A.S. Bhanji
Industry wise consumption of Energy
Sr. No. Area 1950-51 1970-71 2008-09
1) Industry 63 68 37
2) Agriculture 4 10 20
3) Commercial 13 10 15
4) Domestic 13 9 25
5) Railway 7 3 3
Economic Survey - 2010
0
10
20
30
40
50
60
70
Industry Agriculture Commercial Domestic Railway
63
4
13 13
7
68
10 10 9
3
37
20 15
25
3
1950-51 1970-71 2008-09
Prof.B.T. Chavan & A.S. Bhanji
Per Capita Energy Consumption
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
US
A
Chin
a
Russia
n F
edera
tion
Japan
India
Germ
any
Canada
Fra
nce
United K
ingdom
South
Kore
a
World A
vera
ge
Low per capita energy consumption
Prof.B.T. Chavan & A.S. Bhanji
Energy Crisis & Measures
Crisis
• Excess Demand for the consumption
• Oil prices and inflationary pressures
• Growing oil imports
• Transmission and distribution losses (23% Theft & Transmission loss)
• Operational inefficiency
• Inadequate electrification (19% Villages are not electrified)
• Problem in electricity generation (Funds & Social Problems)
Measures
• Setting up of oil production (in Country and offshore)
• Control over the consumption of petrol
• Improvement in the generation of power
• Encouragement for the use of non-conventional & Renewable energy sources
• Encouragement to private sector
• Control on transmission and distribution losses
• Ultra mega power plants
• Conservation of energy
Prof.B.T. Chavan & A.S. Bhanji
Transport System In India
• Transportation is the movement of people, animals and goods from one
location to another. Transport is important because it enables trade between
persons, which is essential for the development of civilizations.
• Transportation creates place utility and helps in disbursement of all
resources
• Annual growth is projected at over 12% for passenger traffic and over 15%
for cargo traffic.
Sources of Transportation
Road Transport
Rail Transport
Air Transport
Water Transport
Prof.B.T. Chavan & A.S. Bhanji
Traditional Means of
Transportation
Prof.B.T. Chavan & A.S. Bhanji
Modern Means of
Transportation
Prof.B.T. Chavan & A.S. Bhanji
Railways
Indian Railways is one of the largest railways
under single management.
It carries some 18 million passengers and 2
million tons of freight a day and is one of the
world’s largest employer.
The railways play a leading role in carrying
passengers and cargo across India's vast
territory. Prof.B.T. Chavan & A.S. Bhanji
The trains were introduced by the British in
1853.
The Indian railways improved a lot from then
on to become the one of the longest railway
networks in the world.
There are 16 railway zones in India.
There are almost 8000 railway stations in the
country.
Prof.B.T. Chavan & A.S. Bhanji
The total route length of the railway network is
64,061 km (39,806 mi).
About 46% of the railway route is electrified.
The Indian railways uses 4 gauges: broad
gauge, standard gauge, meter gauge, narrow
gauge.
Prof.B.T. Chavan & A.S. Bhanji
Prof.B.T. Chavan & A.S. Bhanji
Road transport…
Roads are the dominant mode of transportation in India
today.
They carry almost 90 percent of the country’s passenger traffic and 65 percent of its freight.
National Highways Development Authority of India was
constituted in 1988
It is responsible for the development , maintenance and
management of National Highways
It is currently undertaking developmental activities under
(National Highways Development Project)
Prof.B.T. Chavan & A.S. Bhanji
Type of Road Length
Expressways 200 km (120 mi)
National Highways 66,590 km (41,380 mi)
State Highways 131,899 km (81,958 mi)
Major District Roads 467,763 km (290,654 mi)
Rural and Other Roads 2,650,000 km (1,650,000 mi)
Total Length 3,300,000 km (2,050,000 mi)
(Approx)
Statistics….
Prof.B.T. Chavan & A.S. Bhanji
Mumbai Pune Expressway
Prof.B.T. Chavan & A.S. Bhanji
A view of Delhi- Gurgaon stretch of National Highway - 8 (NH-8).
The 8-lane expressway connects Delhi to Gurgaon and IGIA
Prof.B.T. Chavan & A.S. Bhanji
AGRA -MATHURA
Air transportation…
Air transport in India started between Allahabad & Naini (township in
Allahabad) in 1911
Airport authority of India was established on April 1, 1995
The Air India, has become the 16th largest airline in Asia, presently
operates a fleet of 159 aircraft serves 50 domestic & 39 international
routes
The other airlines such as Kingfisher Airlines, Air India and Jet Airways
are the most popular brands in domestic air travel in order of their market
share.
Prof.B.T. Chavan & A.S. Bhanji
Prof.B.T. Chavan & A.S. Bhanji
Airport Authority Of India
Prof.B.T. Chavan & A.S. Bhanji
Cargo airlines :Blue Dart Aviation ltd is
Operating scheduled cargo services in
the country Prof.B.T. Chavan & A.S. Bhanji
PAWAN HANS
Prof.B.T. Chavan & A.S. Bhanji
Advantages
It is the fastest mode of transport.
It is very useful in transporting goods and passengers to the
area, which are not accessible by any other means.
It is the most convenient mode of transport during natural
calamities.
It provides vital support to the national security and defence
Prof.B.T. Chavan & A.S. Bhanji
• Disadvantages:
• It is relatively more expensive mode of transport.
• It is not suitable for transporting heavy and bulky goods.
• It is affected by adverse weather conditions.
• It is not suitable for short distance travel.
• In case of accidents, it results in heavy losses of goods,
property and life.
Prof.B.T. Chavan & A.S. Bhanji
Water transport…
Prof.B.T. Chavan & A.S. Bhanji
Types of water transport….
Inland water transport: include rivers, canals , backwaters & creek (a small stream · Creek (tidal), an inlet of the sea) that allows ships & boats to navigate
India has
Navigable waterways :around 14,500 km
Navigable by mechanized flat bottom vessels
….rivers ….canals
Prof.B.T. Chavan & A.S. Bhanji
IWAI
Inland waterways authority of India is the
authority in charge of the inland waterways
• Cargo transportation is organized
GOA
KERALA
WEST BENGAL
ASSAM Prof.B.T. Chavan & A.S. Bhanji
Prof.B.T. Chavan & A.S. Bhanji
Disadvantages(Constraints….)
Prof.B.T. Chavan & A.S. Bhanji
Composition of Indian transportation with GDP
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05
3,8 3,9 3,9
4,1
4,3
4,5
1,1 1,1 1,1 1,1 1,1 1,1
0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2
Road Rail Water Air
Prof.B.T. Chavan & A.S. Bhanji
Average Annual Growth (%) in Transport Sector GDP
(2004-05 / 2000-01)
Rail 15%
Road 24%
Water 18%
Air 20%
Other 23%
Prof.B.T. Chavan & A.S. Bhanji
Problems of transport Development in India
• Transport Bottlenecks (Constraints)
• Poor Planning
• Financial Problem
• Technological Upgradation
• Rail and Road Co-ordination
• Operational Constraints
• Inadequacy
Prof.B.T. Chavan & A.S. Bhanji
Communication in Indian Economic Growth
and Development
• Communication is an important part of economic development. It
facilitates exchange of commercial activities and integrates the
nation economically and socially.
• Communication means transmission of information for the
development of industry, trade, commerce in the country.
• Communication system comprises
Post and Telegraph services
Telecommunication system
Broadcasting
Television and Information services
E-communication Prof.B.T. Chavan & A.S. Bhanji
Postal and Telegraph
services • It is the largest network in the world
• Its main task is to deliver letter and money order
• Since from 1837 the Indian postal service system is working.
• Today we have 1.55 lakhs post offices, out of that 1.4 lakhs are in the rural area.
• The postal services have also introduced speed post service, E-mail and E-money
and E-bill
• Other services like saving bank certificates, postal life and non-life insurance and
mutual fund has been started.
• The no. of telegraph offices have been increased from 8200 to over 30000 since
1951
• The services provided by Telegraph are Phonogram service, Telex Service and
Direct trunk Dialing etc. Prof.B.T. Chavan & A.S. Bhanji
Telecommunication
• At the time of independence, India had total of only 321 telephone
exchange with about 8200 working connections.
• By March 2011 India had more than 826 million connection.
• 5.6 lakhs villages are connected by using Village Public Telephone. Hence
90% villages have been connected with this method.
• There has been growth in the telecommunication sector after 1995. With the
establishment of BSNL and MTNL it is one of the largest communication
network in India with a capacity of 50 million working connections.
• There has been shift in the importance of communication with the
introduction of private sector and wireless telephony.
Prof.B.T. Chavan & A.S. Bhanji
Broad Band
• The internet connections have been increased from 0.01 million in 1995 to around
100 million in 2010.
• Broad Band subscriber have increased from 0.49 lakhs in Dec. 2004 to more than
10.7 million in Nov. 2010.
• Regulatory framework and functions are carried out by Telecomm Regulatory
Authority of India.
• New development in the field of telecommunication are 3G & 4G connections, Mobile
No. portability, etc
• FDI ceiling has been raised to 74% (EARLIER IT WAS 49%)
• E-marketing is possible due to internet only
• Amazon.com, Flipcart.com, Snapdeal.com are the examples of E-marketing which
have taken a momentum in the Indian market. Prof.B.T. Chavan & A.S. Bhanji
Television and Broadcasting
• Television in India is a huge industry which has thousands of programmes
in many languages.
• More than half of all Indian households own a television.
• As of 2012, the country has a collection of free and subscription services
over a variety of distribution media, like the CHERIAN channel, through
which there are over 823 channels of which 184 are pay channels.
• The regular daily transmission started in 1965 as a part of All India Radio.
• Television services were separated from radio in 1976.
• National telecasts were introduced in 1982. In the same year, colour TV
was introduced in the Indian market.
• This is the most important media for the advertisement in India or for that
matter in the world.
Prof.B.T. Chavan & A.S. Bhanji
Urban Infrastructure
• Urban Infrastructure plays very important role in the case of
healthy and well being of human development.
• Rapid organization and industrialization causes for growing
demand for utilities like electricity, transportation,
communication, water supply, sanitation and residential
facility, drainage etc.
• It is the prime responsibility of the local self government in co-
ordination with the state government to provide all the above
facilities.
• Government is providing drinking water to the 100%
population residing in the urban area and sanitation facility to
the 75% population.
Prof.B.T. Chavan & A.S. Bhanji
• Mostly financing is done by the state and central government and
remaining amount is collected from the urban people in the form of
different taxes. Still government needs support from the following
agencies.
• Life Insurance Corporation, The housing and Development
Corporation of India and The Infrastructure leasing and Financial
Services Ltd. Etc.
• Now many states in India inviting private sector participation in the
provision of infrastructure service on a more cost effective basis.
• e.g. contracting outwork, construction and maintenance of toilet,
water supply system, garbage collection and disposal, BOT etc.
Urban Infrastructure
Prof.B.T. Chavan & A.S. Bhanji
• The science and technology represents accumulations of knowledge
and refinement in tools over a last 200 years.
• Science and technology has helped to improve the quality of human
life in the economic and social progress.
• India’s First Prime Minister Mr. Javaharlal Neharu believed in the spread of scientific temper. As a result of his vision National
laboratories were established for basic and applied research.
• Indian Space Research Organization (ISRO)
• Council of Scientific and Industrial Research (CSIR)
• Department of Atomic Energy (DAE)
• Indian Council of Agriculture (ICA)
• Department of Electronics
• Department of Space Technology (DST)
Science and Technology
Prof.B.T. Chavan & A.S. Bhanji
• In 1958 the science policy resolution was adopted to provide
positive incentives for the development of utilization of science and
technology in nation building activities.
– The major aims of this policy are;
To foster, promote and sustain science and scientific aspects
To ensure an adequate supply of research scientists of higher quality
To encourage and initiate with all possible speed, programmes for the training of
scientific and technical personnel
To provide benefits of acquisition and application of scientific knowledge to the
people of the country
Science and Technology
Prof.B.T. Chavan & A.S. Bhanji
Present Status of science and Technology In India
• The Indian government has established large network of laboratories and
universities.
• Public and private sector organizations have established research and development
laboratories to meet their internal technological requirement.
• The rapid growth of engineering consultancy organizations to provide design and
consultancy services.
• India’s stock of technical manpower has been growing at the rate of about 9% per year for the last 20 years, and it is estimated about 2.5 million.
• After USA, India ranks second in the world as regard to qualified science and
technology manpower. But as compare to the population it is not satisfactory.
• The number of scientists and engineers per 10000 population in India is hardly 22
and 8, where as it is 83 and 43 in USA and 311 and 456 in Russia
• 6% manpower is engaged in research and experimental work in India, where as it is
14% in Russia and 32% in USA. Prof.B.T. Chavan & A.S. Bhanji
• Non utilization of available scientific and technical talent
(Unemployment among Scientific and technical manpower)
• Inadequate laboratory facilities
• Deficiency of science and technology infrastructure
Weaknesses about Science and Technology
Prof.B.T. Chavan & A.S. Bhanji
• Since independence, the government of India took serious efforts for the planned
development of infrastructure facility.
• The widening gap between demand and supply of infrastructure is the serious problem for
the economic growth of the country.
• Since 1991, Government of India adopted the strategy towards providing facilities as well
as creating environment for private sector participation in infrastructural development.
• The government has set up Infrastructure Development Finance Company in January
1997.
• The government has announced to a tax holder companies for developing, maintaining and
operating infrastructural facilities.
• The government has also permitted income tax exemption on dividend, interest and long
term capital gain earned by the companies and individuals for such development facilities.
• The government has enhanced tax rebate limits for investment in shares and debentures
in infrastructural development.
Private Investment in Infrastructure – Outlook & Prospects
Prof.B.T. Chavan & A.S. Bhanji
Wish you a Happy Diwali
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