BUDGET IMPACT ON INFRASTRUCTURE SECTOR IN INDIA

2014NES RATNAM COLLEGE OF ARTS,SCIENCE AND COMMERCESHIVBHUSHAN PANDEY , ARVIND MARRIAPAN KOLIAR, CHIRANJEW KANCHAN

[BUDGET IMPACT ON INFRASTRUCTURE SECTOR IN INDIA][Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.]

Introduction to infrastructure Infrastructurerefers to the basic physical andorganizationalstructures needed for the operation of asocietyorenterprise,or the services and facilities necessary for aneconomyto function. It can be generally defined as the set of interconnected structural elements that provide a framework supporting an entire structure of development. It is an important term for judging a country or region's development.The term typically refers to the technical structures that support a society, such asroads, bridges,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."

Origin of infrastructureThe word infrastructure has been used in English since at least 1927, originally meaning "The installations that form the basis for any operation or system"

The word is a combination of theLatinprefix "infra", meaning "below", and "structure". The military use of the term achieved currency in the United States after the formation ofNATOin the 1940s, and was then adopted byurban plannersin its modern civilian sense by 1970.

The term came to prominence in theUnited Statesin the 1980s following the publication ofAmerica in Ruins,which initiated a public-policy discussion of the nations "infrastructure crisis", purported to be caused by decades of inadequate investment and poor maintenance ofpublic works. This crisis discussion has contributed to the increase in infrastructureasset managementand maintenance planning in the US.That public-policy discussion was hampered by lack of a precise definition for infrastructure. AUS National Research Councilpanel sought to clarify the situation by adopting the term "public works infrastructure"

There are 2 types of infrastructure 1. Soft infrastructure 2. Hard infrastructure

Soft infrastructure:- 1. Governance infrastructure 2. Economic infrastructure 3. Social infrastructure 4. Cultural, sports and recreational infrastructure

Hard infrastructure1. Transport infrastructure2. Energy infrastructure3. Water management infrastructure4. Communications infrastructure5. Solid waste management6. Earth monitoring and measurement networks

Scenario of infrastructure in IndiaInfrastructure sector is one of the key drivers of economic development in the developing country like India. In recent years, India has consistently increased investment onInfrastructure from 5% of GDP in 10th five year plan period to 9% in 11 five year plan. Indias planning commission has projected an investment of US$ 1 trillion for the infrastructure in 12th five year plan. However, development in basic infrastructure is still relatively slower compared to other countries. The rapid growth of the Indian economy in recent years has placed increasing stress on physical infrastructure i.e. electricity, railways, roads, ports, irrigation, water supply and sanitation, all of which already suffer from deficit in terms of capacities as well as efficiencies. Infrastructure sector is mainly affected due to delay in project awarding, environmental clearances hurdles, land acquisition issues, slower execution, lack of cheaper financing options etc.

Current impact of budget on infrastructure sector1. Providing Rs.7060 crore to develop 100 smart cities

2. Allocation of Rs.8000 crore for rural housing scheme

Road sector

1.Allocation of Rs.14389 crore towards PMGSY (i.e. rural road development), 20% more than last time allocation

2.Proposal to invest Rs.37850 crore in NHAI and state Highways; with Target of NH construction of 8500 km will be achieved in current financial year

3.Proposed to work on expressways parallel toIndustrial corridors

Rail transportation

1.Allocation of Rs.1000 crore to boost rail connectivity in north east area

2.Allocation of Rs.1000 crore to accelerating rail connectivity in Border areas

3.To allocate Rs.100 crore for Metro Projects for Lucknow and Ahmedabad

Others

1. Infra Investment trusts to be set up to scrutinize infra projects

2.Present corpus of Pooled Municipal Debt Obligation Facility to be enlarged to Rs.50000 Crore from Rs.5000 crore.

Other Initiatives1.Proposal to develop SEZ in Kandla and JNPT

2.Allocate Rs.100 crore National Industrial Corridor in Pune.

3.Propose scheme for development of New Airports in Tier-I, II cities thru PPP mode Such Initiatives augurs well for the sector as it willgive opportunities to infrastructure players to bag neworders

Latest updates on infrastructure development in India

PM to bring huge FDI in India from JapanTOKYO:India will get USD 35 billion from Japan over the next five years for developmental projects, including building of smart cities and next generation infrastructure as also cleaning of the Ganga, as Premier Shinzo Abe today pledged to partner Prime Minister Narendra Modi's "ambitious"vision of inclusive development.

The two sides also signed five pacts covering defence exchanges, cooperation in clean energy, roads and highways, healthcare and women while vowing to take their relationship to newer level.

"Prime Minister Abe affirmed a broader and stronger Japanese partnership for Prime Minister Modi's bold and ambitious vision for accelerating inclusive development in India, particularly by transforming the infrastructure and manufacturing sectors," said the Tokyo Declaration for Japan-India Special Strategic and Global Partnership.

Mumbais eastern freeway Indias second largest flyover

Dubbed an engineering marvel, the first phase of Mumbai's Eastern Freeway from Orange gate to Panjarpol opened to the public in June 2013.

Over 25,000 vehicles are expected to take the freeway daily. The Eastern Freeway elevated road will be the longest such in an urban area in the country. The bridge will have 313 pillars and 3,340 segments.

The 17-km freeway is divided in three parts: the 9.29-km elevated road, the 4.3-km road-tunnel-flyover and an elevated 2.5-km flyover from Panjarpol till the Mankhurd-Ghatkopar Link Road (MGLR) via Govandi. The eastern freeway is Mumbai's most ambitious and much awaited project in terms of traffic decongestion as the road is expected to decongest entire eastern road corridor of the city.

Indores BRTS built on the pattern of Ahemdabad BRTS

The BRTS road route built at a cost of Rs 135 crore. City travellers have a bus frequency of 15 minutes at every specific point. The BRTS consists of physically separated bus lanes and enclosed 'metro-like' stations.

The proposed bus corridor will eventually cover a distance of 120.46 kms. The fare collection system will include smart cards.

In 2012, The UN chose Ahmedabad's BRTS as a showcase project to highlight that addressing climate change is not a burden, but an opportunity to improve the lives of people. Example of planned commuting system The Ahmedabad BRTS, which began as pilot project on a 12.5 kilometre stretch in July 2009, has emerged as an example of how a planned commuting system can help reduce emissions and improve air quality as well as have a positive impact on urban

Double decker - Trains

Its been some years since India's first superfast double-decker train was flagged off, but the railways has been introducing them on many routes. The much-awaited air-conditoned double decker express train between Chennai and Bangalore started its run from April 25 2013 augmenting seat availability in the high-demand route.

Every coach has seats in two decks with food trays attached at the back of each seat. Every row is provided with bottle holders, push back seats, windscreens and also charging socket. Kapurthala RCF is the only railway factory in the country which manufactures double decker AC coaches.

Indias first solar park at charanka village in Gujrat

Gujarat accounts for 66% of India's total solar power. The country's first Solar Park came up at Charanka village in Gujarat in April 2012. The park at Charanka, spread across 5,000 acres, has 500 MW of generation capacity of both solar and wind energy.

Solar project developers like Alex Astral, US-based Sun Edison, Lanco Solar, Roha Dyechem and GMR Gujarat Solar Power have set up plants in the park. While 214 MW of grid connected solar power was commissioned at Charanka by 17 national and international companies, 10 solar plants having combined generation capacity of 87.49 MW have gone on stream in Surendranagar, 8 in Kutch (85 MW) and three each in Banaskantha (55.20 MW) and Rajkot (25MW), amongst others.

In addition to solar energy, the park also manufactures solar power plant panels and other related equipment. It also provides training to local people of Gujarat to work at solar parks.

Yamuna expressway

The 165kmlong Yamuna expressway is one of the longest access-controlled six-lane rigid pavements in India. With the help of Yamuna Expressway, the rapidtransit corridor between Delhi and Agra, the drive from Greater Noida to Agra takes just 90 minutes.

On the 165 km Greater Noida-Agra expressway, the maximum speed limit is 100 kmph for cars and 60 km for heavier vehicles. The Yamuna Expressway, besides connecting Delhi to Agra through Noida-Greater Noida Expressway, touches 1,182 villages of Gautam Budh Nagar, Bulandshahar , Aligarh, Hathras (Mahamaya Nagar) and Mathura district.

Banihal-Qazigund rail link through Indias longest tunnel

An 11-km-long tunnel across the treacherous Pir Panjal mountain range on the Banihal-Qazigund railway line in Jammu and Kashmir, is the longest such transportation passage in India and second longest in Asia. The 18-km long Banihal-Qazigund section of the ambitious mountain railway, connecting Kashmir Valley with Jammu region, was inaugurated on June 26.

The railway line, which connects Kashmir Valley with Jammu region, will considerably reduce the travel time between the two places. The distance between Banihal and Qazigund, which is also one of the most treacherous stretches in the entire Kashmir rail network project, will reduce from 35 km by road to 17.5 km on train.

GIFT city in Gujrat

Spread over an area of 886 acres, GIFT city project aims at state-of-the-art internal infrastructure encompassing all basic urban infrastructure elements along with an excellent external connectivity by roads, metro rail and Bus Rapid Transport Service (BRTS).

The Rs 60,000-crore GIFT City project will house a financial services-based multi-services SEZ, a centre for domestic financial sector, corporate offices, regional offices of companies, a trade centre, housing colonies, social infrastructure and other associated amenities. The project is expected to create ten lakh new jobs in ten years.

The city will use the energy-efficient district cooling system instead of air-conditioning. It will also use an automated waste collection system that sucks away garbage from buildings at high speed.

Metro rail projects in many cities

The Metro fever is catching up in smaller cities, thanks largely to the success of Delhi Metro. While Bangalore has already started metro services, Jaipur, Gurgaon and Mumbai are expected to begin operations this year.

Meanwhile, Mumbai's Chembur-Wadala monorail section, which is India's first is set to be operational later this year. The 13 km first reach of Kochi Metro Rail project from Aluva to Palarivattom is expected to be completed by December 2015 and the second by March 2016.

Modernization underway at Indias airport

World over governments spend billions to make that airport moment agreeable and delightful for visitors and locals alike. India, with the gleamy T3 in Delhi, is just getting there...With the AAI initiating a number of upgradation works -both for airports and airspace navigation - the technology to be used is also undergoing a phenomenal change.

While Hyderabad Airport has been rated as the No. 1 in India by Skytrax-World Airport Awards, the GVK-led consortium that operates Mumbai airport will throw open terminal 2, or T2, that it hopes will outshine Delhi airport's T3.

Netaji Subhas Chandra Bose International Airport's new passenger terminal has come up in Kolkata. It will have a capacity to handle an annual traffic of 20 million passengers as compared to the present 7.46 million. A new glass-and-steel domestic terminal at Chennai airport is also coming up.

CONCLUSION :-

Infrastructure development is very necessary for every country and most probably for the developing countries. The main way to attract the foreign investors and corporate is to grow your infrastructure sector. As it requires a huge capital in beginning but at the maturity it yells in its twice the investment. In India many steps are taken up by Prime minister to boost the sector, so that it also gives push to other sectors.

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