1. Infrastructure1.1 Railway1.
2 Road1.3 CivilAviation1.4 Port1.5 Electricity1.6 PPPand Investment ModelsInfrastructureInfrastructure is the basic physical systems of a countryfor a business entity; transportation, communication, sewage, water andelectric systems are examples of infrastructure. Infrastructure development isa herculean job as it involves huge investments, long gestation periods,procedural delays and returns spread over a long period of time.
Infrastructure is, a driver for inclusive growth. Although,investments in infrastructure are not easily available due to requirements oflumpy capital investment with very low returns. Such investments are justifiednormally on grounds of social benefits rather than on financial viability.Absence of world class infrastructure facilities in India isoften considered as one of the major impediments to growth. With the sprawlingurbanization, demand for infrastructure continues to rise faster than thecapacity in the economy to satisfy such demands.RAILWAYSIndian Railways,the largest rail network in Asia comprising about 67,000 route kilometres,there has not been much growth in the network since independence. According tothe Ministry of Railways, in the last 69 years, the freight loading hasincreased by 13 times and passenger kilometers by 16 times, but the routekilometers have grown by only 24%.Mission Raftar’Mission Raftaar’ aims to increase the speed of trains inIndian Railways.
It was announced in theRailway Budget 2016-17. The mission hasa target of doubling of average speed of freight trains and increasing theaverage speed of all non-suburban passenger trains by 25 kmph in the next 5 years.Main routes have been identified for raising of speed underMission Raftaar. These are six routes on Golden Quadrilateral and diagonalsnamely, Delhi – Mumbai, Delhi – Howrah, Howrah- Chennai, Chennai – Mumbai,Delhi – Chennai and Howrah – Mumbai. These six routes carry 58% of freight traffic and 52% of coachingtraffic with a share of only 16% of the network. Golden Quadrilaterals and its Diagonal routeshave been designated for replacement of loco hauled short distance passengertrains by MEMUs (Mainline Electric Multiple Unit)/DEMUs (Diesel Multiple unit) having better accelerationand deceleration characteristics for fast pickup and braking.Mission 41K’Mission 41K’ tosave Rs.
41,000 crore on the Indian Railways’ expenditure on energy consumptionover the next 10 years.This target ofMission 41K will be achieved by taking a slew of measures which include moving90% of traffic to electric traction over diesel from present 50% of the totalrail traffic.Problems associated with Railways· Passenger fares has not been revised regularlywhile freight charges are increased to recover cost. This has resulted in shiftingof the traffic to other transportation system.· Frequent rail accidents mostly caused byderailment and at level crossings leading to death of innocent persons due toinefficient infrastructural development.Merger of Railway and General Budget and impact on Railways· Railway budget was used for populism and partypolitics. These decisions can now be taken by railway board on commercialbasis.
· Huge revenue deficit of Railways will betransferred to finance ministry.Steps to ensure Safety in Railways· Implementation of Kakodkar committee recommendationswhich include constitution of a separate safety authority.· GPS, Maps, Anti-collision avoidance systems etc.must be introduced in Indian railways.
The loopholes must be plugged withadvanced technologies.· The old track design and poor maintenance arealso one of the reasons of frequent train accidents. Thus Track Modernisationshould be ensured at the rapid pace.· High Quality train coaches like latest LHBcoaches, engines, and all other technicalities like advanced braking system,etc. should be ensured. ROADSIndia has a roadnetwork of more than 50 lakh kilometres which is the second largest in theworld.
These roads carry 65 percent of the freight traffic and 80 percent ofthe passenger traffic of the country. National Highwayscarry 40 percent of the traffic, yet constitute less than 3% of the total roadnetwork in the country. The State Highways have also suffered from prolongedneglect.Pradhan Mantri Gram Sadak Yojana (PMGSY)· A record 47,350 kms.
of PMGSY road wasconstructed during 2016-17. This is the highest construction of PMGSY roads ina single year, in the last 7 years.· With a view to reduce the “carbon footprint” ofrural roads, reduce environmental pollution, PMGSY is aggressively encouraginguse of “Green Technologies” and non-conventional materials like waste plastic,cold mix, geo-textiles, fly-ash, iron and copper slag etc. in rural roads.
· Around 4,100 kms. of PMGSY roads wereconstructed using ‘Green’ technologies, in 2016-17.Communication InfrastructureITEWS for Disaster PreventionIndian Tsunami Early Warning System (ITEWS) is a network of sensors todetect tsunamis and a communication infrastructure to disseminate timely alarmsfor evacuation of people from coastal and low lying areas. INCOIS (IndianNational Centre for Ocean Information Services) has established astate-of-the-art early warning centre with all the necessary computational andcommunication infrastructure to enable reception of real-time data from allsensors, data analysis, as also generation and dissemination of tsunamiadvisories.
Civil AviationThe Indian Aviation Industry is among the world’s fastestgrowing industries. Aviation Sector plays an important role in moving people orproducts from one place to another, be it domestic or international. India aimsto become the third-largest aviation market by 2020 and the largest by 2030.The Civil Aviation industry has ushered in a new era of expansion, because offactors such as low-cost carriers, modern airports, increasing Foreign DirectInvestment (FDI) in domestic airlines, advanced information technology (IT)interventions and growing emphasis on regional connectivity.Importance of Civil AviationEmployment in the Indian tourism industry is also dependenton the aviation industry.Civil Aviation sector makes a significant contribution topublic finances in form of the Service tax paid by air passengers, corporationtax paid by airline companies, airport, MRO (Maintenance Repair and Overhaul)firms and income tax paid by their respective employees, along with the revenue collected through taxes on fueland equipments.National Civil Aviation Policy 2016NCAP has a Vision to create an eco-system to make flyingaffordable for the masses and to enable 30 crore domestic ticketing by 2022 and50 crore by 2027, and international ticketing to increase to 20 crore by 2027.
Similarly, cargo volumes should increase to 10 million tonnes by 2027.India plans to enter into ‘open sky’ air service agreements(ASA) with SAARC countries and with countries beyond 5,000 km radius fromDelhi.Objectives of NCAP· To establish an integrated eco-system which willlead to growth of civil aviation sector, which in turn would promote tourism,increase employment and lead to a balanced regional growth. · Ensure safety, security and sustainability ofaviation sector through the use of technology and effective monitoring. · Enhance regional connectivity through fiscalsupport and infrastructure development. · Enhance ease of doing business throughderegulation, simplified procedures and e-governance. · Promote the entire aviation sector chain in aharmonised manner covering cargo, MRO, general aviation, aerospacemanufacturing and skill development.The policy is very comprehensive, covering 22 areas of theCivil Aviation sector.
It encourages development of airports by AAI, StateGovernments, the private sector or in PPP mode. Policy will help in developmentof Maintenance Repair and Overhaul business in India.UDAN schemeUDAN (Ude Desh ka Aam Naagrik) Scheme is to develop theregional aviation market. It is a market-based mechanism in which airlines bidfor seat subsidies. Under UDAN scheme, half of the seats on the plane will becapped at Rs. 2,500 per hour’s flight. Government will provide subsidy toairlines for first three years of operations.
The operators could seek aViability Gap Funding (VGF) apart from getting various concessions. A Regional Connectivity Fund (RCF) will be created to fundthe scheme via a levy on certain flights. States are expected to contribute 20per cent to the fund.The UDAN is likely to a givea stimulus to tourism and employment generation in the hinterland. Throughintroduction of helicopters and small aircraft, it is also likely to reduce travel timings in remote and hilly regions,as well as islands and other areas of the country.Challenges in the Civil Aviation Sector· Viability-gap funding, subsidized ATF andconcessions can increase the fiscal burden. States need to provide free landand operational infra to bring down the cost.· Lack of interest of private players, mayoverburden Air India which is already under huge stress.
· Airport charges are quite high i.e. theycontribute 20% for long distance and 30% for short distance air tickets. · Infrastructure like equipments, technicalmanpower etc are inadequate. Air traffic control services and air safety alsoneed to be ramped up.
· The maintenance repair and overhaul (MRO)charges are high in India, so airlines prefer to go to Abu Dhabi, Jordan,Singapore for MRO. The high MRO charge is passed on to passengers. · Low cost operations might not ensure much profitfor big airlines.
Way forward for Aviation IndustryIndia’s aviationindustry is largely untapped with huge growth opportunities, considering thatair transport is still expensive for majority of the country’s population. Theindustry stakeholders should engage and collaborate with policy makers toimplement efficient and rational decisions that would boost India’s civilaviation industry. There is a need to make joint efforts towards the growth ofaviation industry rather than involving in unhealthy competition and pricewars. India should also learn from the experience of other BRIC nations andalso partner countries like USA, and should promote more consensus, private participationin civil aviation to achieve the full potential of its civil aviation industry.PortsIndian maritime sector handles 95 percent of India’s foreigntrade by volume.Sagarmala ProjectSagarmala project is a port-led development programme ofMinistry of Shipping. Port led development model would include ports, SEZs,rail, road, air and waterway connectivity with the hinterland. It also aims atreducing the logistics costs in operation of ports.
The Sagarmala initiative addresses the challenges inMaritime Sector by focusing on -· Supporting and enabling Port-led Developmentthrough appropriate policy and institutional interventions and providing for aninstitutional framework for ensuring inter-agency andministries/departments/states collaboration for integrated development.· Port Infrastructure Enhancement includingmodernization and setting up of new ports.· Efficient Evacuation to and from hinterland throughdevelopment of multi-modal transport network.For a comprehensive and integrated planning for”Sagarmala”, a National Perspective Plan (NPP) for the entirecoastline have been prepared which will identify potential geographical regionsi.e.
Coastal Economic Zones (CEZs). Major Port Authorities Bill 2016 Provisions of the Bill· The port trusts that govern the 12 majorports in India will be replaced by a Major Port Authorities Board. · Bill provides the government more flexibilityand power to allow private players in the port sector. Problems faced by Indian Ports· India’s major ports are small in size and carryless traffic than ports like Singapore or Dubai. Many major ports are affectedby silting and they are not dredged properly.
· Due to underinvestment by the government andprivate companies in the port sector Modern Infrastructure could not bedoubled.· The bureaucratic style of functioning of portshas hampered its efficiency. Major ports are operated by the Central Governmentwhile minor ports are operated by State Governments. · Indian ports do not have the adequate capacityto handle big container vessels.· For transshipment, India is dependent on otherinternational ports like Colombo, Singapore etc.
Due to this, India not onlyloses the potential economic opportunities of a transshipment hub, but it alsocost India nearly 1500 Crore per annum.· High turn-around time, low draft and siltationand other geographic hindrances.· Poor connectivity to hinterland.Power InfrastructureElectricity is one of thebasic human needs and to improve human development, every household must haveaccess to electricity. Energy is now an unavoidable aspect in the growth of thenation. Energy is also one of theessential infrastructuresfor employment generation and poverty alleviation. Economic growth drives theenergy demand.India has an installedpower generation capacity of 310 GW as of December 2016.
With this, India has becomeworld’s 3rd largest producer and 4th largest consumer of electricity. However,during 2014-15, per capita electricity generation in India was 1,010 kWh withconsumption rate at 746 kWh per capita. Around 60 per cent of India’s currentpower generation capacity is coal based. The distribution segmentof the Power sector suffers from Aggregate Technical & Commercial losses. Deendayal Upadhyaya Gram Jyoti YojanaEmphasizing theimportance of rural electrification, the Government launched, Rajiv GandhiGrameen Vidyutikaran Yojana (RGGVY ). The primary objective of the scheme wasto create rural electricity infrastructure and complete householdelectrification. RGGVY was subsumed in the new programme, Deendayal UpadhyayaGram Jyoti Yojana (DDUGJY) in December 2014. The scheme intends to acceleraterural development, generate employment and eliminate poverty through developmentin areas of irrigation, small scale industry, cold chains, health care,education, IT and other services.
Aim of DDUGJY:The major components of the scheme are:· Feeder separation.· Strengthening of sub- transmission and distribution network.· Metering at all levels (input points, feeders and distributiontransformers).· Micro grid and off grid distribution network and Rural electrification-already sanctioned projects under RGGVY to be completed.
DDUGJY provides completeflexibility with wider scope as there is no minimum population criterion aswell as there is 100 per cent subsidy for Project Management Agency. Under thisscheme, agriculture-intensive States benefit from works of feeder separation. Under DDUGJY,electrification of un-electrified Below Poverty Line (BPL) households isprovided free electricity service connection. Implementation of DDUGJY has considerably reducedburden of women by reducing number of hours they spent on household activities.Lighting of the house has also reduced expenditure on kerosene. Now they can learn important activities on health,nutrition and sanitation from TV programmes available to rural people becauseof electricity connection.Uday SchemeUDAY (Ujwal DISCOM Assurance Yojana) was launched by theGoI, in November 2015.
UDAY is expectedto clear the debt burden of discoms so that they are able to buy more unitswithout adding to losses and achieve 24X7 PFA (Power for All). It will alsogive the discoms an opportunity to start afresh. The schemes has following objectives-· Financial Turnaround· Operational improvement· Reduction of cost of generation of power· Development of Renewable Energy· Energy efficiency & conservation UJALA schemeUnnat Jyoti By Affordable LED’s for All (UJALA) scheme ispart of the Government of India’s efforts to spread the message of energyefficiency in the country.Objective of UJALA Scheme· Promote efficient use of energy at theresidential level· Enhance the awareness of consumers about usingenergy efficient appliances· Aggregate demand to reduce the high initialcosts thus facilitating higher uptake of LED lights by residential users.
Its aims to make India an LED nation with a target ofreplacing 77 crore conventional incandescent bulbs with LED. Under it, everygrid-connected consumer having a metered connection from their respectiveelectricity distribution company will get LED bulbs at subsidized rates.The UJALA scheme is implemented by the Energy EfficiencyServices Limited (EESL), a joint venture of PSUs under the Union Ministry ofPower.
Vidyut PravahThis application provides highlights of the poweravailability in the country on real time basis at the power exchanges.Basically, for Discoms to buy power.GARV AppIn order to track real time electrification of ruralhouseholds, Govt has launched the Grameen Vidyutikaran Android app or commonlyknown as GARV. Recently, the Govt upgraded the app to GARV-II that providesreal time data of all six lakh villages of the country. Nuclear Power in IndiaNuclear power generation has demonstrated excellent performancein almost all aspects viz. operational and safety records, capacity utilisation,carbon footprint and quantity of waste generation. Issues pertaining toproliferation and waste storage are currently well within the realm of beingmanaged and with the advent of new generation of reactors, these concerns aregoing to be further minimised.
India currently has approximately 6 gigawatts (GW) ofnuclear power generation capacity. India’s Department of Atomic Energy’s targetis to have 63 GW of nuclear power capacity by 2032. India also aims to boost nuclear power generationnationwide so that it accounts for nearly 25% of all electricity in the countryby 2050. With 21 operating plants and 12 plants in the pipeline, we are poiseda period of enhanced growth in this sector. The atomic energy sector isprojected to make a significant contribution to energy security and climatemitigation over the next few decades. Renewable EnergyIndia’s IntendedNationally Determined Contributions (INDC) at Paris Agreement 2015 is forreduction in the emissions intensity of its GDP by 33 to 35 per cent from 2005level, by 2030 and to create an additional carbon sink of 2.
5 to 3 billiontonnes of CO2 equivalent through additional forest and tree cover by 2030. Inorder to meet this ambitious target, renewable energy is expected to play acrucial role in our country. As per the present estimates, India has anestimated RE potential of about 895 GW from commercially exploitable sources.India has vast RE potential through wind, solar, biomass and small hydro whichis concentrated in certain parts of the country.
The wind and solar potentialis mainly in the southern and western states viz. Tamil Nadu, Karnataka, AndhraPradesh, Maharashtra, Gujarat and Rajasthan. As per Section 86(1) (e)of the Electricity Act,2003, the State Electricity Commission has been mandated to promotecogeneration andgeneration of electricityfrom renewable energy sources. Solar power is also aprominent feature in India’s Intended Nationally Determined Contributions(INDC) at the Conference of Parties (COP) in Paris, France. India intends toachieve 40 percent cumulative electric power installed capacity from non-fossilfuel based energy resources by 2030, as one of ways to curb global temperatureincrease.
National Solar MissionIt has a target of 100 GW of Electricity production (both grid connected and off-grid)from Solar Energy by 2022. Out of this 100 GW, 60 GW is to be achieved throughgrid-connected utility scale solar plants and 40 GW through grid connected solarrooftop projects. National Solar Mission also has an ambitious goal ofproviding 2 crore solar lighting systems in place of kerosene lamps to ruralcommunities.International Solar Alliance (ISA)InternationalSolar Alliance is an initiative by the Government of India to accelerate the deploymentof solar energy for universal energy access and energy security for the future.The initiative was launched at the Conference of Parties (21st)(Paris,2015)to the United Nations Framework Convention on Climate Change.SURYA-JYOTISurya Jyoti(Photo-Voltaic Integrated Micro Solar Dome) is a low cost and energy efficientlamp useful particularly for urban slum or rural areas which don’t getelectricity supply.
The lamp works by capturing day light and concentrating andsaving it, which can be used during the night time. The device is leak proof, andcan work up to four hours continuously after sunset. This device has beendeveloped by the Department of Science & Technology as a part of the GreenEnergy initiatives.Remote Village Electrification Programme Small Hydro-PowerHydro power projects aregenerally categorized in two segments i.e.
small (less than 25 MW) and largehydro (more than 25 MW). While Ministry of New and Renewable Energy is responsiblefor small hydro projects, the large hydro power is dealt by Ministry of Power. PPPIt is a contract between a private Party and Govt forproviding public asset or service.