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Infrastructure in india

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?.

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Infrastructure in india

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  1. Infrastructure in india Features Challenges Future Dr. Raj Agrawal

  2. 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

  3. WHY INFRASTRUCTURE? • Huge need for investment • Investment in infrastructure drives growth • Urgent need for private capital • Transport & telecommunication command special interest • Welfare of the society

  4. KINDS OF INFRASTRUCTURE • ECONOMIC INFRASTRUCTURE • SOCIAL INFRASTRUCTURE

  5. ECONOMIC INFRASTRUCTURE • Transport, Toll roads, Bridges, Tunnels, Seaports, Airports, Railways • Energy & Utility, Gas distribution storage, Water treatment, Electricity generation • Communication, Satellites, Cable networks

  6. SOCIAL INFRASTRUCTURE • Healthcare facilities • Education facilities • Social housing • Judicial facilities • Incidence Of Poverty

  7. PROBLEMS • Power • Irrigation • Drinking Water • Roadways • Railways • Aviation • Telecommunication

  8. POLICIES • 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

  9. PUBLIC/PRIVATE PARTNERSHIP • Definition • Eligibility • Government support • Approval of project proposals • Procurement process for PPP projects • Appraisal & monitoring by lead financial institutions

  10. Development of PPP market in India • 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

  11. Infrastructure Requirements • 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

  12. Investment requirements • 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

  13. Challenges before India • 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.

  14. Conclusion • 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

  15. THANK YOU!

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