India and infrastructure problems
India infrastructure present a bleak image due to lack of adequate planning and investment. Lack of infrastructure forces investors to China despite rising labor costs and declining government incentives.
If proper precautions are taken, however India holds as much potential as China did years ago and current lack infrastructure should be seen as a another hurdle to industrial growth in the country.
Preliminary assessment suggests that investment in infrastructure during 12th five year plan 2012-2017 would need to be order of about 1025 U.S. dollars to achieve a share of 9.95 percent proportion of G.D.P.
According to planning commission. At least 50 percent investment should come from private sector. This amplifies public sector investment infrastructure would increase from U.S. dollar 262.25 billion in eleventh plan to around U.S. dollars 409.92 billion in twelfth five year plan.
It has become a tough task for getting loans from banks after scams for infrastructure projects. Finance minister created recently a infra debt fund to boost on going infrastructure projects to secure loans regularly .Plan to allow limit infrastructure bonds up to 25 billion dollars for entire infrastructure sector. This is the important step taken by finance minister for funding infrastructure projects .. This will solve the funding problem on entire sector up to a great extent.
But problems unending for promoters for developing infrastructure projects due to various reasons .
The most common problem for all infrastructure projects has been land acquisition. Land reforms have also not really taken off due to vested interests of politicians and developers.
The power sector according power minister of India will miss its capacity addition for eleventh plan five year until end of March 2012 by 17%. India targeted increase power generation capacity 100,000 MW during 12th five year plan(2012-2017).reasons are many and include problems land acquisition , issues relating to coal supply and governmental approvals. Coal shortage has been big problem for India power sector despite the country, having one of world largest coal resources. Coal shortages has been major problem for generation as power is essential requirement of infrastructure projects.
Government should invest with private promoters partnership to build quality roads to build operate basis and encouraging rail ways for building new and extending railways lines by electrifying it and also introduction of high speed trains and this will help possible faster movement of goods and equipment .
Locating new ports and building ports with super specialties berthing facilities to import and export of goods for India business growth. Building bridges is essential for movement of men and materials.
Government and environmental ministry should issue time bound clearances for completion of infrastructure projects. Official to review and record once in month about progress made for issue clearances and reasons and also for delay in issue of environmental clearances.
Government and private promoter to ensure continuous flow of funds.
Proper review of progress of infrastructure projects by government officials including concern ministry planning commission officials and promoters for time bound completion of projects.
Air port authority of India Government to build airports and operators of airlines provide Air linkages between two tier cities for effective movement of people and representatives involved in infrastructure projects.
Government to appoint rank of collector grade official for faster process of land acquisition of delegating
Necessary powers
It is vital that infrastructure projects implementation are very important since government presented average growth 2011 -2012 as ( 9% G.D.P ) and determined to take India to select league of “ middle income countries”.
.
India infrastructure present a bleak image due to lack of adequate planning and investment. Lack of infrastructure forces investors to China despite rising labor costs and declining government incentives.
If proper precautions are taken, however India holds as much potential as China did years ago and current lack infrastructure should be seen as a another hurdle to industrial growth in the country.
Preliminary assessment suggests that investment in infrastructure during 12th five year plan 2012-2017 would need to be order of about 1025 U.S. dollars to achieve a share of 9.95 percent proportion of G.D.P.
According to planning commission. At least 50 percent investment should come from private sector. This amplifies public sector investment infrastructure would increase from U.S. dollar 262.25 billion in eleventh plan to around U.S. dollars 409.92 billion in twelfth five year plan.
It has become a tough task for getting loans from banks after scams for infrastructure projects. Finance minister created recently a infra debt fund to boost on going infrastructure projects to secure loans regularly .Plan to allow limit infrastructure bonds up to 25 billion dollars for entire infrastructure sector. This is the important step taken by finance minister for funding infrastructure projects .. This will solve the funding problem on entire sector up to a great extent.
But problems unending for promoters for developing infrastructure projects due to various reasons .
The most common problem for all infrastructure projects has been land acquisition. Land reforms have also not really taken off due to vested interests of politicians and developers.
The power sector according power minister of India will miss its capacity addition for eleventh plan five year until end of March 2012 by 17%. India targeted increase power generation capacity 100,000 MW during 12th five year plan(2012-2017).reasons are many and include problems land acquisition , issues relating to coal supply and governmental approvals. Coal shortage has been big problem for India power sector despite the country, having one of world largest coal resources. Coal shortages has been major problem for generation as power is essential requirement of infrastructure projects.
Government should invest with private promoters partnership to build quality roads to build operate basis and encouraging rail ways for building new and extending railways lines by electrifying it and also introduction of high speed trains and this will help possible faster movement of goods and equipment .
Locating new ports and building ports with super specialties berthing facilities to import and export of goods for India business growth. Building bridges is essential for movement of men and materials.
Government and environmental ministry should issue time bound clearances for completion of infrastructure projects. Official to review and record once in month about progress made for issue clearances and reasons and also for delay in issue of environmental clearances.
Government and private promoter to ensure continuous flow of funds.
Proper review of progress of infrastructure projects by government officials including concern ministry planning commission officials and promoters for time bound completion of projects.
Air port authority of India Government to build airports and operators of airlines provide Air linkages between two tier cities for effective movement of people and representatives involved in infrastructure projects.
Government to appoint rank of collector grade official for faster process of land acquisition of delegating
Necessary powers
It is vital that infrastructure projects implementation are very important since government presented average growth 2011 -2012 as ( 9% G.D.P ) and determined to take India to select league of “ middle income countries”.
.
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