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India’s InfrastructurePresented By :-

Ashutosh MishraAshutosh KumarAshwani Kumar

Sashank NairPratuish Bahadur

Siddharth M.

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Content • Introduction• Trends in Infrastructure• Sector wise projected Investment in Infrastructure• Power• Ports• Aviation• Roads & Transportation• Telecommunication• Railways• SEZ• Urban infrastructure• Rural infrastructure• Water resources• References

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Introduction

“The link between infrastructure and development is not a once for all affair. It is a continuous process; and progress in development has to be proceeded accompanied and followed by progress in infrastructure, if we are fulfill our declared objectives of a self accelerating process of economic development.”

-Dr. V.K.R.V. Rao

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Conti……………………..

“Expanding investment in infrastructure can playan important counter cyclical role. Projects andprogrammes [are] to be reviewed in the areaof infrastructure development, including purepublic private partnerships, to ensure that theirimplementation is expedited and does not sufferfrom [the] fund crunch.”Mr. Manmohan Singh, Indian Prime Minister,(quoted in newspaper reports, October, 2008)

India today is fast changing – setting the pace for growth

and stability…

• Slow rate of growth

• Bureaucratic

• Protected and slow

• Small consumer markets

• Underdeveloped infrastructure

• One of the fastest growing world economies

• Reasonably proactive

• Opening up of sectors for investment

• Promising consumer markets

• Significant investment in infrastructure creation for industry

YESTERDAY

TODAY

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Reasons to invest in India:

• One of the world’s fastest growing economies – and growth expected to continue at 7-7.5% despite the global downturn

• Few restrictions on foreign direct investment (FDI) for infrastructure projects

• Tax holidays for developers of most types of infrastructure projects, some of which are of limited duration

• Opening up of the infrastructure sector through PPPs

Budget and Infrastructure

• 9% of the country’s GDP will be spent on Infrastructure by 2014 from current 5%. One third of this investment would come from private companies.

• Investment in Infrastructure

2007 -2012 = $500 bn

2012 -2017 = $1.5 tn

Infrastructure

• 60% of Public Private Partnership (PPP) projects by Indian Infrastructure Finance Company Limited (IIFCL); ‘takeout financing’.

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TRENDS IN INFRASTRUCTURE SECTORItems Unit 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Energy Coal

ProductionMn.

Tones 3.1 3.6 4.6 4.2 5.1 6.8Electricity generated bn. Kwh 3.6 3.1 3.9 3.9 5.0 6.5

Hydel bn. Kwh 8.5 11.1 -7.6 -13.6 15.6 17.6Thermal

( including nulcear) bn. Kwh 6.2 5.7 9.3 6.3 3.8 6.1

Petroleum

crude oilmn

tones 3 -3.4 -2.4 1.5 -1.2 3.7Refinery

throughputmn

tones 3.7 20.2 25.4 8.3 7.2 6.7

Steelmn

tones 6.3 1.4 15 6.5 12.5 8.1

Cementmn

tones 9.1 5.7 14.2 -0.9 7.4 9.7

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Continue…

Items Unit 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05Transports & communication Railways revenue earning-goods traffic

mn tonnes 5 3.7 4 5.3 7.5 7.7

cargo handled at major ports

mn tonnes 10.7 3.4 9.0 9.9 7.5 11.1

New telephone communication provided

000 number

s 27.1 16.4 29.7 27.2 23.9 40

Civil Aviation

Export cargo handled000

tonnes 6.2 -3.9 10.3 4.9 -0.2 13.9Import cargo handled

000 tonnes -5.9 -0.5 15.4 4.9 1.6 20.3

Passengers handled at international terminals mn 4.6 1 2.9 5.4 -2.7 7.4Passengers handled at domestic terminals mn -1.8 0.9 6.9 8.8 -5.8 8.8

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SECTOR WISE PROJECTED INVESTMENT IN INFRASTRUCTURE DURING 11TH FIVE YEAR PLAN (2007-12)

SECTOR INVESTMENT IN CRORE SECTORAL SHARE ( %)

Electricity 616526 30.50

Roads 311816 15.40

Telecom 267001 13.20

Railways 255000 12.60

Irrigation 217722 10.80

Ports 73941 3.70

Airports 34697 1.70

Others 242006 14.34

Total ( including others) 2018709 100

Public sector 1422176 70.4

Private sector 596533 29.6

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SECTOR WISE PROJECTED INVESTMENT IN INFRASTRUCTURE DURING 11TH FIVE YEAR PLAN (2007-12)

35%

18%15%

14%

12%4%

2%

ElectricityRoadsTelecomRailwaysIrrigationPortsAirports

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POWER

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GROWTH IN GDP & POWER GENERATION

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Distribution of installed capacity as on 31-12-2007

64%8%

3%

25%

ThermalRESNuclearHydro

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Power supply position – all-IndiaPeriod Peak Peak Peak Peak Energy Energy Energy Energy

Demand met Deficit/ Deficit Requirement availability Deficit/ Deficit

     Surplus Surplus

   Surplus Surplus

  (MW) (MW) (MW) ( % ) (MU) (MU) (MU) ( % )

9th Plan end 81,555 71,262 -10,293 -12.6 5,22,537 4,83,350 -39,187 -7.5

2002-03 81,492 71,547 -9,945 -12.2 5,45,983 4,97,890 -48,093 -8.8

2003-04 84,574 75,066 -9,508 -11.2 5,59,264 5,19,398 -39,866 -7.1

2004-05 87,906 77,652 -10,254 -11.7 5,91,373 5,48,115 -43,258 -7.3

2005-06 93,255 81,792 -11,463 -12.3 6,31,757 5,78,819 -52,938 -8.4

2006-07 1,00,715 86,818 -13,897 -13.8 6,90,587 6,24,495 -66,092 -9.6

Apr-Dec 2007 1,06,624 90,793 -15,831 -14.8 5,43,394 4,97,793 -45,601 -8.4

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Eleventh plan power capacityaddition targets (MW & per cent)

Sector Hydro Thermal Nuclear Total (MW)

Share (%)

Central 9,685 26,800 3,380 39,865 50.7

State 3,605 24,347 0 27,952 35.5

Private 3,263 7,497 0 10,760 13.8

Total 16,553 58,644 3,380 78,577

Share (%) 21.1 74.6 4.4 100

The National Electricity Policy (NEP),2005 recognizes electricity as a “basic human need” and targets a rise in per capita availability from 631 units to 1,000 units per annum by the end of 2012.

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Rajiv Gandhi Garmin Vidhyuti-karan Yojana(RGGVY) : Progress

• 27 States and their utilities have signed the memorandum of agreement (MoA)

• Four CPSUs— (PGCIL), (NTPC), (NHPC),(DVC)—have been allocated 139 districts for implementation of RGGVY

• At present 235 projects are under implementation covering 67,012 unelectrified villages and 83.1 lakh BPL households at the awarded cost of Rs. 12386.03 crore.

• 45,430 villages have been electrified and 18,25,508 connections to BPL households have been released.

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PORTS

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MAJOR PORTS OF INDIA

• JNPT • Chennai • Cochin • Visakhapatnam • Kandla • Mormugao • Paradip • New Mangalore • Tuticorin • Ennore

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Trends in traffic at major ports

commodity 2005-06MT

2006-07MT

APRIL-OCT2006 2007

GROWTH (%)2006 2007

POL 142.1 154.3 84.6 95.9 8.6 13.4

Iron Ore 79.2 80.6 42.9 47.7 1.8 11.2

Fertilizer & Raw Materials

12.2 14.9 7.5 9.4 22.1 25.3

Foodgrains 2.1 5.0 2.5 1.1 138.1 (-)0.56

Coal 58.8 60.0 32.8 36.8 2.0 12.2

Vegetable Oil 3.9 3.6 2.5 2.5 7.7 -

Other Liquids 10.8 10.9 6.0 7.0 0.9 16.6

Containerized Cargo

62.0 73.4 40.8 50.9 18.4 24.8

Others 52.5 61.1 33.9 37.3 16.4 10.0

TOTAL 423.6 463.8 253.5 288.6 9.5 13.9

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Selected performance indicators for major ports

Name of Port Average pre-berthing waiting Average turnaround time (days) time hours - on port A/c2005-06 2006-07 April-Oct 2007

Average turnaround time (days)

2005-06 2006-07 Apr-oct 2007Kolkata ( KDS) 0.09 0.13 - 4.12 3.89 4.51

Kolkata ( haldia dock complex)

30.37 26.05 27.82 4.0 3.97 4.24

Mumbai 4.8 5.22 5.47 4.09 4.63 4.30

JNPT 7.40 5.45 8.88 1.96 1.67 1.79

Chennai 0.90 0.8 1.00 3.30 3.40 3.80

Cochin 2.94 0.29 1.46 2.13 2.19 2.08

Visakhapatnam 1.54 4.78 7.83 3.80 3.65 4.08

Kandla 19.68 35.28 21.12 4.39 5.46 4.62

Mormugao 17.58 19.34 22.60 4.08 4.46 3.74

Paradip 1.48 1.41 23.22 3.55 3.54 6.04

New Mangalore

0.96 1.87 5.52 3.00 3.14 3.69

Tuticorin 3.06 3.22 3.60 2.83 3.67 3.57

En no re 0.36 0.31 0.91 2.23 1.89 2.08

All Major Ports

8.77 10.05 11.17 3.50 3.62 3.79

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Some facts about Indian Ports• The country’s coastline of 7,517 km, spread over 13 States, is studded with

12 major ports and 200 non-major ports.

• The total traffic carried by both the major and minor ports during 2006-07 was estimated at around 650 MT

• Despite having adequate capacity and modern handling facilities, the average turnaround time of 3.6 days, compared with 10 hours in HongKong, undermines the competitiveness of Indian ports.

• The Jawaharlal Nehru Port (JNPT), India’s largest container port, handledroughly 3.3 million TEUs in 2006-07

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AVIATION

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Passenger and cargo traffic by air

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STATISTICS OF INDIAN AIR TRANSPORT

2004-05 2005-06 % Change

Fleet Size ( No.) 184 243 32.1

Aircraft Departure per day ( No.)

847 1012 19.5

Passengers carried per day ( No.)

67,866 86,992 28.2

Growth in Passenger Traffic ( %)

68.4 68.0 --

Cargo carried per day ( Tonnes )

978.9 1010 3.2

ROADS & TRANSPOTATION

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Size of the Initiatives

• India is the second largest in the world-extensive road network of 3.3 million kilometers

• Carry about 61% of the freight and 85% of the passenger traffic.

• All the highways and expressways together constitute about 66,000 kilometers (only 2% of all roads), whereas they carry 40% of the road traffic.

• Indian Government annually spends about Rs.18000 crores

Target

• Developing 1000 km of expressways• Developing 8,737 km of roads, including 3,846 km of

national highways, in the North East• Four-laning 20, 000 km of national highways• Four-laning 6,736 km on North-South and East-West

corridors• Six-laning 6,500 km of the Golden Quadrilateral and

selected national highways• Widening 20,000 km of national highways to two

lanes

Approach

• National Highways Authority of India (NHAI) is the apex Government body for implementing the NHDP. All contracts whether for construction or BOT are awarded through competitive bidding

• Private sector participation is increasing, and is through construction contracts and Build-Operate-Transfer (BOT) for some stretches – based on either the lowest annuity or the lowest lump sum payment from the Government

• BOT contracts permit tolling on those stretches of the NHDP• A large component of highways is to be developed through

public-private partnerships and several high traffic stretches already awarded to private companies on a BOT basis.

Policy

• 100% FDI under the automatic route is permitted for all road development projects

• 100% income tax exemption for a period of 10 years

• Grants / Viability gap Funding for marginal projects by NHAI.

• Formulation of Model Concession Agreement

TELECOMMUNICATION

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Mobile Tariffs in India one of the Lowest

0.230.22

0.19

0.170.16

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Growth of Telecom in India

• 1994 National Telecom Policy – 1994 announced

• Aug 1995 Kolkata became the first metro to have a cellular network

• 1997 Telecom Regulatory Authority of India was setup

• 1999 Tariff rebalancing exercises gets initiated

• March 1999 National Telecom Policy – 99 announced

• Aug 1999 License fee (revenue share) reduced from provisional 15% to 12%, 10% & 8% on Circle wise basis (A type, B type & C type circles)

• 2000 TRAI Act amended & separate tribunal proposed

• Jan 2001 TDSAT started functioning• Jan 2001 Policy announced for additional licenses in

Basic and Mobile Services• Jan 2001 Limited mobility allowed to Basic Services

(CDMA spectrum allotted to Basic Service Operators)

• Oct-2002 BSNL entered in to GSM cellular operationw.e.f 19th October, 2002. Made incoming call free & initiated tariff equalization processTariff for GSM cellular mobiles reduced

• Nov 2003 Unified Access (Basic & Cellular) Service License (USAL) introduced as a first step

towards Unified License RegimeTechnology neutral and allows provisioning any kind of service

• Apr 2004 License fee reduced by 2% across the board for

all the access licenses.

Teledensity-Rural & UrbanTeledensity

0.52 0.68 0.93 1.21 1.49 1.57 1.73 1.865.88 7.96.94 8.36 10.37 12.2 14.32

20.74

26.88

39.45

48.52

60.04

2.32 2.86 3.58 4.29 5.11 7.02 8.9512.74

18.3123.21

0

10

20

30

40

50

60

70

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

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(No

v)

Year

Rural Urban Total

Mobile Services : Fuelling the growth

Nov-06

40.3522%

143.1178%

Fixed Line

Wireless

Nov-07

39.31

15%

225.46

85%

Fixed Line

Wireless

Total telephone connections as on November 2006: 183.46 millionNovember 2007: 264.77 million

Subscribers (in millions)Year Fixed line

including WLL(F)

Mobile (GSM+WL

L(M)

Total Tele density

March-97 14.54 0.34 14.8 1.57

March-00 26.65 1.9 28.55 2.81

March-01 32.71 3.58 36.29 3.52

March-02 38.33 6.54 44.87 4.28

March-03 41.48 13 54.48 5.1

March-04 42.84 33.69 76.53 7.04

March-05 46.19 52.22 98.41 9.11

March-06 50.18 90.14 140.32 12.8

March-07 48.87 157.96 206.83 18.46

Dec. 2007 43.3 226 269.3 24.04

Exponential Growth

Growth of Telephone Connections

206.

83

142.

07

98.3

7

76.5

3

54.6

3

22.8

1

28.5

3

36.2

9

44.9

7

0

50

100

150

200

250

1999 2000 2001 2002 2003 2004 2005 2006 2007

Year as on 31st March

No

. of

Co

nn

ecti

on

s (i

n

Mill

ion

s)

Wireline Wireless Total

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Number of fixed and wireless telephones

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Number of telephones (end of month)

• Figures in million• Source : Department of Telecommunication

  Mar-04 Mar-05 Mar-06 Mar-07 Dec-07

Fixed lines 40.92 41.42 40.23 40.77 39.25

CDMA 9.46 15.92 32.67 44.62 61.40

GSM 26.15 41.03 69.19 120.47 172.23

Wireless (CDMA & GSM)

35.61 56.95 101.86 165.09 233.63

Gross Total 76.53 98.37 142.09 205.86 272.88

Annual growth (%) 40.0 28.5 44.4 44.8  

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Railways

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Railways

• World’s second largest rail network.• Contributing industrial and economic development.• Since more than 150 years• Two major segments1.Freight traffic2.Passenger traffic

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Growth of manufacturing and rail freight traffic

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Analysis• Improvement in performance• From 2005-06 and 2006-07• Increased wagon load• Faster turn around time• More rational policy• 95mn tones of incremental traffic per year• 1100 revenue earning freight traffic• By the end of 11th Five year plan.

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Performance of the Indian Railways

   April-December Change overprevious

   year (per cent)

Particulars 2005-06 2006-07 2006-07 2007-08 2006-07 2007-08

1.Total revenue earning freight

           

traffic (mill.tonnes) 666.51 727.75 527.95 571.35 9.2 8.2

i)Coal 294.25 313.33 226.17 245.26 6.5 8.4

ii) Raw mat from steel plant(excl. coal) 51.35 53.22 39.12 40.35 3.6 3.1

iii)Pig iron & finished steel from

steel plants 17.74 21.04 15 16.24 18.6 8.3

iv)Iron ore for export 41.24 38.84 28.57 38.28 -5.8 34.0

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Contd...v)Cement 61.19 73.13 53.94 56.66 19.5 5.0

vi)Foodgrains 41.64 41.84 29.08 25.65 0.5 -11.8

vii)Fertilizers 32.65 34.26 26.61 28.01 4.9 5.3

viii)POL 33.45 31.69 25.89 26.27 -5.3 1.5

ix)Balance (other goods) 93 120.4 83.57 94.3 29.5 12.8

2.Net tonne kilometres (billion)

439.6 480.99 346.26 367.6 9.4 6.2

3.

Net tonne kms./ wagon/day(BG)

2,960 3,242 3,075 3,266 9.5 6.2

4.Passenger traffic orig. (million)

5,725 6,219 4,642 4,900 8.6 5.6

5.Passenger kilometres (billion)

616 695 520 551 12.8 6.0

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SPECIAL ECONOMIC ZONE (SEZ)

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SEZ

• Special economic zones

• Geographical area created with extended benefits

• Broadened Horizons

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Salient Features

• Opportunities for all

• Provisions for sector Specific SEZ

• 100% FDI Permitted

• Net foreign exchange earner

• Treatment of goods from DTA’s

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URBAN INFRASTRUCTURE

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Urban Infrastructure

• Includes three major components 1) Urban water and sanitation 2) Solid waste management 3) Urban transport• Most services are provided by Municipal

Corporations and Municipalities• 2001:- 285.35 mn total people- 28%• Expected to grow to 40% by 2020-21

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Projects during 1998-2008Project Total cost

(bn)Year of approval

Year of completion

Urban water and sanitation

Kerala water supply 24.15 2004-05 2009-10

Brihan Mumbai storm water drainage 18.00 2006-07 2009-10

Urban and environmental infrastructure facility

16.99 1999-00 2004-05

Rajasthan urban infrastructure development

15.41 1998-99 2009-10

Solid waste management

Kolkata improvement project 1.77 2005-06 2010-11

Cuttack urban services improvement 0.84 1997-98 2002-03

Urban transport

Delhi Metro project (phase1) 105.71 1997-98 2006-07

IT corridor in Chennai 17.00 2004-05 2008-09

Kerala state transport project 16.39 2002-03 2008-09

581998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

0

10

20

30

40

50

60

70

80

Central plan outlayActual expenditure

Budgetary support to MoUD

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Analysis

• Budgetary support to MoUD

• Increased by about two and a half times

• From 1998-99 to 2007-08

• External assistance led to major increase

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RURAL INFRASTRUCTURE

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Rural Infrastructure and Services Commons

• Two levels1. Infrastructure2. Services• I-level includes power,telecom,physical plant• S-level includes

market,education,health,informational

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Rural electrification pending status as on 31.12.07

Gujarat

Karnata

ka J&K

Himach

al Prad

esh

Madhya

Pradesh

West

Benga

l

Uttaranch

al

Chattisga

rhSik

kim

Mahara

shtra

Uttar Prad

esh

Manipur

Mizoram

Assam

Rajasth

an

Nagala

nd

Meghala

ya

Tripura

Arunach

al Prad

eshOris

saBihar

Jharkhan

d0

10

20

30

40

50

60

70

Percentage

Percentage

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Analysis

• 1,06,381 villages yet to be electrified• Mission power for all by 2012• Rajiv Gandhi Grameen Vidyutikaran Yojana• Access to electricity to every village by 2009

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WATER RESOURCES

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Water Resources

• Problems1.Poorly maintained pipe network 2.Inadequate assets3.Low quality of water4.Lack of clearly defined traffic policy5.Lack of financing mechanism

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Cont.

• Responsibility of urban local bodies• Fiscal authority rest with state govt.• Govt launched Jawaharlal Nehru National Urban Renewal Mission in 2005• In 1947 we had 6000 metric cubes of water

now 1,250• Dependent on ground water than surface

water

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Cont.

• Irrigation and water resources finance corporation to be set up.

• With initial corpus of 100 crore• Tamilnadu, Andhra Pradesh and Karnataka

have signed • $738 mn agreement with world bank• To repair renovate and restore water bodies.

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REFERENCES

• Indian economy by - Ruddar Datt, K.P.M Sundharam

• Indian Infrastructure reports• Indian Economy surveys• India Infrastructure

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THANK YOU

There was a time to die for the nation , now it is the time to live for the nation.