Wednesday, April 25, 2012

eCONOMIC SURVEY ON INFRASTRUCTRE INVESTMENT


·         Total investment

in infrastructure during the Eleventh Plan is estimated to increase to more than 8

per cent of GDP in the terminal year of the Plan --higher by 2.47 percentage

points as compared to the Tenth Plan. The private sector is expected to be

contributing nearly 36 per cent of this investment.



·         The Planning Commission, in its approach paper has projected an investment of over ` 45 lakh crore (for about US $1 trilion) during the TwelfthPlan (2012-17). It is projected that at least 50 per

cent of this investment will come from the private

sector as against the 36 per cent anticipated in the  Eleventh Plan and public sector investment will

need to increase to over ` 22.5 lakh crore as against an expenditure of ` 13.1 lakh crore during the

Eleventh Plan.



Table 11.1 : Growth in core industries and infrastructure services (in per cent)



Sl. Sector 2007-08 2008-09 2009-10 2010-11 2011-12 No. (April-Dec.)



1 Power 6.3 2.5 6.8 5.7                     9.3

3 Finished steel 6.8 13.2 3.2 9.6     5.7

4 5 Cement 7.8 7.6 10.1 4.3 5.1

7 Railway revenue-earning freight traffic 9.0 4.9 6.6 3.8 4.7



6 Petroleum:

a) Crude oil 0.4 -1.8 0.5 11.9 1.9

b) Refinery 6.5 3.0 -0.4 3.0 4.1

c) Natural gas 2.1 1.4 44.8 9.9 -8.8



NEGATIVE

10 Telecommunications: Cell phone connections 38.3 80.9 47.3 18.0 -51.0

11 Roads: Upgradation of highways*

i) NHAI 164.6 30.9 21.4 -33.3 8.9

ii) NH(O) & BRDB 12.5 17.3 4.0 -6.8 -36.5



2 Coal 6.0 8.2 8.0 0.0                      -2.7

Fertilizers -8.6 -2.6 13.2 1.0         -0.5





NH(O) stands for National Highways Organization and BRDB for the Border Roads Development

Board(BRDB).









Thermal power generation during April-December 2011.

2010 2011

                                            Billion KWh)         Growth (%)



Coal                     423.554             9.17

Lignite                19.567                 3.82

Gas turbine        72.198                -4.0 66

Diesel                 1.797                 -13.07 - -

Thermal total     517.1                   166.65 72.88 72.10





Power Generation by Utilities (Billion KWh)

                                               April-December     Growth

                                               2010-11 2011-12     (per cent)

Power generation                   653.446                  9.23



Hydroelectric                              107.                    19.23

Thermal                                        517                     6.65

Nuclear                                          23.790               33.24

Bhutan IMPORT                            5.028                -6.19



·         The deficit in power supply in terms of peak availability and total energy availability declined during the Eleventh Five Year Plan



The Eleventh Five Year Plan initially envisaged



1.    a capacity addition of 78,700 MW, of which 19.9 per cent was hydro, 75.8 per cent thermal, and the rest nuclear.



2.    Mta , the target was revised to 62,374 MW with



                       Thermal  50,757 MW,             

                        Hydro      , 8,237, and

                        Nuclear     3,380



A capacity addition of 46,669.7 MW has so far been achieved until 15 January 2012.

The Ministry of Power launched an initiative for development of coal-based super critical UMPPs,

each of about 4000 MW capacity, under Case II bidding route. Four UMPPs at



Sasan in Madhya Pradesh,

Mundra in Gujarat,

 Krishnapatnam in Andhra Pradesh, and Tilaiya in Jharkhand have already been transferred to the identified developers and are at different stages of implementation. One unit of 800 MW of the Mundra UMPP is expected to be commissioned in the Eleventh Plan.





Hydro

During the Eleventh Five Year Plan, initially hydro capacity addition of 15,627 MW was planned

which at the time of MTA of the plan was revised to 8,237 MW. Of this, 5,302 MW has been added till

31 December 2011.

·         The main reasons for slow development of hydro-power include difficult and inaccessible potential sites, difficulties in land acquisition, rehabilitation, environmental and forestrelated issues, inter-state issues, geological surprises, and contractual issues.





COAL



·         The lower growth in production during the current year and last year is primarily due to environmental restrictions, application of the comprehensive environmental pollution index (CEPI),

·          non-availability of forestry clearance against some of the projects,poor law and order situation in some states andexcessive rainfall in the coal-mining areas.

·         Lower domestic production increased dependency on imports and in 2010-11, 68.9 MT of coal was IMPORTED





Rural Electrification

11.22 Under the Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY), 1,00,917 villages have been

electrified and free electricity connections releasedto 179.41 lakh below poverty line (BPL) households

up to 31 December 2011.

·         . During the Eleventh Plan period, as on 31 December 2011, 343 projects have  been sanctioned for implementation at a cost of `16,784.06 crore





PETROLEUM



Shale Gas

11.27 Shale gas can emerge as an important new source of energy in the country. India has several

shale formations which seem to hold shale gas. These formations are spread over several

·         sedimentary basins such as Cambay, Gondwana, Krishna-Godawari, and Cauvery. 

·          

·         The Directorate General of Hydrocarbons (DGH) has initiated steps to identify prospective areas for shale gasexploration. A multi-organizational team (MOT) of DGH,

·          Oil and Natural Gas Corporation (ONGC), Oil India Limited (OIL), and Gas Authority of India Limited (GAIL) has been formed by the government for analysing the existing data set and suggesting

·         the methodology for shale gas development in India. Further, the Ministry of Petroleum and Natural Gas has signed a memorandum of understanding (MoU) with the USA on 6 October 2010 for assessment of shale gas resources in India, imparting training to Indian geo-scientists and engineers, and



Rajiv Gandhi Gramin LPG Vitaran Yojana

(RGGLVY)





Vision 2015 adopted for the LPG sector inter alia focuses on raising the population coverage of

LPG in rural areas and areas where LPG coverage is low. The RGGLVY for small size LPG distribution

agencies has been launched on 16 October 2009. Under this scheme 5.5 crore new LPG connections

are to be released to cover 75 per cent population as LPG users by 2015.







RAILWAYS



11.41 The Ministry of Railways Vision 2020 document envisages the railway sector's share in

the GDP

·         to increase from the existing level of 1 per cent to about 3 per cent and its revenues to grow by 10 per cent annually over the next ten years.

·         Some of the major goals set for 2020 in the document include (a) laying of 25,000 km of new Lines;

·          (b) quadrupling of the 6,000 km network with segregation of passenger and freight lines;

·          (c) electrification of 14,000 km;

·         (d) completion of gauge conversion;

·          (e) upgradation of speed to 160-200 kmph for passenger trains; Government of Japan   

·         (f) construction of 2,000 km of high-speed rail lines.



A High Level Safety Review Committee was constituted on 16 September 2011 under the chairmanship of Dr Anil Kakodkar, former Chairman, Atomic Energy Commission and Secretary, Department of Atomic Energy, to look into all technical and technology-related aspects in connection with safe running of train services in the country.



 Adarsh stations



Till December 2011 450 Adarsh stations had been completed with basic facilities

·         such as drinking water,adequate toilets, catering services, waiting rooms and dormitories especially for lady passengers.

·         The computerized passenger reservation system (PRS) of Indian Railways is the largest passenger reservation network in the world.

A new concept of development of MFCs Multifunctional Complex

(MFC) with budget hotels was introduced in the Rail Budget 2009-10, so that important facilities may

be available to rail users in a separate complex in the vicinity of the circulating area on station premises

BY NOW THERE ARE 22 OF THEM.





The DFC Project envisaging



·         a Western DFC (1,499 km) from Mumbai to Rewari/Dadri to cater largely to the container transport requirement and an

·         Eastern DFC (1,839 km) from Dankuni to Ludhiana, largely to serve coal and steel traffic

·         is being implemented by the Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL), a PSU under the Ministry of Railways. 

·         The project is being implemented through a mix of bilateral/ multilateral debt, budgetary support, and PPP, with a debt equity ratio of 2:1.

·         Major portions of Western Corridor are being funded with Japanese assistance and

·         Eastern Corridor with World Bank assistance. Construction work has commenced in both the corridors. The corridors are targeted for completion in the terminal year of the Twelfth Plan.

·          

Policy Initiatives for attracting private capital

·         Once finalized, the policy would replace the existing Railways Infrastructure for Industry Initiative (R3i)  and Railways Policy for Connectivity to Coal and Iron Ore Mines (R2CI) policies for private investments in rail connectivity projects







ROADS

National Highways Development Project

(NHDP)

11.54

·         About 22 per cent of the total length of National Highways (NHs) is single lane/ intermediate lane,

·          53 per cent is two lane standard, and the

·         balance 25 per cent is four lane standard or more. 

·         In 2011-12, the achievement under various phases of the NHDP up to December, 2011 has been about 1,250 km and projects have been awarded for a total length of about 4,374.9 km.

Financing of the NHDP

11.55 A part of the fuel cess imposed on petrol and diesel is allocated to the NHAI for funding the

implementation of the NHDP. The NHAI leverages the cess flow to borrow additional funds from the

debt market.



·         Till date, such borrowings have been limited to funds raised through 54 EC (capital gains tax exemption) bonds and the short-term overdraft facility.

·         Government has also taken loans fo R financing projects under the NHDP from the World bank (US$ 1,965 million), Asian Development Bank (US$ ,1605 million) and Japan Bank for International Cooperation (32,060 million yen) which are passed

·          

Special Accelerated Road Development Programme for North-East region (SARDP-NE)

·         The SARDP-NE aims at improving road connectivity to state capitals, district headquarters,and remote places of the north-east region.

·          It  envisages two /four laning of about 4,798 km of NHs and two laning/ improvement of about 5,343 km of state roads.

·          This will ensure connectivity of 88 district headquarters in the north-eastern states through two-lane NHs / two-lane state roads.

·          The programme has been divided into Phase A and Phase B and the Arunachal Pradesh package of Roads & Highways.

Initiatives for development of the entire NH network to minimum acceptable two-lane standards

·         11.59 The Eleventh Plan had envisaged accelerated efforts to bring the NH network up to

·         a minimum two-lane standard by the end of the Twelfth Plan and for removing existing deficiencies.

·         The MoRTH has proposed a World Bank loan and budgetary allocations to reach this goal by December 2014.

Development of roads in Left Wing Extremism (LWE)-affected areas









Construction of rural roads under the Pradhan Mantri Gram Sadak Yojna

(PMGSY)

11.64 The PMGSY was launched to provide single all-weather road connectivity to eligible unconnected

habitations having population of 500 persons and above in plain areas and 250 persons and above in

hill states, tribal (Schedule V) areas, desert (as identified in the Desert Development Programme)

areas, and LWE-affected districts as identified by the Ministry of Home Affairs.

·         Bharat Nirman proposes to provide new connectivity to a total of 54,648 habitations, involving construction of 1, 46,184 km of rural roads

CIVIL AVIATION

·         Air passenger and cargo traffic 11.66 Air traffic in India continues to register

·         significantly higher rates of growth averaging 18.5 per cent in the last seven years.

TELECOMMUNICATIONS

·         11.69 The Indian telecom sector has witnessed tremendous growth over the past decade. Today,

·         the Indian telecom network is the second largest in the world after China.

·         Teledensity is an important indicator of telecom penetration in the country. Teledensity has increased from 18.2 per cent in March 2007 to 76.86 per cent in December 2011. 

·         Delhi (235.6 per cent), Mumbai (188.95 per cent), Kolkata (168.45 per cent), Chennai (170.18 per cent), and Himachal Pradesh (118.63 per cent) have high teledensity,

·         in some circles suchas Bihar (47.17 per cent) and Assam (45.85 per cent), it is very low.

·         However, broadband has lagged behindthe growth of telephones in India. Special efforts are being made to increase its penetration, especially in rural and remote areas

·         Recognizing the vital role that information communication technology (ICT) can play in the empowerment of rural women, a scheme called Sanchar Shakti has been launched in March 2011 for pilot projects aimed at facilitating access of self-help groups (SHGs) to ICTenabled services. Financial support from the USO Fund is to be provided towards value added services  VAS) subscriptions for SHGs in accordance with the provisions of underlying subsidy agreements.

·          At present memorandums of understanding (MoUs) have been signed forproof of concept (PoC) for nine mobile VAS  projects in the states of Tamil Nadu, Kerala, Maharashtra, Uttar Pradesh, Uttarakhand, Andhra Pradesh, Rajasthan, and the Union Territory of Puducherry.



he Universal Service Obligation Fund (USOF) was established with the fundamental objective of providing people in rural and remote areas access to 'basic' telephony services at affordable prices.



OTHER PROJECT.

1.    broadband connectivity Optical fibre cables  (OFC) in rural and remote areas.

1.     provide sufficient back-haul capacityto integrate voice and data traffic from thaccess network in rural areas to their corenetwork by strengthening the OFC network

1.    will provide connectivity to various public institutions like gram panchayats, primary health centres PHCs), and schools in rural areas



Box 11.1 : Draft National Telecom Policy (NTP)

2.      The Government is in the process of finalizing the new National Telecom Policy. Draft of the policy was circulated in 2011

3.      for consultation with various stake holders. Views/Comments from these stake holders have been received and the same

4.      are under consideration. NTP is likely to be in place by June 2012. The Draft NTP proposes to provide a stable, rational,

5.      and objective policy regime over the next decade or so and contains the following salient features:

6.      To make available secure, reliable and affordable voice telephony and high speed broadband services to every citizen

7.      in India with special focus on rural and remote areas.

8.      To improve the broadband experience by enhancing the speed of delivery.

9.      To make India a global hub of manufacturing for all electronic products including telecom equipment with substantial

10.  value addition with in the country and safeguard security concerns of the nation.

11.  For simplification and rationalisation of licensing regime, transparent system for allocation of spectrum and enable

12.  efficient usage of spectrum.

13.  For discovery of price of spectrum through market related processes.

14.  To achieve One Nation- Full Mobile Number Portability.

15.  To enable free roaming throughout the country.

16.  To harness full potential of mobile phones for enabling provision of citizen centric services related to education, health,

17.  employment, agriculture, entertainment, banking & insurance services, skil upgradation, vocational training etc.

18.  To encourage indigenous manufacture of cost effective mobile devices.

19.  The faster roll out of high speed and reliable broadband in rural and urban areas will enable decentralised governance,

20.  participative democracy and delivery of basic services such as health and education to every citizen of the country. The

21.  thrust on manufacturing will promote entrepreneurship, create more job opportunities, reduce imports and improve

22.  security. Efficient usage of scarce resources like spectrum will result in better quality of service to the customers at

23.  affordable cost.

24.  The new policy regime will be beneficial to end consumers/citizens, Telecom Service Providers, Value Added Service

25. Providers, Government and Manufacturers.



MARITIME PORTS



·         FDI up to 100 per cent under the automatic route is permitted for construction and maintenance of ports.

·         URBAN INFRASTRUCTURE

·         Urban Infrastructure and Governance

·         11.83 The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has been launched bythe Ministry of Urban Development for a seven-year period (i.e. up to March 2012) to encourage citiesto initiate steps to bring about improvements in a phased manner in existing civic service levels.

·         The components under the sub-mission Urban Infrastructure and Governance (UIG) include urban renewal, water supply (including desalination plants), sanitation, sewerage and solid waste management, urban transport, development of heritage areas, and preservation of water bodies.

·         Revised allocation for

·         . The JNNURM

·         has also emphasized the implementation of the following three mandatory pro-poor key reforms to enhance the capacity of urban local bodies (ULBs):

·         Internal earmarking within local body budgets for basic services to the urban poor,

 Internal earmarking within local body budgets

for basic services to the urban poor

Earmarking of at least 20-25 per cent of developed land in all housing projects (both

public and private agencies) for the economically weaker sections (EWS)/ low income groups

(LIG) category

Implementation of a seven-point charter:

·         Provision of seven basic entitlements/services

No comments:

Post a Comment