Indian government started focusing extensively on Infrastructure sectors from Twelfth Five Year Plan (2012-2017) and with subsequent investment of approximately Rs 2.05 lakh crores in various social welfare projects like “Housing for All”, “Smart Cities Mission”, “Setu Bharatam”. Except for a few, the Indian government has also opened up its infrastructure sectors 100% through an automatic route which means the least interference from government bodies. Further, in the year 2019 budget, $1.45 trillion is earmarked by the government of India to be invested in its all Infrastructure sectors for the next five years i.e. 2020-2025. If you see in the last decade India has seen tremendous change in its economic and social development, which could happen because of remarkable measures taken by the Indian government to uplift its infrastructure sector. Indian economy is known to be the third-largest economy in the world in terms of purchasing power parity and one of the ‘fastest-growing economies’ in the world. Even the national income of India has gone up from Rs 1,210 in 2010 to Rs 2,130 in 2019.
List of Sector and Sub Sector of Infrastructure Project
As per the Department of Economic
Affairs following are the list of the sector and its sub-sector of
infrastructure projects in India:
Sr.No |
Category |
Infrastructure
Sub Sector |
1. |
Transport |
1.Roads
and Bridges 2.
Roads and Bridges Ports (excluding captive). 3.Inland
Waterways. 4.Airports,
Railway track. 5.tunnel,
viaducts, bridges Urban public transport. |
2. |
Energy |
1.
Electricity Generation (Grid). 2.
Renewable Energy e.g. Solar projects. 3.
Electricity Transmission Oil pipelines Oil/ gas LNG storage. 4.
Gas pipelines City gas distribution |
3. |
Communication |
Telecommunication
towers |
4. |
Water
and Sanitation |
1.Solid
Waste Management. 2.Water
Supply Pipelines. 3.Water
Treatment Plants Sewage collection, 4.treatment
and disposal system Irrigation (dams, channels, embankment, etc.) Storm Water
Drainage |
5 |
Social
and Commercial Infrastructure |
1.
Common Infrastructure for Industrial Parks. 2.
SEZs Cold Chains Hospitals 3.
Education Institutions 4.
Tourism |
What are different types of
Infrastructure Projects
Government Infrastructure Projects
(PPP): Infrastructure projects which are owned, developed and implemented
jointly by the Government and private sector, through a partnership arrangement
or Joint Venture Agreement e.g. Mumbai Metro1 having JV between Reliance Infra
(69%), Veolia Transport (5%) and MMRDA (26%).
Government Infrastructure Projects
(Traditional Procurement): Infrastructure projects which are owned, developed
and implemented by the Government. e.g. Delhi Mumbai Industrial Corridor (DMIC)
Private Sector Infrastructure
Projects: Infrastructure projects implemented by the private sector.
Details of Few Focused Infrastructure Sector
A. Road sector
The Road Sector is one of the most
dominant sectors under the transport category. According to the National
Transport Development Policy Committee Report of 2012, the road sector can
handle 69% of freight and 90% of passenger traffic across the country. A good
road network is a critical element of economic development.
A road network helps in connecting the
remotest part of the country with the highly developed part. If a robust
multi-modal transport system is built then the road network will act as a
lifeline by connecting the gaps between the ports, railways with the customers.
In 2017, a mega road development project has been approved by the cabinet known
as “Bharatmala Pariyojana Phase 1” to optimise the efficiency of the passenger
and freight movement throughout India.
Bharatmala Pariyojana Phase 1
consists of the development of 24,200 Km length of road with an investment of
Rs 1,50,000 crore. This project is subdivided into different projects such as
“Economic Corridors development – 9,000 km of length”, “Border Road development
– 2,000 km of length”, “Coastal and port connectivity roads- 2,000 km of
length” etc.
In 2019-20, India has become the
fastest highway developer in the world by increasing its capacity from 27kms
per day to 40 km per day. The Indian government has declared to build around
60,000 Km of the road under Bharatmala project and at the same time focusing on
upgrading the social infrastructure of the rural area by building high-quality
rural roads under the aegis of Pradhan Mantri Gram Sadak Yojana(PMGSY).
Who are the stakeholders involved in
road sector development
The state government has the
jurisdiction of building state highways, major district roads and on the other
hand construction and development of all the National highways which supports
40% of the traffic is the responsibility of the Central government. In the case
of state highways, land acquisition, Approval and clearance, Utility shifting,
Enforcement is done by the state government.
There are policies and regulatory
level framework prepared by the Ministry of Roads, Transport and Highway.
Implementing agency such as State
Pwd, NHAI etc. who issue tenders for building projects
Contractors, subcontractors,
concessionaires who successfully win the bid to build the project.
Financial stakeholders such as
banks, investors, sovereign funds etc.
Consultant such as technical,
financial, legal, technology experts etc.
Supplier/ equipment provider who
supplies raw materials to the contractor/subcontractors.
B. Railway sector
Indian Railways (IR) with over
68,000 route km makes it to be the third-largest network in the world. In
2018-19, Indian Railways carried 120 crore tonnes of freight and 840 crore
passengers making it the world’s largest passenger carrier and 4th largest
freight carrier. It has played a very important role in moving the Indian
economy and it is rightly said that Indian Railways is an integral part of the
growth engine of the country.
The railway network is ideal for
long-distance travelling and movement of bulk raw materials from the site to
port or market area in an efficient way. The Indian government is diligently
focusing on improving the existing railway infrastructure and simultaneously
building new infrastructure for future developments.
Some of the major achievements in
the Railway Sector
Building indigenously fastest train
in India named as Vande Bharat and T-18 cutting travel time by 50%.
To protect the environment, Indian
Railways Commissioned first of its kind state-of-the-art 12,000 HP electric
locomotive to help power a green and clean railway. The world’s first-ever
conversion of a diesel locomotive into electric will further our aim to become
the world’s largest electrified rail network.
Indian Railway Stations Development
Corporation Limited (JV between Rail land development and IRCON) is
transforming all the key railway stations into the commercial hub by utilizing
unused land parcels. It is helping in uplifting railways stations to the
standard of international airports. Beautification of 65 railway stations has
been done through using local art.
Indian Railway has built the world’s
tallest rail bridge in Jammu & Kashmir. The bridge height is 395m above the
river and has a length of 1315m. This critical project has helped in connecting
Jammu with Kashmir through a rail network which directly helps in cutting
travelling time.
Few of the initiative taken by the
Indian government
The Government of India is
considering a High-Speed Rail corridor project between Mumbai and Nagpur.
The Indian government has increased
the scope of PPP beyond maintenance and other supporting roles. It has expanded
its scope to the redevelopment of stations, building DFCs etc.
The Government of India is also
working on the “National Rail Plan” which enables the country to integrate its rail
network with order modes of transportation and develop a multi-modal
transportation network.
National High-Speed Rail Corporation
Ltd a JV formed between the Central government and two states namely
Maharashtra and Gujarat to build high-speed rail infrastructure between Mumbai
and Ahmedabad. The Indian government has signed an agreement with the
government of Japan to implement the vision of NHSRC with financial assistance
that would cover 81% of the total project cost. The cost of the project is US
$15 billion.
Two dedicated Freight Corridors i.e.
Western corridor and Easter corridor has been implemented. These DFCs will
increase the volume as well as share in freight transportation.
One of the major initiatives is the
electrification of all routes to save on the imported fuel costs and improve
running speed. IR launched “Mission Electrification” in 2017 to electrify 100%
or the remaining 38,000 km of the broad gauge network in five years by
2022-2023.
In 2019-20, IRCTC was awarded to run
the high-speed train as a private player. Recently, PPPAC has approved to allow
private players to run 150 trains on 100 routes.
C. Renewable energy sector
India is one of the most after
sought for the renewable energy market in the world. India is fourth in wind
power, fifth in solar power and ranked fourth in renewable power installed
capacity as of 2019.
India has clarified its intention
through Intended Nationally Determined Contribution (INDC) to the UNFCCC, its
goal of installing 175 gigawatts (GW) of renewable power capacity by 2022 by
setting a new target to increase the country’s share of non-fossil-based
installed electric capacity to 40% by 2030.
As of now, 23% of total power
generating capacity is through renewable energy sources and 63 % is through
thermal energy. The Indian government has aligned itself to be self-sufficient
in fuel generation and that too through non-fossil-based fuels.
As of now, the installed renewable
energy capacity stood at 87.26 GW, of which, solar and wind comprised 34.81 GW
and 37.74 GW, respectively. Biomass and small hydropower constituted 9.86 GW
and 4.68 GW, respectively. In 2019, India installed 7.3 GW of solar power across
the country to be positioned as the third-largest solar market in the world.
India has a potential capacity of 363 GW which can be harnessed by developing
policies focusing on the renewable energy sector.
International Solar Alliance (ISA)
is a reflection of India’s commitment to accelerate the development and
deployment of solar energy for achieving universal energy access at an
affordable rate. As on date, 84 countries have signed the Framework Agreement
of the ISA. Of these, 62 countries have ratified the same.
Few of initiatives taken by the
government
To add 30 GW of renewable energy
capacity in the desert area of Gujarat and Rajasthan.
Rajasthan Government, in Budget
2019-20, exempted solar energy from electricity duty and focussed on the utilization
of solar power in its agriculture and public health sectors.
Hydropower policy for 2018-28 was
drafted for hydro projects in the country.
Three solar parks Kurnool (1000 MW)
in Andhra Pradesh and Bhadla-II (680 MW) in Rajasthan and Pavagada (2000 MW) in
Karnataka are fully operational. Largest Solar Park of 2,000 MW in Pavagada is
under installation. The target of the Solar Park Scheme is to develop at least
50 solar parks with an aggregate installed capacity of 40,000 MW of solar power
by 2021-22.
The Ministry and Renewable Energy
(MNRE) has decided custom and excise duty benefits to the solar rooftop sector,
lower of setting up as generate power, thus boosting growth.
Indian Railways is taking increased
efforts through sustained energy efficient measures and maximum use fuel down
emission level by 33 per cent by 2030.