Energy Infrastructure and Communication

Topics: Coal, Natural gas, Petroleum Pages: 55 (18330 words) Published: December 2, 2012
Energy, Infrastructure and Communications


he Eleventh Five Year Plan emphasized the need for removing infrastructure bottlenecks for sustained growth. It, therefore, proposed an investment of US $500 billion in infrastructure sectors through a mix of public and private sectors to reduce deficits in identified infrastructure sectors. As a percentage of the gross domestic product (GDP), investment in infrastructure was expected to increase to around 9 per cent. For the first time the contribution of the private sector in total investment in infrastructure was targeted to exceed 30 per cent. 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. 11.2 An analysis of the creation of infrastructure in physical terms indicates that while the achievements in some sectors have been remarkable during the Eleventh Plan as compared to the previous FiveYear Plans, there have been slippages in some sectors. The success in garnering private-sector investment in infrastructure through the public-private partnership (PPP) route during the Plan has laid solid foundation for a substantial step up in private-sector funding in coming years. PPPs are expected to augment resource availability as well as improve the efficiency of infrastructure service delivery. During the Plan, administrative ministries and other government agencies have adopted the standardized model concession agreements and bid documents to streamline and accelerate the decision making in a fair, transparent, and competitive manner. Several state governments and local bodies have also rolled out PPP projects. 11.3 The Planning Commission, in its aproach paper has projected an investment of over ` 45 lakh crore (for about US $1 trilion) during the Twelfth Plan (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. Financing infrastructure will, therefore, be a big challenge in the coming years and will require some innovative ideas and new models of financing.




11.4 Performance of broad sectors and subsectors in key infrastructure areas in the current year presents a mixed picture. There was an improvement in growth in power, petroleum refinery, cement, railway freight traffic, passengers handled at domestic terminals, and upgradation of highways by the National Highways Authority of India (NHAI). Coal, natural gas, fertilizers, handling of export cargo at airports, and the number of cell phone connections showed negative growth. Steel sector witnessed moderation in growth. Growth for core industries and infrastructure services during April-December 2011-12 is given in Table 11.1. 11.5 The performance in core and infrastructure sectors is still to a large extent dependent on public sector projects. Ministry of Statistics and

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Economic Survey 2011-12

Table 11.1 : Growth in core industries and infrastructure services (in per cent) Sector 2007-08 2008-09 2009-10 2010-11 2011-12 (April-Dec.) 9.3 -2.7 5.7 -0.5 5.1 1.9 4.1 -8.8 4.7 0.4 -1.1 1.4 7.2 17.5 -51.0 8.9 -36.5

Power Coal Finished steel Fertilizers Cement Petroleum: a) Crude oil b) Refinery c) Natural gas

6.3 6.0 6.8 -8.6 7.8 0.4 6.5 2.1 9.0 12.0 7.5 19.7 11.9 20.6 38.3 164.6 12.5

2.5 8.2 13.2 -2.6 7.6 -1.8 3.0 1.4 4.9 2.2 3.4 -5.7 3.8 -12.1 80.9 30.9 17.3

6.8 8.0 3.2 13.2 10.1 0.5 -0.4 44.8 6.6 5.7 10.4 7.9 5.7 14.5 47.3 21.4 4.0

5.7 0.0 9.6 1.0 4.3 11.9 3.0 9.9 3.8 1.6 13.4 20.6 11.5 16.1...
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