Introduction to Infrastructure

Dr.PravinJadhav
Agenda

■ What is infrastructure?

■ Types of infrastructure

■ The role of infrastructure

■ The infrastructure crisis

What is Infrastructure?

■ There is no single definition for the term

“infrastructure”. It is a term used in a variety of
disciplines
■ The “Merriam Webster” Dictionary defines
infrastructure as “The underlying foundation or
basic framework (as of a system or
organization)”
■ “The physical components of interrelated
systems providing commodities and services
essential to enable, sustain, or enhance societal
living conditions”
What is Infrastructure?

• Infrastructure are the basic systems that undergird the

structure of the economy.
• Examples of infrastructure include transportation
facilities, telecommunications networks, and water
supplies.
• Large scale infrastructure is usually produced by the
public sector or publicly regulated monopolies, but at
smaller scales infrastructure can often be produced by
private firms or through local collective action.
• As an investment, infrastructure tends to be less volatile
than some other asset classes and is sometimes sought as
an investment.
Infrastructure is the complex foundation on
which the world’s economy is built. Oil and
gas power it. Water supply sustains it.
Roads and rail move it. Airports and
shipping terminals connect it. Information
technology networks inform it.
Economic Survey definition
of Infrastructure
As per Economic survey (2000-2001), the following sectors :
• Power, Electricity Generation
• Coal Production
• Petroleum production, crude oil and refinery
• Cement production
• Railways
• Ports
• Civil Aviation
• Roads
• Telecommunication
Ministry of Statistics and
Programme Implementation
• Construction
• Electricity generation, transmission and distribution
• Gas generation and distribution through pipes
• Water works and supply
• Non-conventional energy generation and distribution
• Railway tracks, signalling system and stations
• Roads and bridges, runways and other airport facilities
• Telephone lines and telecommunication network
• Pipelines for water, crude oil, oil etc
• Waterways
• Port facilities
• Canal networks and irrigation
• Sanitation and Sewerage
Types of Infrastructure
• Physical Infrastructure :
– Airports, Roads, Electricity etc.

• Social Infrastructure :
– Schools, Hospitals etc.

• Institutional Infrastructure :
– Banking system, tax collection mechanism, legal system etc.

• Industrial Infrastructure –
– Industrial Parks, Special Economic Zones etc.
Attributes of
Infrastructure

■ Rather than describing infrastructure through a single

definition, it might be more helpful to describe
infrastructure through a set of characteristics that are
attributed to it. Some of these characteristics that are
popularly associated with infrastructure are:
□ Infrastructure facilities are generally available to large groups of
people
□ Infrastructure helps deliver essential services for the functioning
of an organization or society
□ Infrastructure helps achieve economic and social objectives
□ Infrastructure is the base upon which society and its activities
rest
Categories of Public
Infrastructure Projects
Public infrastructure projects are planned for the following four broad
categories:
• The development of new projects or the provision of additional
capacity or capability of an existing project
• The rehabilitation, reconditioning, and/or reconstruction of existing
facility without changing the capacity of capability of the facility
• The routine maintenance and operation of municipal infrastructure
systems
• Projects that modify the operations and management of an existing
facility to improve its efficiency, extend its useful life, introduce
alternative strategies, or incorporate new technologies to maximize
the operational capacity of the facility.
 Infrastructure planning
steps
1) Establishment of goals and objectives- broad policies , long-run plans etc
2) Problem identification and analysis- data collections, demand-supply analysis, use of
resources

3) Solution identification and impact assessment

4) Formulation of alternatives and analysis
5) Recommendations- priorities and schedule of implementation
6) Decisions
7) Implementation
8) Operation and Management
The Role of Infrastructure

■ The importance of infrastructure is two-fold

□ Infrastructure is instrumental in promoting

economic growth

□ Infrastructure also plays a role in alleviating

poverty
Infrastructure and Global
Competitiveness
Competitiveness and Income
Infrastructure Index
Infrastructure, Economic
Growth and poverty reduction

Economic Poverty
Growth Reduction
Transportation Faster access to destinations, More reliable access to markets so
increase in productivity that fresher goods can be sold at
lower wastage levels

Water and Sanitation Incentives for construction of Improved health, reduction in

facilities, infrastructure and health related spending,
residential infrastructure, which in potential increase in income
turn promote economic growth savings

Telecommunications Improved access and transfer of Increased access to information

data, leading to reduced travel times leading to improved ability to make
and increases in productivity decisions on issues like selling
price of produce etc

Energy Reliable and abundant power 24 hour electricity increase the

enables setting up of industries and duration of the productive working
residences that create jobs, day, thereby augmenting income,
manufacture products and promote increasing agricultural yields etc.
economic growth
The Infrastructure Crisis

■ Despite the importance of infrastructure for economic and social well-being,

we are faced with several problems
■ Infrastructure in developed countries is old, unreliable, inefficient and in
need of replacement.
□ The USA is embarking on a major plan relating to infrastructure spending
■ In developing countries, infrastructure is often not available
□ Large portions of urban and rural populations in developing countries have
inadequate access to water and sanitation
□ Power supply is non-existent or unreliable and people are faced with frequent
power-cuts
□ Quality of road infrastructure is often bad, leading to long travel times and
increased vehicle maintenance costs. Width of roads is also often a constraining
factor leading to traffic jams and blocks.
□ Several of these problems currently hold true for many areas in India as well.
■ This is therefore a golden opportunity for engineers with technical as well as
managerial and policy level knowledge of these issues, since there is a
huge demand for such people to enter the workforce and solve the worlds
infrastructure inadequacies.
Why do we have so many problems
with infrastructure?

■ This particular question and ways in which to solve it will

the focus of this entire course. It is therefore impossible
to answer this question right away. Before we conclude
this session, we list out a few of the causes for the failure
to provide adequate infrastructure
□ Lack of funds
□ Lack of implementation and management capabilities
□ Corruption, bureaucracy and unfair competition
□ Land acquisition issues involving dealing with displaced people
and special interest groups