DR.

SHAKUNTALA MISRA NATIONAL

NATIONAL UNIVERSITY
FACULTY OF LAW
LUCKNOW

TOPIC : Infrastructure Development

COURSE : b.com.llb(H) 8 SEMESTER

SUBMITTED BY SUBMITTED TO
Himanshu kumar Shail sir
Faculty of law
ACKNOWLEDGEMENT
I would like to express my special thanks gratitude my teacher shail sir for their able guidance and support in
complete my project .

Himanshu kumar
 Infrastructure development
is the construction of basic foundational services in order to stimulate economic growth and quality of life
improvement. Most advanced economies have gone through periods of intensive infrastructure building that
have improved the efficiency and competitiveness of regions.

Indian infrastructure in india

Introduction

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling
India’s overall development and enjoys intense focus from Government for initiating policies that would
ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power,
bridges, dams, roads, and urban infrastructure development.

Market Size

According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDIs in the construction
development sector (townships, housing, built up infrastructure and construction development projects) and
construction (infrastructure) activities stood at US$ 25.93 billion and US$ 23.99 billion, respectively, between
April 2000 and December 2020.

Government Initiative and investment

In Union Budget 2021, the government has given a massive push to the infrastructure sector by allocating Rs.
233,083 crore (US$ 32.02 billion) to enhance the transport infrastructure. The government expanded the
‘National Infrastructure Pipeline (NIP)’ to 7,400 projects. ~217 projects worth Rs. 1.10 lakh crore (US$ 15.09
billion) were completed as of 2020. The key highlights of the Budget 2021 are as follows:

In March 2021, the government announced a long-term US$ 82 billion plan to invest in the country’s seaports.
~574 projects have been identified, under the Sagarmala project, for implementation through 2035.

In April 2021, the Ministry of Power (MoP) released the draft National Electricity Policy (NEP) 2021. The MoP
created an expert committee including members from state governments, the Ministry of New and Renewable
Energy (MNRE), NITI Aayog and the Central Electricity Authority (CEA).

In March 2021, the Parliament passed a bill to set up the National Bank for Financing Infrastructure and
Development (NaBFID) to fund infrastructure projects in India.

Indian railways received Rs. 1,10,055 crore (US$ 15.09 billion), of which Rs. 1,07,100 crore (US$ 14.69 billion) is
for capital expenditure.
Rs. 1,18,101 crore (US$ 16.20 billion) has been allocated towards road transport and highway sector.

In Budget 2021, the government announced the following interventions under Pradhan Mantri Aatmanirbhar
Swasth Bharat Yojana (PMANSY):

An outlay of Rs. 64,180 crore (US$ 8.80 billion) over six years to strengthen the existing ‘National Health Mission’
by developing capacities of primary, secondary & tertiary care and healthcare systems & institutions to detect
and cure new and emerging diseases.

This scheme will strengthen 17,000 rural and 11,000 urban health and wellness centres.

Setting up integrated public health labs in all districts and 3,382 block public health units in 11 states.

Establishing critical care hospital blocks in 602 districts and 12 central institutions.

Strengthening the NCDC (National Centre for Disease Control) to have five regional branches and 20
metropolitan health surveillance units.

Expanding integrated health information portal to all states/UTs.

Rolling out the pneumococcal vaccine, a ‘Made in India’ product, across the country.

Rs. 35,000 crore (US$ 4.80 billion) has been allocated for COVID-19 vaccines in FY22.

The government announced Rs. 18,998 crore (US$ 2.61 billion) for metro projects.

Mega Investment Textiles Parks (MITRA) scheme was launched to establish world-class infrastructure in the
textile sector and establish seven textile parks over three years.

The government announced Rs. 305,984 crore (US$ 42 billion) over the next five years for a revamped, reforms-
based and result-linked new power distribution sector scheme.

Road Ahead

The infrastructure sector has become the biggest focus area for the Government of India. India plans to spend
US$ 1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. The
Government has suggested investment of Rs. 5,000,000 crore (US$ 750 billion) for railways infrastructure from
2018-30.

India and Japan have joined hands for infrastructure development in India's Northeast states and are also setting
up an India-Japan Coordination Forum for Development of Northeast to undertake strategic infrastructure
projects for the region.
Note: Conversion rate used for April 2021 is Rs. 1 = US$ 0.01334

References: Media Reports, Press releases, National Infrastructure Pipeline, Union Budget 2021-22, Ministry of
Commerce and Industry, Economic Survey-2020-21

What is Infrastructure Development

1.It involves improvement of the quality of the various components of infrastructure, such as roads, power,
ICT, water and sanitation. Learn more in: The Impact of Infrastructure on Growth and Development: The Case
of Ghana, 1986-20162.Infrastructure has been used as an umbrella term for many activities.The development
of a country’s infrastructure is vital to the growth of its sectors and the overall economy. The infrastructure
sector primarily comprises of electricity, roads, telecommunications, railways, irrigation, water supply and
sanitation, ports and airports, storing facilities, and oil and gas pipelines. Learn more in: Trade Liberalization,
Infrastructure Development, and FDI in India and China

3.Infrastructure is considered to be the key for promoting sustainable and inclusive economic growth. So a
great deal of policy emphasis has been placed on infrastructure development for augmenting growth,
productivity and quality of life of the citizens of the developing country.

In this article we will discuss about Infrastructure development in India. After reading this article you will learn
about: 1. Subject-Matter of Infrastructure 2. Growth of Infrastructure during the Planning Period 3. Recent
Strategy Adopted by the Government.

Subject-Matter of Infrastructure:

Development of a country depends very much on the availability of its infrastructural facilities. The
development of agriculture and industry depends solely on its infrastructure. Without having a sound
infrastructural base a country cannot develop its economy. More important and difficult job in the
development process of the country is to provide the basic infrastructural facilities.

These infrastructural facilities include various economic and social overhead viz., Energy (Coal, Oil, Electricity),
Irrigation, Transportation and Communication, Banking, Finance and Insurance, Science and Technology and
other social overheads like education, health and hygiene.

All these facilities jointly constitute the infrastructure of the country. Like other countries, the developmental
process of India put much emphasis on the growth of infrastructure.

In this connection Dr. V.K.R.V. Rao observed, “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 preceded, accompanied and
followed by progress in infrastructure, if we are to fulfil our declared objectives of a self-accelerating process
of economic development.”

However, the prosperity and progress of a country largely depends upon the development of agriculture and
industry. While the agricultural development requires facilities like irrigation, power, credit, transportation
etc. but the industrial production also needs machines, equipment, energy, skilled manpower, management
personnel, marketing, banking and insurance facilities, transportation services etc.

All these facilities and services helping the agricultural and industrial sector jointly constitute the
infrastructure of a country. During the last 200 year or more, industrial and agricultural revolutions in England
and other countries were accompanied by large scale development of infrastructural facilities.

Growth of Infrastructure during the Planning Period:

In Indian planning high priority was given to the development of infrastructure from the very beginning, thus a
huge amount of fund was allocated in different plans for building various infrastructural facilities. In the First
Six Plans, about 55 to 61 per cent of the total plan outlay was devoted to the development of infrastructure.

Seventh Plan allocated about 63 per cent of the total plan outlay to infrastructure. Eighth plan also allocated
about 16.1 per cent of the total outlay to infrastructure. Table 10.1 shows the allocation of outlay of the Sixth,
Seventh and Eighth plan to infrastructure.

Due to continuous heavy investment of the infrastructural projects during the four decades of planning,
infrastructural facilities in the country has recorded a phenomenal increase. Accordingly, the gross irrigated
area has increased significantly from 23 million hectares or 17 per cent of gross cropped area in 1950-51 to
89.4 million hectares or 53 per cent in 1995-96.

Similarly, power generation also increased from 5 billion kWh in 1950-51 to 380 billion kWh in 1995-96.
Similarly, tremendous growth of other infrastructural facilities has also been recorded during these plan
periods.
Allocation of Outlay of Infrastructure

This is mainly due to this rapid development of these infrastructural facilities in India. The agricultural
production has recorded a three-fold increase and industrial output has also recorded more than seven fold
increase during these four decades of planning.

Whatever infrastructural facilities that have been developed in the country have mostly benefitted the urban
areas and the richer section of the population has derived maximum benefit out of it.

Recent Strategy Adopted by the Government for Infrastructure Development:

In the past, the responsibility for providing infrastructure services was vested solely with the Government. This
was mostly due to a number of reasons including lumpiness of capital investments, long gestation periods,
externalities, high risks and low rates of return.

But in recent times the old paradigm of infrastructure being a public sector monopoly has been challenged by
fiscal constraints and technological innovations. Limits on budgetary allocations and public debt, and the
dismantling of the allocated system of credit have catalysed the encouragement of private entry in
infrastructure provision.

The Government has recently announced guidelines for private investment in highway development through
the Build Operate Transfer (BOT) route. Besides simplifying procedures and providing more financial
concessions, these measures would facilitate preparation of detailed feasibility reports, clearances for the
right way of land, relocation of utility services, resettlement and relocation of the effected establishments,
environmental clearance and equity participation in the highway sector. The Government has also approved
clear and transparent guidelines for encouraging private sector participation in ports and is in the process of
setting up a tariff regulatory authority in 11 major ports.
New Initiatives for Infrastructure Development, 1999-2000 and thereafter:

Following are some of the new initiatives undertaken by the Government for the development of
infrastructure sector:

General Measures:

The Government has introduced certain general measures:

(a) Introduction of uniform tax holiday for 15 years for all infrastructure projects;

(b) Creation of Foreign Investment Implementation Authority to smoothen flow of FDI into the
infrastructure sector;

(c) The import duty structure for project imports rationalised;

(d) Progressive corporatization of public sector service providers in the areas of telecommunication
and ports;

(e) Custom duty has been reduced to boost InfoTech, Telecom industries and other knowledge based
industries.

Power:

New initiatives for the power sector include:

(a) Announcement of Mega Power Project policy;

(b) Restructuring of SEBs to be encouraged;
c) New transmission and distribution system to get fiscal benefits given to infrastructure sector;

(d) Increased budgetary support provided for the Tehri Hydro and the Naptha Jakhri Hydro Projects to
ensure its commissioning by March 2002;

(e) Assistance provided to States’ power sector reforms and for undertaking investments or
renovation and modernisation of old and inefficient plants and for strengthening the distribution
system;
Telecom:

The Government has announced the New Telecom Policy and thereby the policy observed:

(a) Domestic long distance calls to be opened up;

(b) Department of Telecom Services (DTS) is to be corporatized by 2001;

(c) DTS/MTNL are to enter as third cellular operators;

(d) TRAI reconstructed through an ordinance;

(e) Specific targets for Telecom is announced so as to provide phone on demand by 2002, achieve
telecom coverage of all villages in the country by 2002, provide internet access to all district
headquarters by 2002 etc.

(f) Domestic Long Distance Service has been opened up without any restriction on the number of
operators;
(g) Department of Telecom Services (DTS) and Department of Telecom Operations (DTO) have been
corporatized; and

(h) BSNL and MTNL are permitted to enter as third cellular operator in their respective circles.

Roads:

A new cess of Rs 1 per litre on HSD is imposed by the Government to generate funds which will be
transferred to Central Road Fund. Most of it will be used for development and maintenance of State
Roads and National Highways etc.

The Government has announced a major initiative for road development, the National Highways
Development Project (NHDP). The cost of the project is estimated at around Rs 54,000 crore.
Moreover, steps are taken for accelerated implementation of Prime Minister’s NHDP project from
Petrol and Diesel cess and additional fund raising measures are undertaken for NHAI.
Railways:

Indian Railway Catering & Tourism Corporation (IRTC) Ltd. is incorporated as a Government Company
with the objective of upgrading and managing rail catering and hospitality. Indian Railways have issued
letters of intent for ownership, operation and management of two luxury trains in private sector.

For improving passenger’s safety and comfort the following measures are undertaken by the
Government:

(a) For improving safety, riding comfort and reliability, planned up-gradation of track structure is being
undertaken using heavier and higher tensile strength rails;

(b) For detection of any hidden flows in the rails not visible in the naked eye, Ultrasonic Flaw Detectors
(USFD) are now being used;

(c) Track circuiting has been completed on berthing portion at all stations on A, B, C, D spl. and D
routes of Indian Railways;

(d) Walkie-talkie sets have been provided to drivers and guards of all trains for faster and better
means of communication;

(e) Simulators ate being installed for training of drivers.

Civil Aviation:

The Government has made necessary arrangement for restructuring of airports and Airport Authority
of India (AAI) through long term leasing route:

(a) It is proposed to divest government equity in Indian Airlines and Air India;

(b) It is proposed to lease out international airport at Mumbai, Delhi, Chennai and Kolkata on long
term basis;

(c) It is decided to set up new international airport at Bangalore, Hyderabad and Goa with private
sector participation.

Urban Infrastructure:

The Government has introduced special package for Housing Construction and Services, which will
facilitate development of urban infrastructure. In order to improve urban infrastructure, the
Government enhanced the tax benefits for housing and also extended tax holiday to urban
infrastructure.
Conclusion

Infrastructure development is the construction of basic foundational services in order to

stimulate economic growth and quality of life improvement. Most advanced economies have
gone through periods of intensive infrastructure building that have improved the efficiency
and competitiveness of regions.