Introduction to Infrastructure planning

Infrastructure Definitions of infrastructure,

 Governing Features
Historical overview of Infrastructure development in India for
Power Sector , Water Supply and Sanitation Sector
Infrastructure Organizations & Systems, Road, Rail, Air and Port
Transportation Sectors, Telecommunications Sector, Urban
Infrastructure in India, the Rural Infrastructure.
Introduction to Special Economic Zones.
 DEFINATION OF INFRASTRUCTURE
 What is Infrastructure? „
 There is no single definition for the term “infrastructure”.
It is a term used in a variety of disciplines „
 “The underlying foundation or basic framework “
 The basic physical and organizational structures and
facilities (e.g. buildings, roads, power supplies) needed for
the operation of a society or enterprise.
 These are the main items:
 water supply, sewage plants, housing, roads, cable networ
ks, food supply facilities, schools, hospitals, airports,
community meeting places, business and
government buildings, bridges, railways.
 Infrastructure is required at various stages of physical
development.
 Mature regions with well established infrastructure will
have vast experience of the utility of that infrastructure
and any required changes will tend to be centered around
the timing and financing of incremental changes.
 Rapidly changing regions will require a different
approach. Here regional infrastructure may be required to
cope with an increasing or shifting population, or with
changes in the industrial base.
 Population and employment are the key drivers of rapid
development.
 The housing and industrial complexes required for these
changes will need new power sources, telecommunication
linkages, roads, water supply and sewerage treatment.
Land formation and drainage may be required, and
perhaps a port or airport. .
 Economic importance of
infrastructure
(1)Infrastructure increases economic output directly by
making private capital more productive, by increasing
the attractiveness of a region, and by the stimulation of
the construction market.

(2) As the infrastructure network expands, national

economic and financial efficiencies grow.

(3) Infrastructure has long term effects on the type of

social structure which will be developed - in particular
the growth of urban centers and their linkages.

(4) Inadequate infrastructure maintenance can cause an

increase in costs to producers and, in extreme cases, a
breakdown in economic activities.
 Government owned and operated infrastructure
 This very common mode of delivery involves the
government in raising the capital and running costs from
tax revenue, bank loans or bonds. Government agencies
will often rank potential projects in accordance with their
benefit-cost ratio and build facilities as money becomes
available.
 Contracts with private companies for the design and
construction are common, sometimes with some degree
of contractor cash flow financing. The facility will then be
handed over to the government agency responsible for
operation and maintenance.
 BOT PROJECTS
 Build–operate–transfer (BOT) or build–own–operate–
transfer (BOOT) is a form of project financing, wherein a
private entity receives a concession from the private
or public sector to finance, design, construct, own, and
operate a facility stated in the concession contract. This
enables the project proponent to recover its investment,
operating and maintenance expenses in the project.

 BOT finds extensive application in infrastructure projects

and in public–private partnership. In the BOT framework
a third party, for example the public administration,
delegates to a private sector entity to design and build
infrastructure and to operate and maintain these
facilities for a certain period.
 During this period the private party has the
responsibility to raise the finance for the project and is
entitled to retain all revenues generated by the project
and is the owner of the regarded facility. The facility will
be then transferred to the public administration at the
end of the concession agreement, without any
remuneration of the private entity involved.
 Infrastructure, Economic Growth and poverty
reduction
Overview of historical infrastructure
 Power is one of the most critical components of
infrastructure crucial for the economic growth and
welfare of nations. The existence and development of
adequate infrastructure is essential for sustained growth
of the Indian economy.
 India’s power sector is one of the most diversified in the
world. Sources of power generation range from
conventional sources such as coal, lignite, natural gas, oil,
hydro and nuclear power to viable non-conventional
sources such as wind, solar, and agricultural and domestic
waste. Electricity demand in the country has increased
rapidly and is expected to rise further in the years to
come. In order to meet the increasing demand for
electricity in the country, massive addition to the installed
generating capacity is required.
Power sector
 India has the fifth largest power generation capacity in the
world. The country ranks third globally in terms of electricity
production. Electricity production in India reached 584.22
Billion Units (BU) during April-September 2016. As per the 12th
Five Year Plan, India is targeting a total of 88.5 GW of power
capacity addition by 2017, of which, 72.3 GW constitutes
thermal power, 10.8 GW hydro and 5.3 GW nuclear.

 Renewable energy is fast emerging as a major source of power

in India. Wind energy is the largest source of renewable energy
in India. It accounts for an estimated 60 per cent of total
installed capacity (21.1GW). There are plans to double wind
power generation capacity to 20GW by 2022. India has also
raised the solar power generation capacity addition target by
five times to 100GW by 2022.
 Power sector
 The Government of India has been supportive to growth
in the power sector. It has de-licensed the electrical
machinery industry and also allowed 100 per cent Foreign
Direct Investment (FDI) in the sector.
The power sector in India is mainly governed by the
Ministry of Power. There are three major pillars of power
sector

These are Generation, Transmission, and Distribution.

As far as generation is concerned it is mainly divided into

three sectors these are Central Sector, State Sector, and
Private Sector.

Central Sector or Public Sector Undertakings (PSUs),

constitute 29.78% (62826.63MW) of total installed
capacity i.e, 210951.72 MW (as on 31/12/2012) in India.

Major PSUs involved in the generation of electricity

include NHPC Ltd., NTPC Ltd.,, and Nuclear Power
Corporation of India (NPCIL).
Besides PSUs, several state-level corporations are there
which accounts for about 41.10% of overall generation ,
such as Jharkhand State Electricity Board (JSEB),
Maharashtra State Electricity Board (MSEB), Kerala State
Electricity Board (KSEB), in Gujarat (MGVCL, PGVCL, DGVCL,
UGVCL four distribution Companies and one controlling
body GUVNL, and one generation company GSEC), are also
involved in the generation and intra-state distribution of
electricity.
Other than PSUs and state level corporations, private sector
enterprises also play a major role in generation,
transmission and distribution,
about 29.11%(61409.24MW) of total installed capacity is
generated by private sector.
 Electricity Generation
(Data Source CEA, as on 31/12/2012)
 WATER SUPPLY AND SANITATION
SECTOR
 Water is used by all sectors, agriculture, industry, commercial
services and in the residential sector.
 Although these sectors compete with each other, access to
water intended for personal and domestic use is a human
right. Every human being has the right to water, which is
sufficient, safe, acceptable, physically accessible and
affordable.
 Drinking water supply and sanitation in India continue to be
inadequate, despite longstanding efforts by the various levels
of government and communities at improving coverage.
 The level of investment in water and sanitation, although low
by international standards, has increased in size during the
2000s.
 In the year 2000, global water supply coverage was 82
percent but sanitation coverage was at 60 percent.

 Urban water supply coverage was at 94 percent whereas

rural water supply coverage stood at 71 percent. In case of
sanitation, such rural-urban division is more prominent -
Urban sanitation coverage was 86 percent whereas rural
sanitation access was only 38 percent2.

 Amongst the regions, majority of people living in Africa, Asia,

Latin America and the Caribbean do not get served with
potable water and proper sanitation.
•A study by Water Aid estimated as many as 157 million Indian or
41 percent of Indians living in urban areas, live without adequate
sanitation. India comes top for having the greatest number of
urbanites living without sanitation.

•India tops urban sanitation crisis, has the largest amount of

urban dwellers without sanitation and the most open defecators
over 41 million people.

•A number of innovative approaches to improve water supply

and sanitation have been tested in India, in particular in the early
2000s.
•These include demand-driven approaches in rural water supply
since 1999, community-led total sanitation, a public-private
partnerships to improve the continuity of urban water supply
 Indian scenario
•Under the Indian Constitution, and in our federal democratic set
up drinking water comes within the domain of the State
Governments (Provincial Governments).

•In fact, the 73rd Constitutional Amendment has gone a step

forward. It mandates that responsibility for drinking water and
sanitation services should be with Local Governments. Various
States in India are at different stages of giving effect to this
Constitutional mandate.

• The Sector Reform Project and Total Sanitation Campaign

Programme of my Ministry and the World Bank funded Rural
Water Supply and Environmental Sanitation projects
 RULAR WATER SUPPLY AND
SANITATION
 The 54th round of National Sample Survey (July 1999) on drinking
water, sanitation and hygiene in India provides data relating to
source, quality etc. of drinking water, and conditions of sanitation
and hygiene of households
 .This data was collected in the first half of 1998. Around 50 per cent
of rural households were served by a tube well/hand pump, 26 per
cent by a well, and 19 per cent by tap.
 Only about 31 per cent of rural households reported having their
source of water within their premises, the rest had to go out to
fetch their drinking water.
 About 60 per cent did not have to go beyond 0.2 km for this.
Seasonal disruption of supply was common, especially in the
summer months. Households still depended on supplementary
sources, especially where tube well or hand pump was the main
source. Practices of filtering or boiling water before drinking were
almost non-existent.
 States have reported that more than 95 per cent coverage
has been achieved. However, reliable data on the ground
reality of rural water supply is lacking.

 A re-assessment survey of rural habitations has become

necessary and the data should be updated periodically
through a ‘Return Filing’ system whereby each panchayati raj
institution (PRI) will report on the status of these services in
its area. Random sampling will need to be done to validate
this.

 In view of the importance of basic data, however, Central

assistance for PRIs and urban local bodies (ULBs) could be
made conditional on a ‘Return Filing’ system being
established.
REQUIREMENT OF SAFE DRINKING WATER IN RULAR AREA

 Highest priority to be given to ensuring that the ‘not covered’

habitations are provided with sustainable and stipulated
supply of drinking water.
 ii. It will be equally important to ensure that all the ‘partially
covered’ habitations having a supply level of less than 10
liters per capita per day (lpcd) and those habitations facing a
severe water quality problem are fully covered with safe
drinking water facilities on a sustainable basis. Thereafter,
other ‘partially covered’ and ‘quality affected’ habitations are
to be covered.
 iv. Once drinking water supply facility is provided to all rural
habitations as per the existing data by 2004, the remaining
period of the Tenth Plan would be utilized for consolidation.
REQUIREMENT OF SAFE DRINKING WATER IN RULAR AREA

 TENTH FIVE YEAR PLAN 2002-07

 The stipulated norms of supply would be 40 lpcd of safe
drinking water within a walking distance of 1.6 km or
elevation difference of 100 metres in hilly areas, to be
relaxed as per field conditions applicable to arid, semi-arid
and hilly areas.
 At least one handpump/spot-source for every 250 persons is
to be provided. Additional water is to be provided in the
Desert Development Programme (DDP) areas for cattle ,
based on the cattle population.
 The water requirements for cattle need not necessarily be
met through piped water supply and could be made through
rain-water harvesting structures/spot sources.
 In the states where 40 lpcd has been achieved in all
habitations, the next step is to raise the level of availability to
55 lpcd
INSTITUTIONAL FINANCE

•Currently, rural water supply schemes are conceived as

grant schemes
•. However, it is necessary to get institutional funding for
this sector in order to mobilize additional resources for
implementation of projects.
•The role of financial institutions like the Housing and
Urban Development Corporation (HUDCO), Life Insurance
Corporation (LIC), Infrastructure Development Finance
Corporation (IDFC), ICICI etc. would be vital in this task and
their potential should be tapped
 RULAR SANITATION COVERAGE

 rural sanitation coverage in India is gradually improving every

year. The census data shows the scenarios from the last
three decades. In the year 1981, only 1 per cent of people
had rural sanitation facilities.
 After two decades, in the year 2001, the percentage reached
22 per cent. By the end of the year 2005, the number
reached 33 per cent.
 According to an estimate, 650 million people in India still
defecate in the open every day. If we examine other facts,
out of the 48.5 per cent in the year 2007 an estimated
200, 000 tons of fecal matter is deposited in the open every
day.
 http://www.indiawaterportal.org/data-apps/#datachanges
 URBAN WATER SUPPLY

 urban water supply is facilities for meeting the water

requirements of an urban population, of the public
sector, and of trade and industry. The distribution of
the water may take place via either distribution
systems (piped supply) or non-piped supply points (e.g.
wells).
 In many countries the term "urban" is not necessarily
related to the size of the community in question and for
that reason the type of supply is defined as follows
Fig. shows the distribution of households according to the
primary source of drinking water reported by Census 2011.
Nearly 70 per cent households have access to tap water, out of
which 62 per cent have access to treated tap water.

Thus, nearly 40 per cent of urban Paper on Urban Water Supply

and Sanitation In India households have no access to public
supply, and have to depend on other sources of water.

all households do not have access to public supply have access

to it within the premise.

Only 49 per cent of households have access to piped water

supply within their premises
Distance of Water Source from Premises In addition to
a large percentage of households not having access to
piped water supply, a large percentage of households do
not have access to water within the house.

Figure shows the distribution of households according

to the distance between water source and houses.
Nearly two-thirds of the households do not have access
to water within the house, and 8 per cent of households
need to fetch water from more than 100 metres away
from their households.
 Highway development
 The National Highways Authority of India (NHAI) is an
autonomous agency of the Government of India, responsible
for management of a network of over 70,000 km of National
Highways in India
 challenges
 India’s roads are congested and of poor quality. Lane
capacity is low - most national highways are two lanes or less
 Rural areas have poor access. Roads are significant for the
development of the rural areas - home to almost 70 percent
of India's population.
 Although the rural road network is extensive, some 33
percent of India’s villages do not have access to all-weather
road
 Railway development

Indian Railways is a State owned national transporter,

responsible for rail transport in India.

It is owned and operated by the Government of India through

the Ministry of Railways.

It is the fourth largest railway network in the world comprising

119,630 kilometers (74,330 mi) of total track and 92,081 km
(57,216 mi) of running track over a route of 66,687 km
(41,437 mi) with 7,216 stations at the end of 2015-16.
Ports
India has 12 major and 187 minor and intermediate
ports along its more than 7500 km long coastline.

These ports serve the country’s growing foreign trade in

petroleum products, iron ore, and coal, as well as the
increasing movement of containers.

Inland water transportation remains largely

undeveloped despite India's 14,000 kilometers of
navigable rivers and canals.
Airport
 India has 125 airports, including 11 international airports.

 Indian airports handled 96 million passengers and 1.5

million tones of cargo in year 2006-2007, an increase of
31.4% for passenger and 10.6% for cargo traffic over
previous year.

 The dramatic increase in air traffic for both passengers and

cargo in recent years has placed a heavy strain on the
country's major airports
 challenges
 The railways are facing severe capacity constraints.
 All the country’s high-density rail corridors face severe
capacity constraints. Also, freight transportation costs
by rail are much higher than in most countries as freight
tariffs in India congested.

 In Mumbai, Delhi and other metropolitan centers,

roads are often severely congested during the rush
hours. The dramatic growth in vehicle ownership during
the past decade - has reduced rush hour
speeds especially in the central areas of major cities.