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Infrastructure development in india

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Mukesh Khinchi
Mukesh Khinchi

The document discusses infrastructure development in India. It covers sectors like power, roadways, railways, oil and gas, and telecommunications. Some key points: 1. India plans major investments to expand infrastructure like doubling spending on infrastructure to $1 trillion under the 12th Five-Year Plan. 2. The power sector faces a large demand-supply gap and needs over 150,000 MW of additional generation capacity. Reforms are expected to boost growth across generation, transmission and distribution. 3. Road and rail projects include expanding national highways, building the Golden Quadrilateral network, developing high speed rail, and the Delhi-Mumbai Industrial Corridor project. 4. Oil and

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INFRASTRUCTURE DEVELOPMENT IN INDIA
“ Expanding investment in infrastructure can play an important counter cyclical role. Projects and programmes [are] to be reviewed in the area of infrastructure development, including pure public private partnerships, to ensure that their implementation is expedited and does not suffer from [the] fund crunch.” Mr. Manmohan Singh, Indian Prime Minister,
Definition The Rangarajan Commission indicated six characteristics of infrastructure sectors, 2. Natural monopoly 3. High-sunk costs 4. Non-tradability of output 5. Non-rivalness (up to congestion limits) in consumption 6. Possibility of price Exclusion 6. Bestowing externalities on society.
Government is committed to PPP mode- Why?  Maximizing investment  Budgetary constraints  Development of assets of world class standards  Improved maintenance and management of assets  Provision of efficient services  Affordable prices through greater competition  Risk Sharing
Country Program Description Brazil Growth This strategic investment program oversees and Acceleration approves initiatives and public Program works investment. PAC, the first phase of the program launched in 2007, invested $349 billion in areas, including CHINA 12th Five-Year energy, urban began in 2011, is allocating some $1 The 12th Five-Year Plan, which infrastructure, sanitation, spending over five years. The program is trillion in infrastructure and transportation. Plan PAC-2byis Central Committee with help from the Ministry of developed the a $900 billion extension of the PAC of the investment will Housing and Urban-Rural Development. Much program for 2011–2014. with a secondary emphasis on go toward building high-speed rail, water supply, electricity, and highways INDIA 11th and 12th The 11th Five-Year Plan, which began in 2007, is developed and implemented by India’s Planning Commission. Of the plan’s Five-Year Plans estimated $500 billion in total infrastructure investment, one-third will flow to roads, including a project to upgrade, rehabilitate, and widen major highways in India. The rest will be spent on transit, water, electricity, and other infrastructure sectors. The country’s 12th Five-Year Plan, which runs from 2012 to 2017, will double the amount spent on infrastructure to $1 trillion.
Infrastructure development in india
Infrastructure development in india
Infrastructure development in india
Budget 2012-Infrastructure Sector gets major boost
Size – Power Sector •Generation capacity of 122 GW; 590 billion units produced (1 unit = 1kwh) -CAGR of 4.6% over the last four years. •India has the fifth largest electricity generation capacity in the world -Low per capita consumption at 606 units; less than half of China •Coal-fired plants constitute 57% of the installed generation capacity, followed by 25% from hydel power, 10% gas based, 3% from nuclear energy and 5% from renewable sources
Structure of power sector •Majority of Generation, Transmission and Distribution capacities are with either public sector companies or with State Electricity Boards (SEBs). •Private sector participation is increasing especially in Generation and Distribution - Distribution licences for several cities are already with the private sector - Many large generation projects have been planned in the private sector
Policy- Power sector •100% FDI permitted in Generation, Transmission & Distribution - the Government is keen to draw private investment into the sector •Policy framework in place: Electricity Act 2003 and National Electricity Policy 2005 •Incentives: Income tax holiday for a block of 10 years in the first 15 years of operation; waiver of capital goods import duties on mega power projects (above 1,000 MW generation capacity) •Independent Regulators: Central Electricity Regulatory Commission for Central PSUs and inter- State issues. Each State has its own Electricity Regulatory Commission.
KeY Players-Power Sector Major Players Capacity G T D Public sector NTPC 23,749 Yes No No National Hydro Yes No No Electric Power 3615 Corporation NPC Yes NO No 2770 Domestic Private sector Tata Power 2203 yes yes Yes RPG Group - CESC 1005 Yes yes Yes Reliance Energy 885 yes yes Yes International Private Sector China Light and 655 Yes No No Power (CLP) Marubeni 330 yes No No Corporation •G - Generation •T - Transmission •D - Distribution
Opportunity •Over 150,000 MW of hydel power is yet to be tapped in India •India requires an additional 100,000 MW of generation capacity by 2012
Potential •Large demand-supply gap: All India average energy shortfall of 7% and peak demand shortfall of 12% •The implementation of key reforms is likely to foster growth in all segments: - Unbundling of vertically integrated SEBs - “Open Access” to transmission and distribution network - Distribution circles to be privatised -Tariff reforms by regulatory authorities •Opportunities in Generation for: - Coal based plants at pithead or coastal locations (imported coal) - Natural Gas/CNG based turbines at load centres or near gas terminals - Hydel power potential of 150,000 MW is untapped as assessed by the Government of India -Renovation, modernisation, up-rating and life extension of old thermal and hydro power plants •Total investment opportunity of about US$ 200 billion over a seven year horizon
ROADWAYS • India has second largest Road network, in the world. • Total length is 33 lakh kms • Carry 65% of fright & 80% passengers •National highway constitute only 1.7% of roads but carries about 40% of traffic •Annual projected growth is 12-15% for passenger traffic & 15-18% for cargo traffic
ROADWAYS (cont.) • Important Development projects -The Golden Quadrilateral (GQ-5846 kms of 4 lane highway) - North-South & East-West Corridor (NSEW-7142 kms of 4 lane highways) - Four-laning of 12,109 km under NHDP-III -Program for 6-laning of 6,500 km of National Highways under NHDP- V.
Roadways (cont.) Investment plan
Railways • About 64000 km of rail network • Connects 7083 stations • Carry 2.20 crore passengers & 2.50 million tones of goods everyday • About 1.5 millions of workforce
Railways • In 1947 rail network of about 53000 km • Added only 11000 km of network in last 65 years • Modifications like- -Gauge changing -Electrification -Computerization -Double tracks
Investment Plan • Investment of Rs. 57630 cr the year 2011-12 for the development, highest ever by Indian railways in any financial year -Target of laying 1075 km of new lines in 2012 -800 km of gauge conversion -700 km of Doubling of lines
MISSION 2020 OF INDIAN RAILWAYS • High speed rail travel • Raising the speed of regular passenger trains from 100-130 khph to 160-200 kmph • To develop 50 world class stations which can be recognized internationally • Segregating passenger and freight tracks completely
DMIC project • Mega infrastructure project of USD 90 billion • To connect Delhi & Mumbai through road and railway network of 1483 km • Delhi, U.P., Haryana, Rajasthan, Gujarat, Maharashtra this states will be connected to form a corridor of international standard.
Oil & Gas • India 5th largest Consumer of energy • About 5.7 billion barrels of proven oil reserves. • FDI worth US$ 3, 332.78 million during April 2000 to December 2011
Market Dynamics Production Consumption • Crude oil 31.87 MMT • Diesel 1.44 million b/d. from April-Jan 12. • Petrol 388000 b/d. • Natural Gas 40157 • Gas 58 BCM MCM • 1.04 million barrels per day • Gas 50 BCM
Developments & Investments • KG Basin-Reserves of 56.6 BCM. • Reliance Industries J- 3 mega petrochemical Project • IOCL to set up refinery in Gujarat • ONGC & IOCL seeking refinery options in Srilanka • Petronet LNG Ltd planning to set up its third terminal in the east coast of India.
Government Initiatives • Indian Government has encouraged Saudi Arabia to get involved in the country's petroleum upstream and downstream sector • OPaL's Petrochemical project at Dahej, OMPL's Petrochemical project at Mangalore, IOC's LNG project at Ennore, Bharat Petroleum Corporation's LNG terminal at Kochi, Hindustan Petroleum Corporation's grass-root refinery in Visakhapatnam.
Road Ahead • Mr S Jaipal Reddy, Junior Oil Minister, India, expects investments worth US$ 75 billion in South Asian nation's oil and gas sector from April 2012 to March 2017 • Eventually, the development plan will also cut India's import bill.
Telecommunication • 3rd largest in the world & 2nd largest in Asia. • Mobile subscriber base-936.12 million. • Overall Tele- density 77.57% • Broadband Subscriber 13.42 million
Market Dynamics • The Indian handset market made a volume sale of 182 million. • The Indian handset market is led by Nokia with 37.2 per cent market share, followed by Samsung (14.9 per cent), G'Five (7.5 per cent) and Micromax (5.8 per cent).
Key developments & Gov. Initiative • Complaint centre by TRAI • Hybrid power • Easier & standardized municipal laws for Towers • Subsidy for Solar panels & use of nonconventional resource of energy. • Increased trend of sharing infrastructure.
NEED FOR INFRASTUCTURE DEVELOPMENT IN AIRPORTS • Air traffic has increased rapidly in recent years, although this slowed in 2007. • A number of Indian airlines have faced challenging market conditions in 2008 • Indians are still flying in much greater numbers. • Estimates made in 2007 by the Indian Government’s Committee on Infrastructure suggest that passenger traffic will grow at a CAGR of over 15% in the next 5 years
AIRPORT DEVELOPMENT PLAN (During the XI Plan Period 2007-12) • Main Objectives – To boost Infrastructure in Aviation sector. – To provide World-Class infrastructure facilities. – To meet the increased demand by enhancement of Aircraft/Cargo handling capacity. – To provide safe Air Traffic Services. – To achieve efficiency by improving Air Traffic Flow Management.
INVESTMENT BY AAI XI Plan (2007-12) – Planned Investment $10 billion . – Financing • Mainly through Internal Resources • Relatively small portion through Budgetary Support • Balance through Borrowings. • Issue of Bonds in Domestic Market. • Exploring Loan from JBIC/World Bank. – Credit Rating • Awarded AAA stable by CRISIL and L AAA by ICRA for AAI Bonds. • Awarded A1+ by ICRA for Short‐term Loan/ Commercial Papers
STEPS TAKEN BY GOVERNMENT FOR DEVELOPING AIRPORTS •The Airports Authority of India (AAI) manages and operates 126 airports and 329 airstrips •The Government established the Airport Economic Regulatory Authority (AERA) •State governments are also getting involved and looking to facilitate the development of new airports. •The total investment on new airports has been proposed at about $10 billion by 2012. • Greenfield airport projects are planned in resort destinations and emerging metros •Further, 35 non-metro airports are proposed for development.
NEED OF DEVELOPMENT OF PORTS • With 12 major ports and 187 minor ports, 7,517 km long Indian coastline plays a pivotal role in the maritime transport helping in the international trade • Increasing connectivity with inland transport networks is challenges currently facing India’s ports • which have seen massive swells in the amount of goods transported. • Traffic is estimated to reach 877 million tonnes by 2011-12, and containerised cargo is expected to grow at 15.5% (CAGR) over the next 7 years. • India’s existing ports infrastructure is not sufficient to handle the increased loads – cargo unloading at many ports is currently inadequate, even where ports have already been modernised
STEPS TAKEN BY GOVERNMENT FOR DEVELOPING PORTS • An estimated investment of around $22 billion is targeted for port projects in the five year period from 2007-12. • The National Maritime Development Programme includes 276 projects, with a required investment of about $15 billion over the next ten years, with private investment targeted at around $8 billion. • Projects related to port Development will provide a major opportunities for E&C companies. • Recent deregulation of the sector now permits 100% FDI, and an independent tariff regulatory authority has been set up to facilitate projects at major ports.
Infrastructural requirement scenario in India • Urban population is expected to grow about 50% by 2025 • Growth in GDP is predicted to be 8-9% per annum • Road Traffic growth will be 15% per year • Air traffic is growing by 25% per year • 101,000 MW of new power needed by 2012 • Sanitation Coverage is only 35% currently
Steps taken in the 11th 5- year plan 2007-2012 Actions taken in the 11th 5 year plan – 2007-2012: • The amount of money spent on infrastructure will be raised to 8% of GDP (earlier, infrastructure spending was only 4.6% of GDP) • One Half of all new investments in the 11th plan will be in infrastructure • The planning Commission has estimated that a total investment of $450 Billion in infrastructure is required over the next 5 years to meet India’s infrastructure needs. • Port capacity will be increased from 520MT to 800MT • 60000 MW of new power is to be added by 2012
Steps taken for infrastructural development • IIFC - India Infrastructure Finance Corporation 2. Setup to fund infrastructure funds in India & is owned by government. 3. Will lend money at low rates to public and private infrastructure projects 4. Would be able to borrow at low rates as they are guaranteed by GoI. • Government has started the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to improve Urban infrastructure
Conclusion • Infrastructure inadequacies in both rural and urban areas are a major factor constraining India's growth. India needs a lot more infrastructure to meet its needs. • The government is focusing on this and has created a set of programs and reforms aimed at addressing this issue.
Infrastructure development in india

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Infrastructure development in india

  • 2. “ Expanding investment in infrastructure can play an important counter cyclical role. Projects and programmes [are] to be reviewed in the area of infrastructure development, including pure public private partnerships, to ensure that their implementation is expedited and does not suffer from [the] fund crunch.” Mr. Manmohan Singh, Indian Prime Minister,
  • 3. Definition The Rangarajan Commission indicated six characteristics of infrastructure sectors, 2. Natural monopoly 3. High-sunk costs 4. Non-tradability of output 5. Non-rivalness (up to congestion limits) in consumption 6. Possibility of price Exclusion 6. Bestowing externalities on society.
  • 4. Government is committed to PPP mode- Why?  Maximizing investment  Budgetary constraints  Development of assets of world class standards  Improved maintenance and management of assets  Provision of efficient services  Affordable prices through greater competition  Risk Sharing
  • 5. Country Program Description Brazil Growth This strategic investment program oversees and Acceleration approves initiatives and public Program works investment. PAC, the first phase of the program launched in 2007, invested $349 billion in areas, including CHINA 12th Five-Year energy, urban began in 2011, is allocating some $1 The 12th Five-Year Plan, which infrastructure, sanitation, spending over five years. The program is trillion in infrastructure and transportation. Plan PAC-2byis Central Committee with help from the Ministry of developed the a $900 billion extension of the PAC of the investment will Housing and Urban-Rural Development. Much program for 2011–2014. with a secondary emphasis on go toward building high-speed rail, water supply, electricity, and highways INDIA 11th and 12th The 11th Five-Year Plan, which began in 2007, is developed and implemented by India’s Planning Commission. Of the plan’s Five-Year Plans estimated $500 billion in total infrastructure investment, one-third will flow to roads, including a project to upgrade, rehabilitate, and widen major highways in India. The rest will be spent on transit, water, electricity, and other infrastructure sectors. The country’s 12th Five-Year Plan, which runs from 2012 to 2017, will double the amount spent on infrastructure to $1 trillion.
  • 10. Size – Power Sector •Generation capacity of 122 GW; 590 billion units produced (1 unit = 1kwh) -CAGR of 4.6% over the last four years. •India has the fifth largest electricity generation capacity in the world -Low per capita consumption at 606 units; less than half of China •Coal-fired plants constitute 57% of the installed generation capacity, followed by 25% from hydel power, 10% gas based, 3% from nuclear energy and 5% from renewable sources
  • 11. Structure of power sector •Majority of Generation, Transmission and Distribution capacities are with either public sector companies or with State Electricity Boards (SEBs). •Private sector participation is increasing especially in Generation and Distribution - Distribution licences for several cities are already with the private sector - Many large generation projects have been planned in the private sector
  • 12. Policy- Power sector •100% FDI permitted in Generation, Transmission & Distribution - the Government is keen to draw private investment into the sector •Policy framework in place: Electricity Act 2003 and National Electricity Policy 2005 •Incentives: Income tax holiday for a block of 10 years in the first 15 years of operation; waiver of capital goods import duties on mega power projects (above 1,000 MW generation capacity) •Independent Regulators: Central Electricity Regulatory Commission for Central PSUs and inter- State issues. Each State has its own Electricity Regulatory Commission.
  • 13. KeY Players-Power Sector Major Players Capacity G T D Public sector NTPC 23,749 Yes No No National Hydro Yes No No Electric Power 3615 Corporation NPC Yes NO No 2770 Domestic Private sector Tata Power 2203 yes yes Yes RPG Group - CESC 1005 Yes yes Yes Reliance Energy 885 yes yes Yes International Private Sector China Light and 655 Yes No No Power (CLP) Marubeni 330 yes No No Corporation •G - Generation •T - Transmission •D - Distribution
  • 14. Opportunity •Over 150,000 MW of hydel power is yet to be tapped in India •India requires an additional 100,000 MW of generation capacity by 2012
  • 15. Potential •Large demand-supply gap: All India average energy shortfall of 7% and peak demand shortfall of 12% •The implementation of key reforms is likely to foster growth in all segments: - Unbundling of vertically integrated SEBs - “Open Access” to transmission and distribution network - Distribution circles to be privatised -Tariff reforms by regulatory authorities •Opportunities in Generation for: - Coal based plants at pithead or coastal locations (imported coal) - Natural Gas/CNG based turbines at load centres or near gas terminals - Hydel power potential of 150,000 MW is untapped as assessed by the Government of India -Renovation, modernisation, up-rating and life extension of old thermal and hydro power plants •Total investment opportunity of about US$ 200 billion over a seven year horizon
  • 16. ROADWAYS • India has second largest Road network, in the world. • Total length is 33 lakh kms • Carry 65% of fright & 80% passengers •National highway constitute only 1.7% of roads but carries about 40% of traffic •Annual projected growth is 12-15% for passenger traffic & 15-18% for cargo traffic
  • 17. ROADWAYS (cont.) • Important Development projects -The Golden Quadrilateral (GQ-5846 kms of 4 lane highway) - North-South & East-West Corridor (NSEW-7142 kms of 4 lane highways) - Four-laning of 12,109 km under NHDP-III -Program for 6-laning of 6,500 km of National Highways under NHDP- V.
  • 18. Roadways (cont.) Investment plan
  • 19. Railways • About 64000 km of rail network • Connects 7083 stations • Carry 2.20 crore passengers & 2.50 million tones of goods everyday • About 1.5 millions of workforce
  • 20. Railways • In 1947 rail network of about 53000 km • Added only 11000 km of network in last 65 years • Modifications like- -Gauge changing -Electrification -Computerization -Double tracks
  • 21. Investment Plan • Investment of Rs. 57630 cr the year 2011-12 for the development, highest ever by Indian railways in any financial year -Target of laying 1075 km of new lines in 2012 -800 km of gauge conversion -700 km of Doubling of lines
  • 22. MISSION 2020 OF INDIAN RAILWAYS • High speed rail travel • Raising the speed of regular passenger trains from 100-130 khph to 160-200 kmph • To develop 50 world class stations which can be recognized internationally • Segregating passenger and freight tracks completely
  • 23. DMIC project • Mega infrastructure project of USD 90 billion • To connect Delhi & Mumbai through road and railway network of 1483 km • Delhi, U.P., Haryana, Rajasthan, Gujarat, Maharashtra this states will be connected to form a corridor of international standard.
  • 24. Oil & Gas • India 5th largest Consumer of energy • About 5.7 billion barrels of proven oil reserves. • FDI worth US$ 3, 332.78 million during April 2000 to December 2011
  • 25. Market Dynamics Production Consumption • Crude oil 31.87 MMT • Diesel 1.44 million b/d. from April-Jan 12. • Petrol 388000 b/d. • Natural Gas 40157 • Gas 58 BCM MCM • 1.04 million barrels per day • Gas 50 BCM
  • 26. Developments & Investments • KG Basin-Reserves of 56.6 BCM. • Reliance Industries J- 3 mega petrochemical Project • IOCL to set up refinery in Gujarat • ONGC & IOCL seeking refinery options in Srilanka • Petronet LNG Ltd planning to set up its third terminal in the east coast of India.
  • 27. Government Initiatives • Indian Government has encouraged Saudi Arabia to get involved in the country's petroleum upstream and downstream sector • OPaL's Petrochemical project at Dahej, OMPL's Petrochemical project at Mangalore, IOC's LNG project at Ennore, Bharat Petroleum Corporation's LNG terminal at Kochi, Hindustan Petroleum Corporation's grass-root refinery in Visakhapatnam.
  • 28. Road Ahead • Mr S Jaipal Reddy, Junior Oil Minister, India, expects investments worth US$ 75 billion in South Asian nation's oil and gas sector from April 2012 to March 2017 • Eventually, the development plan will also cut India's import bill.
  • 29. Telecommunication • 3rd largest in the world & 2nd largest in Asia. • Mobile subscriber base-936.12 million. • Overall Tele- density 77.57% • Broadband Subscriber 13.42 million
  • 30. Market Dynamics • The Indian handset market made a volume sale of 182 million. • The Indian handset market is led by Nokia with 37.2 per cent market share, followed by Samsung (14.9 per cent), G'Five (7.5 per cent) and Micromax (5.8 per cent).
  • 31. Key developments & Gov. Initiative • Complaint centre by TRAI • Hybrid power • Easier & standardized municipal laws for Towers • Subsidy for Solar panels & use of nonconventional resource of energy. • Increased trend of sharing infrastructure.
  • 32. NEED FOR INFRASTUCTURE DEVELOPMENT IN AIRPORTS • Air traffic has increased rapidly in recent years, although this slowed in 2007. • A number of Indian airlines have faced challenging market conditions in 2008 • Indians are still flying in much greater numbers. • Estimates made in 2007 by the Indian Government’s Committee on Infrastructure suggest that passenger traffic will grow at a CAGR of over 15% in the next 5 years
  • 33. AIRPORT DEVELOPMENT PLAN (During the XI Plan Period 2007-12) • Main Objectives – To boost Infrastructure in Aviation sector. – To provide World-Class infrastructure facilities. – To meet the increased demand by enhancement of Aircraft/Cargo handling capacity. – To provide safe Air Traffic Services. – To achieve efficiency by improving Air Traffic Flow Management.
  • 34. INVESTMENT BY AAI XI Plan (2007-12) – Planned Investment $10 billion . – Financing • Mainly through Internal Resources • Relatively small portion through Budgetary Support • Balance through Borrowings. • Issue of Bonds in Domestic Market. • Exploring Loan from JBIC/World Bank. – Credit Rating • Awarded AAA stable by CRISIL and L AAA by ICRA for AAI Bonds. • Awarded A1+ by ICRA for Short‐term Loan/ Commercial Papers
  • 35. STEPS TAKEN BY GOVERNMENT FOR DEVELOPING AIRPORTS •The Airports Authority of India (AAI) manages and operates 126 airports and 329 airstrips •The Government established the Airport Economic Regulatory Authority (AERA) •State governments are also getting involved and looking to facilitate the development of new airports. •The total investment on new airports has been proposed at about $10 billion by 2012. • Greenfield airport projects are planned in resort destinations and emerging metros •Further, 35 non-metro airports are proposed for development.
  • 36. NEED OF DEVELOPMENT OF PORTS • With 12 major ports and 187 minor ports, 7,517 km long Indian coastline plays a pivotal role in the maritime transport helping in the international trade • Increasing connectivity with inland transport networks is challenges currently facing India’s ports • which have seen massive swells in the amount of goods transported. • Traffic is estimated to reach 877 million tonnes by 2011-12, and containerised cargo is expected to grow at 15.5% (CAGR) over the next 7 years. • India’s existing ports infrastructure is not sufficient to handle the increased loads – cargo unloading at many ports is currently inadequate, even where ports have already been modernised
  • 37. STEPS TAKEN BY GOVERNMENT FOR DEVELOPING PORTS • An estimated investment of around $22 billion is targeted for port projects in the five year period from 2007-12. • The National Maritime Development Programme includes 276 projects, with a required investment of about $15 billion over the next ten years, with private investment targeted at around $8 billion. • Projects related to port Development will provide a major opportunities for E&C companies. • Recent deregulation of the sector now permits 100% FDI, and an independent tariff regulatory authority has been set up to facilitate projects at major ports.
  • 38. Infrastructural requirement scenario in India • Urban population is expected to grow about 50% by 2025 • Growth in GDP is predicted to be 8-9% per annum • Road Traffic growth will be 15% per year • Air traffic is growing by 25% per year • 101,000 MW of new power needed by 2012 • Sanitation Coverage is only 35% currently
  • 39. Steps taken in the 11th 5- year plan 2007-2012 Actions taken in the 11th 5 year plan – 2007-2012: • The amount of money spent on infrastructure will be raised to 8% of GDP (earlier, infrastructure spending was only 4.6% of GDP) • One Half of all new investments in the 11th plan will be in infrastructure • The planning Commission has estimated that a total investment of $450 Billion in infrastructure is required over the next 5 years to meet India’s infrastructure needs. • Port capacity will be increased from 520MT to 800MT • 60000 MW of new power is to be added by 2012
  • 40. Steps taken for infrastructural development • IIFC - India Infrastructure Finance Corporation 2. Setup to fund infrastructure funds in India & is owned by government. 3. Will lend money at low rates to public and private infrastructure projects 4. Would be able to borrow at low rates as they are guaranteed by GoI. • Government has started the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to improve Urban infrastructure
  • 41. Conclusion • Infrastructure inadequacies in both rural and urban areas are a major factor constraining India's growth. India needs a lot more infrastructure to meet its needs. • The government is focusing on this and has created a set of programs and reforms aimed at addressing this issue.