The structure of infrastructure

Infrastructure is an important aspect for progress and development of a nation. Better connectivity to roads, building up of railway lines, or airports not only helps the economy and business to flourish, but also add to the social and economic welfare of the people. In the same way, building up of hospitals, or addition to power capacity enables a radical transformation of a locality. These are the very raw materials that help in building up of a nation.

Basic Infrastructure
Upgradation of some basic infrastructure was quite slow in 2008-09, particularly in the second half, as compared to the recent years.
Road length upgraded (NHAI) is 2203 KM in 2008-09, as compared to 1683 KM in 2007-08 – a considerable increase from only 636 KM upgradation in 2006-07.
Road works completed under PMGSY is 52405 KM in 2008-09 as compared to 41231 km in 2007-08 from 30710 km in 2006-07.

In the power sector, additional capacity for 3454 MW has been created in 2008-09, which is significantly less than what was additionally created in the previous two years. Petroleum refinery capacity is expanded by 29 MT in 2008-09 as compared to 2007-08.

Railways
The Indian Railways is the third largest single managed railway network in the world. There are several efforts made to improve railway infrastructure.
325 stations have already been developed through Model Station scheme for upgradation of passenger amenities. Another 269 stations are at various stages of progress. under the Touch & Feel Scheme, 637 stations have been identified to give a facelift on priority basis and 395 stations have been completed. The works for upgradation of passenger amenities of B and D category stations are planned to be completed by March 2010. In order to accommodate longer trains carrying 24/26 coaches, platforms at more than 502 stations have also been completed during last three years. Another 94 stations are in the process.

The production capacity at CLW was increased from 150 in 2006-07 to 200 locos per annum in 2007-08 to meet the increasing traffic requirement. In Vadodara in Gujarat, a Greenfield POH workshop with state-of-the-art facilities to undertake POH of 100 electric locos per annum is being constructed.

Roadways
The traffic pressure on the National Highways is immense. Though national highways comprise only about 2 per cent of the total length of roads, they account for about 40 per cent of the total traffic. So development of NHs is of utmost importance.

Phase I & II of National Highway Development Project (NHDP) has planned 4/6 laning of about 14,330 kilometres of national highways. These two phases consist of the Golden Quadrilateral (GQ), the North-South & East-West corridors, Port Connectivity and Other Projects.

As of March 31, 2009, 11,037 km of national highways under NHDP has been completed. Approval of the Government has been given for upgradation of 12,109 km under NHDP Phase- III, two-laning with paved shoulders for 5,000 km of national highways under NHDP Phase-IV, six-laning of 6,500 km of NHs comprising 5,700 km of GQ and balance 800 km of other sections of NHs under NHDP Phase-V, 1,000 km of expressways with full access control on new alignments under NHDP- Phase-VI, and construction of ring roads, grade separated intersection, flyovers, elevated highways, underpasses and service roads under NHDP Phase-VII.

The Special Accelerated Road Development Programme for North-eastern region (SARDP-NE) is designed to improve the road connectivity to state capitals, district headquarters and remote places of NE region.

Airports
In the Metro-cities, airports have been restructured and modernization and upgradation works are being conducted. The construction of first phase development works in Delhi started in early 2007 and is likely to be completed by March 2010. The construction works for Mumbai airport started in January 2007 and will be completed by March 2010.

Improvement programmes are also taking place in the Kolkata and Chennai airports to enable them handle larger passenger pressure. As for example, after the completion of the Chennai airport upgradation programme, passenger handling capacity at Chennai will be increased from 9 million to 23 million.

There are also many non-metro airports that are under the upgradation scheme. However, contrary to government’s promise that airports will be upgraded by the AAI, more and more private player involvement is encouraged.

Jawaharlal Nehru Urban Renewal Mission
JNNURM was launched in 2005-06. It enables the Mission cities to take steps for sustainable betterments in their civic services levels, through an additional central assistance (ACA) of Rs 50,000 crore for seven years beginning from 2005-06 and an equal amount from the State Governments and urban local bodies (ULB). Out of the ACA, Rs 25,500 crore is for the submission, urban infrastructure and governance (UIG), which includes urban renewal, water supply, sanitation, sewerage and solid waste management, urban transport, development of heritage areas and  preservation of water bodies.

The mission may be extended beyond its 2012 termination deadline. Additionally, the Urban Development Ministry has sent a proposal to the Cabinet for increase the corpus under the JNNURM to Rs 150000 crore from current corpus of Rs 100000 crore.

The Ministry has approached the World Bank for procuring a US$5 billion loan for JNNURM. This has raised tension among concerned circles. The Bank is known for its imposing contractionary economic policies in lieu of its loans to countries. In midst of this economic downturn, a contractionary economic policy will be the worst thing for an economy – many experts feel.

Several problematic conditions of the mission include: rationalisation of stamp duty to no more than 5 per cent within five years, repeal of Urban Land Ceiling and Regulation Act, introduction of independent regulators for urban services, VRS Schemes, non-filling of vacant posts, simplifying conversion of agricultural land for non-agricultural purposes. In simple policy language, the mission will privatize key urban services which were hitherto provided by the government at nominal price. Along with it, Bank-type contractionary policies will be imposed by putting curbs on urban employment.

Rural Development: Bharat Nirman
Under rural electricity programmes, from March 2005 till August 2009, only 29.5 per cent of the targeted households and 51.5 per cent of targeted villages could be connected.

Under Pradhan Mantri Gram Sadak Yojana (PMGSY), only 55 per cent of target achieved in terms of length and 34 per cent in terms of habitations that were aimed to be covered.

Under Bharat Nirman, only 4.5 per cent more sown area was targeted for irrigation. But only half of this low target could be achieved.

A success story can be recalled in terms of Indira Awaas Yojana, where over 71 lakh houses were constructed against a target of 60 houses. A new target of 120 lakh houses over the next five years is proposed.
 
Summing Up
For a crucial sector like infrastructure, the focus should be placed on a balanced development of business and human capital. Its is not at all necessary that emphasizing business will automatically improve living conditions of the masses in general which will build the human capital. So, separate emphasis has to be given on building social overheads, such as government schools and government health centers as well. The type of development in the infrastructure sector involving more and more private sector negates that possibility of infrastructure building in socially desirable yet profit-wise unviable cases. It entails a withdrawal of the State from the services which are supposed to be provided to the masses at a minimal price. Such a development is not desirable in a country where nearly two-third of the population lives below twenty rupees per day.