INFRASTRUCTURE

Mains Enrichment Cards 6th September 2023

Download PDF (English)

INFRASTRUCTURE : REVISION CARD

INTRODUCTION:

Definition	Infrastructure is a set of physical & social structures that is not only the foundation of industrial and agricultural output, & international and domestic commerce, but also of societal well-being.
Infra as Economic Growth Catalyst	To achieve a 5 trillion-dollar economy by 2024-25, there is a need to spend $1.4 Trillion on Infrastructure over these years (Eco survey 2022).

FORMULA BY theIAShub

1) ↑ INFRASTRUCTURE = ↑ PRODUCTIVITY + ↑ MOBILITY = ↑ INVESTMENTS + ↑ EMPLOYMENT = ↑ GROWTH & DEVELOPMENT

2) ↑ RURAL INFRASTRUCTURE = ↑ RURAL DEVELOPMENT + ↓ LIVELIHOOD GAPS + ↓ MIGRATION

3) ↑ PORT AND WATERWAYS DEVELOPMENT = ↑ FORWARD AND BACKWARD LINKAGES + ↓ LOGISTICS DELAYS + ↓ EXPORT HURDLES + ↑ FOREX EARNING + ↓ POLLUTION

4) ↑ ROAD NETWORKS = ↓ COMMUTE TIME + ↓ TRADE BARRIERS + ↑ EASE OF DOING BUSINESS

5) ↑ RAILWAY NETWORKS = ↓ CONGESTION + ↓ TRANSPORT COSTS + ↑ SPEEDIER MOVEMENT

SPEECHES BY PROMINENT PERSONALITIES (PM, PRESIDENT, UN OFFICIALS et al) /RECOGNITION IF ANY:

PM MODI: “People must be at the heart of any infrastructure growth story”.
“If we make infrastructure resilient, we prevent disasters not only for ourselves but for many future generations”.
The stronger our social infrastructure is, the more talented youth, skilled youth will be able to come forward to work.

CURRENT DEVELOPMENT:

National Logistics Policy (NLP), 2023 launched.
GoI awarded the contract of setting up India’s first multi-modal logistics park (MMLP) near Chennai to Reliance Industries (RIL).
Budget 2023-24: Infrastructure Finance Secretariat to Boost private investments; Urban Infrastructure Development Fund (UIDF); continuance of 50-year interest free loans to state governments etc.

DATA/FACT:

Current Investment	↑ by 33% to Rs.10 lakh crore (3.3% of GDP) (Budget 2023-24)
Planned investment (NIP)	Rs 100 Cr for 5 years (2020-2025)
Transport Sector	Contribution to GDP: 4.5% Freight Transport share: Road >60%, Rail 30%, Waterway 10% Inland Waterways: 2% (China 10%, Bangladesh 32%); Coastal Shipping: 6% Cost Efficiency: Cost of a tonne per KM: Roadways: Rs 2.5; Railways: Rs 1.3; Waterways: Rs 1
Road Sector	India has the 2nd largest road network in the world (After USA). National highway: 2% of total road network, 40% of total traffic Road accidents: 11% of global deaths (with only 1% worlds vehicles)
Railways Sector	4th largest network in the world (After US, Russia and China) In Freight traffic: 12 times more efficient than roadways Target freight share: From current 35% to 45% by 2030 (India’s NDCs). Railway Safety: In last 7 years (2016-17 to 2022-23), the number of consequential train accidents declined by more than 80%.
Shipping, port & Inland waterways	Coastline: 7500 km; Navigable Inland Waterways - 14,500 kms Major ports: 12, Non-major ports: 200+ Trade through marine transport: By Volume: 95%; by Value: 70%
Civil Aviation	Aviation market 7th largest in world, projected to be 3rd largest by 2024
Logistic Sector	Contribution to GDP – 15% Logistics Cost: 13-14% of GDP (compared to 7-8% in developed countries). Impact on exports - 10% decrease in logistics cost can increase 5-8% of exports.
Energy Sector	India’s Position: 3rd largest producer & consumer of electricity Installed Capacity: Fossil Fuel Based Thermal Power: About 58%; Non Fossil Fuel Based Renewable Energy Sources: >40% Power T&D Losses: >20% (highest in the world; World average 8%).

KEYWORDS:

Body: 21st Century Infrastructure (Infra- FIRST i.e. Future ready, Intelligent, Resilient, Sustainable, Transformative, Infrastructure); HIRA (i.e. Highways, Inland waterways, Railways, Airways); Infrastructure Triad (i.e Social, physical, digital); Infra as ‘Holy Grail’ (of Productivity/ $5Trillion economy/ Inclusive growth); Build- Neglect- Rebuild;
Way forward: From 'Transport Divide' to 'Culture of multimodality'; From Last mile challenges to first & last mile connectivity; From ‘Moving vehicles’ to ‘Moving People’; From grey to blue-green-grey infrastructure;

COMMITTEES RECOMMENDATIONS/NATIONAL OR INTERNATIONAL REPORTS:

Railways: Committees like Rakesh Mohan, Sam Pitroda, Anil Kakodkar, Bibek Debroy recommended:

Railway Modernization (LHB Coaches, Sourcing world class Tech, use of ICT & green tech), Railway Safety (Setting up of an independent statutory body, elimination of man/unmanned crossings); Resource Mobilisation (Rationalise railway fares, Allowing Private players, Commercial utilization of railway land bank and air space) & Reforming Organizational set up (Separation of Regulatory, Management, Policy making functions).

Railway Privatisation: Bibek Debroy Committee -> Reform first, privatise later: Recommended that before privatisation, Railways need key reforms like commercial accounting, decentralisation, human resource etc.
Shipping: Standing Committee: expand port capacity to handle demand for container traffic; invest towards to deepening drafts in Indian ports; Road and railway ministry to prioritize projects linked to port connectivity.

GOVT SCHEMES, POLICIES AND INITIATIVE:

Infra Financing: Policy for Strategic Disinvestment; National Monetization Pipeline; National Bank for Financing Infrastructure and Development (NaBFID); National Investment & Infrastructure Fund (NIIF), REIT/INVIT etc.
Infra Development: Bharatmala, Sagarmala, National Rail Plan for India – 2030; MetroLite and MetroNeo (Urban Infra); Affordable housing; Parvatmala scheme; National Hydrogen Energy Mission etc.
Infra Policy: National Logistics Policy; National Urban Transport Policy, Unified Logistics Interface Platform (ULIP)
Legislations: Recycling of Ships Act, 2019, Draft coastal Shipping Bill 2020, Major Ports Authority Act 2021, Draft Indian Ports Bill 2022, etc.

EXAMPLES/CASE STUDIES:

India

Transport Sector: Intelligent Transport System: improving urban public transport in Mysore (MITRA); Janmarg: India's first full BRT system at Ahmedabad, Gujarat; Advanced Parking Management Systems (APMS), at Palika Bazaar, Delhi,

Green Tech: Cochin Airport India’s First airport on solar power

Housing: Dignity housing model in Hyderabad, RERA Model in Maharashtra (Only RERA to have GIS mapping).

International

Energy Generating Subway Floor, Tokyo, Japan: Harnesses the power of foot traffic by the commuters in busiest stations through energy-generating flooring tiles.

CONCLUSION

Infra Sector: The need of the hour is to view infrastructure sector as an undivided whole and then strategize and invest accordingly, to enable India move from 'Missing Transit' to 'Nation on the Wheels'.
Gati Shakti: Hence, as India breaks into the ranks of Top 5 largest economies, PM Gati Shakti is critical to boost India’s domestic & global capabilities and move it from the culture of ‘Work in Progress’ to ‘Work for Progress’.
National Logistic Policy: Thus, a proper & time bound implementation of the policy will result not only in boosting the Ease of Doing Business, but will also put India on a “Highway to growth and prosperity”.
Port Sector: As India takes giant strides towards the Hon. PM’s vision of ‘ports for prosperity’, it is imperative that the all initiatives are taken with great institutional & integrative mechanism to realize the full potential of the port sector.
Affordable housing needs to be put at the centre of India’s socio-economic strategy, striking a better convergence with Swachh Bharat, Jal Jeevan, Smart Cities Mission, etc. to realise the aspirational vision of “Housing for all.”