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Revival in the infra sector looks to continue

India’s economic survey for current fiscal (2009-10) suggests that core industries and infrastructure services have shown signs of recovery with the pick-up in overall industrial growth, and easing of supply bottlenecks in certain sectors along with recovery of demand in others. Tabling the survey in the parliament today, Finance Minister Pranab Mukharjee said the coal and other infrastructure such as ports, civil aviation and roads have shown signs of recovery.
The survey emphasised on the need to develop infrastructure to compliment and sustained the economic growth momentum. “The legislative, administrative and executive efforts are on to minimise the infrastructure deficit, ameliorate bottlenecks in completion of projects and nurture core industrial intermediates and infrastructure services”, the economic survey added. The government in this year’s budget had substantially increased allocation for many infrastructure sectors such as National Highways Development Programme (NHDP), Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Accelerated Power Development and Reform Programmes (APDRP).

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In the power sector, the survey says the growth of power generation during April-December 2009 was about 6% as compared to about 2.7% in the corresponding period in 2008. Overall, electricity generation by power utilities during 2009-10 has been targeted to go up by 9.1% to 789.5 billion KWh. Under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), 69,963 villages have been electrified and connections have been released to 88.8 lakh BPL households up to 15th January this year.
In the road sector, the survey states that in 2009-10 as against the stipulated target of developing about a 3,165 km of national highways under various phases of the NHDP, the achievement up to end November 2009 has been about 1,490 km. Similarly, as against the 2009-10 target of about 9,800 km for awarding projects under various phases of the NHDP, projects totaling a length of about 1,285 km have been awarded up to end November 2009. With a view to expedite the progress of the NHDP, the Ministry of Road Transport and Highways has revised the strategy for implementation of the programme. The Ministry has set a target of completion of 20 km of national highways per day, which translates to 35,000 km at the rate of 7,000 km per year during 2009-14.
Regarding improvement in urban infrastructure including basic civic services, the survey states that two more cities, namely, Tirupati and Porbandar were included as Mission Cities during 2009, taking the total number of selected cities to 65, under Mission mode approach of JNNURM. The Mission has achieved significant progress integrating reforms in the urban sector. So far, 38% of state level reforms, 55% of urban local bodies reforms and 54% of optional level reforms have been achieved, the survey said. The Mission cities have agreed to include promotion of PPP through appropriate policies and projects. Under JNNURM, a National Mission Mode Project under the National e-Governance Plan is being implemented in 35 Mission cities with more than one million population across 15 states on a pilot basis.
Enlisting the challenges for raising capacity creation in some critical infrastructure sectors to the desired level, the economic survey for 2009-10 states that initiatives required are multifaceted and includes those promoting flow of domestic and global resources, facilitating formulation, approval, financial closure and awards of projects and easing implementation hurdles. It says “the need of the hour is to expedite, synergise and consolidate these efforts-legislative, administrative and executive, so as to sufficiently and promptly meet the demands of increasing population and urban migration and faster economic growth”.

 

 

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