2014

NES RATNAM COLLEGE OF

ARTS,SCIENCE AND COMMERCE

SHIVBHUSHAN PANDEY , ARVIND
MARRIAPAN KOLIAR, CHIRANJEW
KANCHAN

[BUDGET IMPACT ON
INFRASTRUCTURE SECTOR IN INDIA]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of the
contents of the document.]

Introduction to infrastructure
Infrastructure refers to the basic physical
and organizational structures needed for the operation of
a society or enterprise, or the services and facilities necessary
for an economy to function. It can be generally defined as the set
of interconnected structural elements that provide a framework
supporting an entire structure of development. It is an important
term for judging a country or region's development.
The term typically refers to the technical structures that support
a society, such as roads, bridges, water supply, sewers, electrical
grids, telecommunications, and so forth, and can be defined as
"the physical components of interrelated systems providing
commodities and services essential to enable, sustain, or
enhance societal living conditions."

Origin of infrastructure
The word infrastructure has been used in English since at least
1927, originally meaning "The installations that form the basis
for any operation or system"


The word is a combination of the Latin prefix "infra", meaning
"below", and "structure". The military use of the term achieved
currency in the United States after the formation of NATO in the
1940s, and was then adopted by urban planners in its modern
civilian sense by 1970.

The term came to prominence in the United States in the 1980s
following the publication of America in Ruins, which initiated a
public-policy discussion of the nations "infrastructure crisis",
purported to be caused by decades of inadequate investment and
poor maintenance of public works. This crisis discussion has
contributed to the increase in infrastructure asset
management and maintenance planning in the US.
That public-policy discussion was hampered by lack of a precise
definition for infrastructure. A US National Research
Council panel sought to clarify the situation by adopting the
term "public works infrastructure"






There are 2 types of infrastructure
1. Soft infrastructure
2. Hard infrastructure

Soft infrastructure:-
1. Governance infrastructure
2. Economic infrastructure
3. Social infrastructure
4. Cultural, sports and recreational infrastructure

Hard infrastructure
1. Transport infrastructure
2. Energy infrastructure
3. Water management infrastructure
4. Communications infrastructure
5. Solid waste management
6. Earth monitoring and measurement networks




Scenario of infrastructure in India
Infrastructure sector is one of the key drivers of economic
development in the developing country like India. In recent
years, India has consistently increased investment on
Infrastructure from 5% of GDP in 10
th
five year plan period to
9% in 11 five year plan. Indias planning commission has
projected an investment of US$ 1 trillion for the infrastructure in
12
th
five year plan. However, development in basic
infrastructure is still relatively slower compared to other
countries. The rapid growth of the Indian economy in recent
years has placed increasing stress on physical infrastructure i.e.
electricity, railways, roads, ports, irrigation, water supply and
sanitation, all of which already suffer from deficit in terms of
capacities as well as efficiencies. Infrastructure sector is mainly
affected due to delay in project awarding, environmental
clearances hurdles, land acquisition issues, slower execution,
lack of cheaper financing options etc.

Current impact of budget on
infrastructure sector
1. Providing Rs.7060 crore to develop 100 smart cities

2. Allocation of Rs.8000 crore for rural housing
scheme




Road sector

1.Allocation of Rs.14389 crore towards PMGSY (i.e.
rural road development), 20% more than last time allocation

2.Proposal to invest Rs.37850 crore in NHAI and state
Highways; with Target of NH construction of 8500 km will be
achieved in current financial year

3.Proposed to work on expressways parallel to
Industrial corridors


Rail transportation

1.Allocation of Rs.1000 crore to boost rail connectivity in north
east area

2.Allocation of Rs.1000 crore to accelerating rail connectivity
in Border areas

3.To allocate Rs.100 crore for Metro Projects for Lucknow and
Ahmedabad


Others

1. Infra Investment trusts to be set up to scrutinize infra
projects

2.Present corpus of Pooled Municipal Debt Obligation
Facility to be enlarged to Rs.50000 Crore from Rs.5000 crore.


Other Initiatives
1.Proposal to develop SEZ in Kandla and JNPT

2.Allocate Rs.100 crore National Industrial Corridor in
Pune.

3.Propose scheme for development of New Airports in Tier-I, II
cities thru PPP mode

Such Initiatives augurs well for the sector as it will
give opportunities to infrastructure players to bag new
orders







Latest updates on infrastructure
development in India

PM to bring huge FDI in India from
Japan
TOKYO: India will get USD 35 billion from Japan over the
next five years for developmental projects, including building
of smart cities and next generation infrastructure as also
cleaning of the Ganga, as Premier Shinzo Abe today
pledged to partner Prime Minister Narendra Modi's
"ambitious"vision of inclusive development.

The two sides also signed five pacts covering defence
exchanges, cooperation in clean energy, roads and
highways, healthcare and women while vowing to take their
relationship to newer level.

"Prime Minister Abe affirmed a broader and stronger
Japanese partnership for Prime Minister Modi's bold and
ambitious vision for accelerating inclusive development in
India, particularly by transforming the infrastructure and
manufacturing sectors," said the Tokyo Declaration for
Japan-India Special Strategic and Global Partnership.


Mumbais eastern freeway Indias
second largest flyover

Dubbed an engineering marvel, the first phase of Mumbai's
Eastern Freeway from Orange gate to Panjarpol opened to the
public in June 2013.

Over 25,000 vehicles are expected to take the freeway daily. The
Eastern Freeway elevated road will be the longest such in an
urban area in the country. The bridge will have 313 pillars and
3,340 segments.

The 17-km freeway is divided in three parts: the 9.29-km
elevated road, the 4.3-km road-tunnel-flyover and an elevated
2.5-km flyover from Panjarpol till the Mankhurd-Ghatkopar
Link Road (MGLR) via Govandi. The eastern freeway is
Mumbai's most ambitious and much awaited project in terms of
traffic decongestion as the road is expected to decongest entire
eastern road corridor of the city.



Indores BRTS built on the pattern of
Ahemdabad BRTS

The BRTS road route built at a cost of Rs 135 crore. City
travellers have a bus frequency of 15 minutes at every specific
point. The BRTS consists of physically separated bus lanes and
enclosed 'metro-like' stations.

The proposed bus corridor will eventually cover a distance of
120.46 kms. The fare collection system will include smart
cards.

In 2012, The UN chose Ahmedabad's BRTS as a showcase
project to highlight that addressing climate change is not a
burden, but an opportunity to improve the lives of people.
Example of planned commuting system The Ahmedabad BRTS,
which began as pilot project on a 12.5 kilometre stretch in July
2009, has emerged as an example of how a planned commuting
system can help reduce emissions and improve air quality as
well as have a positive impact on urban




Double decker - Trains

Its been some years since India's first superfast double-decker
train was flagged off, but the railways has been introducing
them on many routes. The much-awaited air-conditoned double
decker express train between Chennai and Bangalore started its
run from April 25 2013 augmenting seat availability in the high-
demand route.

Every coach has seats in two decks with food trays attached at
the back of each seat. Every row is provided with bottle holders,
push back seats, windscreens and also charging socket.
Kapurthala RCF is the only railway factory in the country which
manufactures double decker AC coaches.







Indias first solar park at charanka
village in Gujrat

Gujarat accounts for 66% of India's total solar power. The
country's first Solar Park came up at Charanka village in Gujarat
in April 2012. The park at Charanka, spread across 5,000 acres,
has 500 MW of generation capacity of both solar and wind
energy.

Solar project developers like Alex Astral, US-based Sun Edison,
Lanco Solar, Roha Dyechem and GMR Gujarat Solar Power
have set up plants in the park. While 214 MW of grid connected
solar power was commissioned at Charanka by 17 national and
international companies, 10 solar plants having combined
generation capacity of 87.49 MW have gone on stream in
Surendranagar, 8 in Kutch (85 MW) and three each in
Banaskantha (55.20 MW) and Rajkot (25MW), amongst others.

In addition to solar energy, the park also manufactures solar
power plant panels and other related equipment. It also provides
training to local people of Gujarat to work at solar parks.



Yamuna expressway

The 165kmlong Yamuna expressway is one of the longest
access-controlled six-lane rigid pavements in India. With the
help of Yamuna Expressway, the rapidtransit corridor between
Delhi and Agra, the drive from Greater Noida to Agra takes just
90 minutes.

On the 165 km Greater Noida-Agra expressway, the maximum
speed limit is 100 kmph for cars and 60 km for heavier vehicles.
The Yamuna Expressway, besides connecting Delhi to Agra
through Noida-Greater Noida Expressway, touches 1,182
villages of Gautam Budh Nagar, Bulandshahar , Aligarh,
Hathras (Mahamaya Nagar) and Mathura district.






Banihal-Qazigund rail link through
Indias longest tunnel

An 11-km-long tunnel across the treacherous Pir Panjal
mountain range on the Banihal-Qazigund railway line in Jammu
and Kashmir, is the longest such transportation passage in India
and second longest in Asia. The 18-km long Banihal-Qazigund
section of the ambitious mountain railway, connecting Kashmir
Valley with Jammu region, was inaugurated on June 26.

The railway line, which connects Kashmir Valley with Jammu
region, will considerably reduce the travel time between the two
places. The distance between Banihal and Qazigund, which is
also one of the most treacherous stretches in the entire Kashmir
rail network project, will reduce from 35 km by road to 17.5 km
on train.







GIFT city in Gujrat

Spread over an area of 886 acres, GIFT city project aims at
state-of-the-art internal infrastructure encompassing all basic
urban infrastructure elements along with an excellent external
connectivity by roads, metro rail and Bus Rapid Transport
Service (BRTS).

The Rs 60,000-crore GIFT City project will house a financial
services-based multi-services SEZ, a centre for domestic
financial sector, corporate offices, regional offices of companies,
a trade centre, housing colonies, social infrastructure and other
associated amenities. The project is expected to create ten lakh
new jobs in ten years.

The city will use the energy-efficient district cooling system
instead of air-conditioning. It will also use an automated waste
collection system that sucks away garbage from buildings at
high speed.




Metro rail projects in many cities

The Metro fever is catching up in smaller cities, thanks largely
to the success of Delhi Metro. While Bangalore has already
started metro services, Jaipur, Gurgaon and Mumbai are
expected to begin operations this year.

Meanwhile, Mumbai's Chembur-Wadala monorail section,
which is India's first is set to be operational later this year. The
13 km first reach of Kochi Metro Rail project from Aluva to
Palarivattom is expected to be completed by December 2015
and the second by March 2016.








Modernization underway at Indias
airport

World over governments spend billions to make that airport
moment agreeable and delightful for visitors and locals alike.
India, with the gleamy T3 in Delhi, is just getting there...With
the AAI initiating a number of upgradation works -both for
airports and airspace navigation - the technology to be used is
also undergoing a phenomenal change.

While Hyderabad Airport has been rated as the No. 1 in India by
Skytrax-World Airport Awards, the GVK-led consortium that
operates Mumbai airport will throw open terminal 2, or T2, that
it hopes will outshine Delhi airport's T3.

Netaji Subhas Chandra Bose International Airport's new
passenger terminal has come up in Kolkata. It will have a
capacity to handle an annual traffic of 20 million passengers as
compared to the present 7.46 million. A new glass-and-steel
domestic terminal at Chennai airport is also coming up.




CONCLUSION :-

Infrastructure development is very necessary for every country
and most probably for the developing countries. The main way
to attract the foreign investors and corporate is to grow your
infrastructure sector. As it requires a huge capital in beginning
but at the maturity it yells in its twice the investment. In India
many steps are taken up by Prime minister to boost the sector, so
that it also gives push to other sectors.








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