Contents Preface ix-xii Part I: Infrastructure Development: An Introduction 1. Infrastructure Development: An Introduction 1-28 1.1 Infrastructure and Economic Development 1.1.1 Infrastructural Bottlenecks 1.2 Traditional Approach to Infrastructure 1.3 Commercialisation of Infrastructure Services: The New Approach 1.4 Allocation of Risks: The Key Problem 1.4.1 Build-Operate-Transfer(BOT) 1.4.2 Public-Private Partnership 1.4.3 Value Guarantees 1.5 Infrastructure Finance: Nature and Options 1.5.1 Role of Financial Institutions 1.5.2 Debt Market 1.5.3 External Sources 1.6 India Infrastructure Finance Company Limited (IIFCL) 1.7 Recent Policy Announcements on Infrastructure 1.7.1 Infrastructure in Recent Union Budgets A. Budget 2004-05 B. Budget 2005-06 C. Budget 2006-07 D. Budget 2007-08 1.7.2 Approach Paper to Eleventh Five Year Plan (2007-12) on Infrastructure 1.8 FDI in Infrastructure 1.9 Conclusion ___________Part II: Economic Infrastructure________ 2. Energy Sector: Objectives and Policy Measures 29-60 2.1 Electric Power 2.1.1 Basic Facts 2.1.2 Legal and Regulatory Framework A. Electricity Act, 2003 xiv Infrastructure Development in India B. Amendment to the Electricity Act, 2003 C. Electricity Rules, 2005 2.1.3 Institutional Reforms 2.1.4 Private Sector Participation in Power Sector A. Privatisation of Delhi Vidyut Board 2.1.5 FDI in the Power Sector 2.1.6 Poor Performance of State Electricity Boards (SEBs) 2.1.7 Scope for Commercialisation of Power Sector 2.1.8 Accelerated Power Development Programme (APDP) 2.1.9 Hydro Power Development 2.1.10 Nuclear Power ' ' 2.1.11 Captive Power Generation 2.1.12 Tax Incentives to Power Sector ' 2.1.13 Trading in Electricity 2.1.14 Rural Electrification ooo.-o-o A. Scheme for Rural Electricity Infrastructure and Household Electrification B. Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), April 2005 C. Progress of Implementation of RGGVY (till February 9, 2007) 2.1.15 New Tariff Policy of Central Electricity Regulatory Commission (CERC) for 2004-09 2.1.16 National Electricity Policy: Main Features 2.1.17 Partnership in Excellence 2.1.18 Eleventh Five Year Plan (2007-12) on Electric Power 2.1.19 Recent Initiatives in the Power Sector A. Ultra-Mega Power Projects (UMPPs) B. Development of Merchant Power Plants C. Power Transmission Network and National Grid 2.1.20 Conclusion 2.2 Coal 2.2.1 Eleventh Five Year Plan (2007-12) on Coal 2.2.2 Conclusion 2.3 Oil and Gas 2.3.1 Recent Initiatives in Oil and Gas 2.3.2 Eleventh Five Year Plan (2007-12) on Oil and Gas 2.3.3 Conclusion . Contents x 3. Transport Sector: Recent Initiatives and Outlook 61-92 3.1 Indian Railways 3.1.1 Introduction of Railways 3.1.2 Importance of Railways 3.1.3 Recent Initiatives for Development of Railways A. National Rail Vikas Yojana B. Railway Safety Review Committee C. Participation of State Governments D. Technological Upgradation E. Other Initiatives 3.1.4 Eleventh Five Year Plan (2007-12) on Railways 3.1.5 Conclusion 3.2 Roads and Road Transport 3.2.1 Introduction 3.2.2 Deficiencies of Road Network 3.2.3 Recent Initiatives and Future Plans in Road Network Development A. National Highways Development Project B. Pradhan Mantri Gram Sadak Yojana (PMGSY) C. Public-Private Partnership (PPP) D. Special Accelerated Road Development Programme in the North Eastern Region (SARDP-NE) 3.2.4 Current Issues in Road Network Development A. Development Strategy B. Maintenance and Management of Highways C. Highway Improvements on User Pay Basis D. Quality and Adequacy of Main Roads E. Corridor Management F. Institutional Arrangements 3.2.5 Eleventh Five Year Plan (2007-12) on Roads Network 3.2.6 Conclusion 3.3 Ports 3.3.1 Utility of Ports 3.3.2 Capacity and Capacity Utilisation of Ports 3.3.3 Problems Faced by Indian Ports A. Specific Problems Faced by Oil and Gas Sector .. . B. Other Bulk Traffic 3.3.4 Containerisation 3.3.5 Recent Policy Initiatives and Outlook A. Private Sector Participation B. Joint Ventures C. Manpower Planning D. Development of Hinterland/Port Connectivity E. Information Technology in Ports F. Environmental Clearance/Security/Safety Issues 3.3.6 Eleventh Five Year Plan (2007-12) on Ports 3.3.7 Conclusion 3.4 Civil Aviation 3.4.1 From Monopoly to Competition 3.4.2 Recommendations of Naresh Chandra Committee 3.4.3 Modernisation of Delhi and Mumbai Airports 3.4.4 Greenfield Airports 3.4.5 Non-metro Airports 3.4.6 Eleventh Five Year Plan (2007-12) on Civil Aviation 3.4.7 Conclusion 4. Telecommunications: The Great Leap 93-110 4.1 Importance of Telecommunications 4.2 Telecommunications in India 4.3 New Telecom Policy (NTP), 1999 4.4 Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) 4.5 Telecommunications Regulatory Authority of India (TRA1) 4.6 FD1 in Telecommunications 4.7 Telecommunication Services in Rural Areas 4.8 Recent Policy Initiatives in Telecom Sector 4.9 Agenda for Reforms 4.10 Eleventh Five Year Plan (2007-12) on Telecom and Connectivity 4.11 Vision for the Future 4.12 Modernisation of Postal Services 4.13 Conclusion 5. Special Economic Zones (SEZs): Islands of Integrated Production Facilities 111-126 5.1 Economics of SEZs 5.1.1 Meaning of SEZs , 5.1.2 Types of SEZs V-fAiCV-HUO * ' XV11 5.1.3 Configuration of a SEZ ;. ,;;-. , , 5.1.4 Advantages of SEZs 5.1.5 Pre-conditions for the Success of SEZs ; ,-.:.o 5.1.6 Possible Reasons for the Failure of a SEZ . , 5.1.7 Role of the Government 5.1.8 Role of the Private Sector 5.1.9 SEZs and Small Enterprises . .oo,.. oo;,.. 5.1.10 Global Experience . ,, ,, A.Chinai ;: B. North Korea .. , ,.;. - , C. Philippines ,., . 5.2 SEZs in India , 5.2.1 Experience with Export Processing Zones (EPZs) 5.3 Main Features of the SEZ Policy in India 5.4 Criteria for Approval , 5.5 Conversion of EPZs into SEZs 5.5.1 How are SEZs Different from EPZs? 5.5.2 Will EPZ Conversion Help? . .' , 5.6 Performance of SEZs in India 5.7 Apprehensions and Concerns 5.8 SEZs and National Security 5.9 Lessons from China - ;> 5.9.1 Size of SEZ 5.9.2 Customs Regulations o 5.9.3 Incentives Package 5.9.4 Labour Laws 5.9.5 Involvement of State and Local Authorities 5.9.6 DTA Sales 5.9.7 Foreign Investment and Technology 5.10 Challenges/Task Ahead .>ooo.', 5.11 Conclusion i. Urban and Rural Infrastructure 127-144 6.1 Urban Infrastructure .., . 6.1.1 Degree of Urbanisation in India 6.1.2 Constitution (Seventy-fourth Amendment) Act, 1992 6.1.3 Features of Urban Infrastructure Services 6.1.4 Urban Transport oo 6.1.5 Safe Drinking Water 6. 6. 6. 6. 6. 6. 6. 6. .6 Solid Waste Management (SWM)' .7 Sanitation .8 Urban Housing ! .9 Financing of Urban Infrastructure . 10 Cost Effectiveness ' .11 Institutional Structure .12 Jawaharlal Nehru National Urban Renewal Mission .13 Eleventh Five Year Plan (2007-12) on Urban Infrastructure 6.1.14 Conclusion 6.2 Rural Infrastructure : 6.2.1 Constitutional Provisions 6.2.2 Pradhan Mantri Gram Sadak Yojana (PMGSY) ; 6.2.3 Rural Electrification 6.2.4 Indira Awaas Yojana (IAY) o''' 6.2.5 Rural Water Supply 6.2.6 Rural Sanitation 6.2.7 Rural Infrastructure Development Fund (RIDF) 6.2.8 Bharat Nirman Programme for Rural Infrastructure 6.2.9 Conclusion 7. Tax Incentives for Infrastructure Development 145-154 7.1 Economics of Tax Incentives 7.1.1 Forms of Tax Incentives A. Deductions B. Tax Credit 7.1.2 Rationale for Tax Incentives , A. Individuals B. Business Organisations ; C. General Purpose Incentives 7.1.3 Problems Created by Tax Incentives 7.1.4 Alternatives to Tax Incentives 7.2 Justification for Tax Incentives for Infrastructure Development 7.3 Tax Incentives under Income Tax Act, 1961 _________Part III: Social Infrastructure___________ 8. Human Development and Social Security 155-178 8.1 Human Development Indicators 8.2 Millennium Development Goals: Deadline 2015 8.3 Social Security: Conceptual Framework 8.3.1 Meaning of Social Security ;' 8.3.2 Approaches to Social Security 8.4 Social Security in India's Constitution ' 8.4.1 Directive Principles of State Policy 8.4.2 Social Security: A Fundamental Right 8.5 Present Status of Social Security in India 8.5.1 Ranking of Social Security Needs 8.5.2 Social Security Legislations in India 8.6 Major Programmes for Social Development Launched in 2005-06:,o8.7 Disaster Management 8.8 Roadmap for the Future ' ' ': ' 9. Poverty and Poverty Alleviation Programmes ; - 179-194 9.1 How is Poverty Line Drawn? o9.2 Incidence of Poverty - ,.; 9.2.1 Estimates of Dandekar and Rath ., .: 9.2.2 Estimates of Planning Commission .. 9.3 Causes of Poverty 9.4 Major Poverty Alleviation and Employment Generation , . , . Programmes . 9.4.1 Jawahar RozgarYojna , 9.4.2 Pradhan Mantri Gramodaya Yojana (PMGY) . 9.4.3 Swarnajayanti Gram Swarozgar Yojana (SGSY) 9.4.4 Sampoorna Grameen Rozgar Yojana (SGRY) , 9.4.5 Rural Housing Schemes , 9.4.6 Pradhan Mantri Gram Sadak Yojana (PMGSY) , . 9.4.7 Drought Prone Areas Programme (DPAP), Desert Development Programme (DDP) and Integrated Wastelands Development Programme (IWDP) 9.4.8 Antyodaya Anna Yojana (AAY) . , , 9.4.9 Swarna Jayanti Shahari Rozgar Yojana (SJSRY) 9.4.10 Valmiki Ambedkar Awas Yojana (VAMBAY) 9.5 Union Budget 2005-06: Assault on Poverty and Unemployment 9.6 Conclusion ,* 10. Health and Family Welfare 195-210 10.1 Health - '