A Sustainable Development Approach for InfraStructure Industry .

Infrastructure scenario  : A Sustainable Development in Infrastructure

India can reach double digit growth rate but the Govt needs to take hard measures .Investments in   infrastructure needs to be doubled .it is definitely possible ,but to achieve this govt needs to take some tough decisions to put in place some right policies.

We cannot achieve 10% growth in GDP unless we can develop the infrastructure to support it .This in turn involves in bringing private investments in all sectors .Public sector needs to be boosted by private player or private investments should be made lucrative .Govt has to ensure availability of long term capital for infrastructural development and that at a reasonable interest rates. For this to happen Govt needs to reduce fiscal deficit which is difficult .Fiscal discipline has to be achieved not just at the centre but also at the states.

The role of Infrastructure development is absolutely central .The prime minister’s office has announced that India will need $1 trillion in Infrastructure in the 12^th plan, How to achieve this?.

The private investors share will have to be doubled from 35% to 50 or 60% .( Govt should have to retain controlling stakes )to attract such private investments Govt  has to create investor friendly environment  and also a financing system capable of supporting viable projects .This  creates the tightening of fiscal deficit.Plannng commission has to create a  environment wherein  such projects can be implemented effectively .projects can be executed effectively if land acquisition, forest clearences and dispute resolution, all needs to be made more efficient than they are at present. The planning commission has to monitor projects on its implementation phases. In NHAI/SH road govt needs to give good rates to the house owners .Encroachments on those stretches and removing them is the responsibility of state.

Sometimes the highways go through the forest areas and clearances for cutting trees need to resolve more quickly .For every tree cut, govt needs ensure that three are planted.

Public Private Partnership is accepted logic in many states and this needs to be, State Govt needs to record /ensure performance statements.

Planning commission needs to push implementation, to achieve targets by clearing land acquisition or shifting of utilities. Under BOT-toll model, the contractors should get/have a strong incentive for completing the project in time which is not so in the case of EPC projects .In case of toll based BOT projects any delay or extension in the project completion  means revenue loss to the private player. Also, the private player takes the market risk in terms of emergence of traffic and this is an important advantage.

POWER SECTOR: This  indeed is a crucial sector .The target for capacity generation was 78000 MW our which is not achieved  ,Projects needs  to be monitored to avoid slippages  only  then this target  can be achieved .Implementation is critical and needs top priority .Annual targets with each infrastructure ministry specifying expected output in many dimensions. Annual target will have to be broken to monthly targets for milestone monitoring. Appropriate corrective action can be taken thereafter.

Unless the cabinet committee on Infrastructure resolves existing system-deficiencies, the problem will persists.

Investing  in infrastructure has to build up on the target .Sectors like Telecom have over achieved .Today in India we have more cellular phones than basic infrastructure viz Sanitation(public toilets) ,health centres .Govt need to Proliferate  on  such investments  .India needs more Public health centers ,toilets , and increase its health index( per-capita).

Investment is short in all other sectors like power, port, roads and civil aviation. Public investment in these sectors are below target. Private investments are doing well . Finance and resources have to be infused for achieving Quality in project management in public sector compared to other developing countries.Govt needs to address this problem at its root .

Besides this we have other problems like declining water resources, climate change, change in precipitation patterns (rainfall) .To deal with this Govt  has to conserve water from rivers and should think of implementing  inter-linking of rivers projects or should proactively invest in projects Conservation of water.

It is estimated by TERI (The Energy and resources Institute) , that with every increase in 1.5 to 2.5 deg Celsius, at least 20-30% of the species are in danger. The species not only include food crops but also vegetation, flora and fauna.

Indian Environmentalists are sarcastically terming GDP as Greed driven plunder .That means we are damaging our environment irreversibly.

India needs to target double digit growth but needs to do it reversibly by managing the ecosystem.