Infrastructure Development in India. Post-liberalisation Initiatives and Challenges
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1 Infrastructure Development in India Post-liberalisation Initiatives and Challenges
2 Contents Preface ix-xii Part I: Infrastructure Development: An Introduction 1. Infrastructure Development: An Introduction Infrastructure and Economic Development 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 Build-Operate-Transfer (BOT) Public-Private Partnership Value Guarantees 1.5 Infrastructure Finance: Nature and Options Role of Financial Institutions Debt Market External Sources 1.6 India Infrastructure Finance Company Limited (IIFCL) 1.7 Recent Policy Announcements on Infrastructure Infrastructure in Recent Union Budgets A. Budget B. Budget C. Budget D. Budget Approach Paper to Eleventh Five Year Plan ( ) on Infrastructure 1.8 FDI in Infrastructure 1.9 Conclusion Part II: Economic Infrastructure 2. Sector: Objectives and Policy Measures Basic Facts Legal and Regulatory Framework A. Electricity Act, 2003
3 xiv Infrastructure Development in India B. Amendment to the Electricity Act, 2003 C. Electricity Rules, Institutional Reforms Private Sector Participation in Power Sector A. Privatisation of Delhi Vidyut Board FDI in the Power Sector Poor Performance of State Electricity Boards (SEBs) Scope for Commercialisation of Power Sector Accelerated Power Development Programme (APDP) Hydro Power Development Nuclear Power Captive Power Generation Tax Incentives to Power Sector Trading in Electricity Rural Electrification A. Scheme for Rural Electricity Infrastructure and Household Electrification B. Rajiv Gandhi Grameen Vidyutikaran Ydjana (RGGVY), April 2005 C. Progress of Implementation of RGGVY (till February 9, 2007) New Tariff Policy of Central Electricity Regulatory Commission (CERC) for National Electricity Policy: Main Features Partnership in Excellence Eleventh Five Year Plan ( ) on 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 Conclusion 2.2 Coal Eleventh Five Year Plan ( ) on Coal Conclusion 2.3 Oil and Gas Recent Initiatives in Oil and Gas Eleventh Five Year Plan ( ) on Oil and Gas Conclusion
4 Contents xv 3. Sector: Recent Initiatives and Outlook Indian Introduction of Importance of Recent Initiatives for Development of A. National Rail Vikas Yojana B. Railway Safety Review Committee C. Participation of State Governments D. Technological Upgradation E. Other Initiatives Eleventh Five-Year Plan ( ) on Conclusion 3.2 and Road Introduction Deficiencies of Road Network 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) 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 E. Corridor Management F. Institutional Arrangements Eleventh Five Year Plan ( ) on Network Conclusion 3.3 Ports Utility of Ports Capacity and Capacity Utilisation of Ports Problems Faced by Indian Ports A. Specific Problems Faced by Oil and Gas Sector B. Other Bulk Traffic Containerisation Recent Policy Initiatives and Outlook
5 xvi Infrastructure Development in India 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 Eleventh Five Year Plan ( ) on Ports Conclusion 3.4 Civil Aviation From Monopoly to Competition Recommendations of Naresh Chandra Committee Modernisation of Delhi and Mumbai Airports Greenfield Airports Non-metro Airports Eleventh Five Year Plan ( ) on Civil Aviation Conclusion 4. Telecommunications: The Great Leap Importance of Telecommunications 4.2 Telecommunications in India 4.3 New Telecom Policy (NTP), Bharat SancharNigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) 4.5 Telecommunications Regulatory Authority of India (TRAI) 4.6 FDI 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 ( ) 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 Economics of SEZs Meaning of SEZs Types of SEZs
6 Contents xvii Configuration of a SEZ, Advantages of SEZs Pre-conditions for the Success of SEZs ; Possible Reasons for the Failure of a SEZ Role of the Government Role of the Private Sector " SEZs and SmalLEnterprises Global Experience A. China B. North Korea C. Philippines 5.2 SEZs in India 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,,.../> How are SEZs Different from EPZs?. " " 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 :. : < Size of SEZ. = Customs Regulations Incentives Package Labour Laws Involvement of State and Local Authorities DTA Sales Foreign Investment and Technology 5.10 Challenges/Task Ahead 5.11 Conclusion Urban and Rural Infrastructure, Urban Infrastructure..1 Degree of Urbanisation in India.2 Constitution (Seventy-fourth Amendment) Act, ] Features of Urban Infrastructure Services.4 Urban.5 Safe Drinking Water
7 xviii Infrastructure Development in India 1.6 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 1.13 Eleventh Five Year Plan ( ) on Urban Infrastructure 1.14 Conclusion 2 Rural Infrastructure 2.1 Constitutional Provisions 2.2 Pradhan Mantri Gram Sadak Yojana (PMGSY) 2.3 Rural Electrification 2.4 Indira Awaas Yojana (IAY) 2.5 Rural Water Supply 2.6 Rural Sanitation 2.7 Rural Infrastructure Development Fund (RIDF) 2.8 Bharat Nirman Programme for Rural Infrastructure 2.9 Conclusion 7. Tax Incentives for Infrastructure Development Economics of Tax Incentives Forms of Tax Incentives A. Deductions B. Tax Credit Rationale for Tax Incentives A. Individuals B. Business Organisations C. General Purpose Incentives Problems Created by Tax Incentives 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 Human Development Indicators
8 Contents xix 8.2 Millennium Development Goals: Deadline Social Security: Conceptual Framework Meaning of Social Security Approaches to Social Security 8.4 Social Security in India's Constitution Directive Principles of State Policy Social Security: A Fundamental Right 8.5 Present Status of Social Security in India Ranking of Social Security Needs Social Security Legislations in India 8.6 Major Programmes for Social Development Launched in Disaster Management 8.8 Roadmap for the Future 9. Poverty and Poverty Alleviation Programmes, How is Poverty Line Drawn? 9.2 Incidence of Poverty Estimates of Dandekar and Rath Estimates of Planning Commission 9.3 Causes of Poverty. 9.4 Major Poverty Alleviation and Employment Generation Programmes Jawahar Rozgar Yojna Pradhan Mantri Gramodaya Yojana (PMGY) Swarnajayanti Gram Swarozgar Yojana (SGSY) Sampoorna Grameen Rozgar Yojana (SGRY) Rural Housing Schemes Pradhan Mantri Gram Sadak Yojana (PMGSY) Drought Prone Areas Programme (DPAP), Desert Development Programme (DDP) and Integrated Wastelands Development Programme (IWDP) Antyodaya Anna Yojana (AAY) Swarna Jayanti Shahari Rozgar Yojana (SJSRY) Valmiki Ambedkar Awas Yojana (VAMBAY) 9.5 Union Budget : Assault on Poverty and Unemployment 9.6 Conclusion Health
9 xx Infrastructure Development in India Incidence of Major Diseases National Rural Health Mission (NRHM) Eleventh Five Year Plan ( ) on Health 10.2 Family Welfare Family Welfare in the National Population Policy (2000) Family Welfare in the Tenth Five Year Plan 10.3 Nutrition Support National Nutrition Mission 10.4 Conclusion Education as Critical Input 11.2 Elementary Education: Select Programmes District Primary Education Programme National Programme of Nutritional Support to Primary Education Pradhan Mantri Gramodaya Yojana Sarva Shiksha Abhiyan (SSA) National Programme for Education of Girls at Elementary Level (NPEGEL) Education Guarantee Scheme and Alternative and Innovative Education (EGS&AIE) Mid-Day Meal Scheme Kasturba Gandhi Balika Vidyalaya (KGBV) Prarambhik Shiksha Kosh (PSK) 11.3 Secondary and Higher Education 11.4 Technical Education 11.5 Adult Education 11.6 Education and Health in the Eleventh Five Year Plan ( ) 12. Labour Force and Employment Policy Work Force Participation Rates 12.2 Occupational Structure 12.3 Nature and Extent of Unemployment in India Urban Unemployment Rural Unemployment Estimates of Unemployment
10 Contents xxi 12.4 Causes of Unemployment Labour Force Pressure Slow Growth of the Economy Capital-intensive Technology Defective Education System 12.5 Government Policy to Tackle Unemployment 12.6 Second National Commission on Labour, Results of 55th Round of NSSO Survey on Employment and Unemployment, Results of 60th Round of NSSO Survey on Employment and Unemployment, January-June Special Group on Targeting Ten Million Employment Opportunities Per Year during the Tenth Plan Employment in the Organised Sector Labour Laws Cluster Development Swarna Jayanti Shahari Rozgar Yojana (SJSRY) Swarnjayanti Gram Swarozgar Yojana (SGSY) Sampooma Grameen Rozgar Yojana (SGRY) National Food for Work Programme (NFFWP) Employment Policy in Tenth Five Year Plan ( ) Sectoral Policies for Employment Generation Agriculture Agro-processing Industries Small-scale Industries Construction Travel and Tourism Employment Generation in Social Sectors National Rural Employment Guarantee Act, 2005: Main Provisions Eleventh Five Year Plan ( ) on Employment Future Employment Scenario 13. Labour Welfare: Legal Framework and Initiatives Need for Social Security 13.2 Constitution and the Directive Principles of State Policy 13.3 Legislations Pertaining to Labour 13.4 Labour Related Organisations/Activities/Schemes 13.5 Employees State Insurance (ESI) Scheme
11 xxii Infrastructure Development in India 13.6 Employees Provident Fund (EPF) 13.7 Payment of Gratuity 13.8 Employees Pension Scheme Retrenchment Compensation National Renewal Fund Unemployment Allowance Labour Welfare Funds Insurance Scheme for Cultivators Insurance Scheme for Agricultural Workers Tax Concessions for Labour Welfare Income Tax Concessions Wealth Tax Concessions Excise Duty Concessions Conclusion 14. Women Workers: Legislations and Empowerment Provisions Regarding Working Conditions for Women 14.2 Women Welfare: Constitutional Rights 14.3 Categorisation of Laws Pertaining to Women 14.4 Equal Remuneration Act, Maternity Benefit Act, Working of the Act Marriage: A Bar to Employment 14.6 Factories Act, Background 14.2 Night Work 14.3 Maximum Permissible Weight of Load 14.4 Creche Facilities 14.5 Unhealthy Employment 14.6 Welfare Facilities 14.7 Mines Act, Enforcement Aspects 14.8 Plantation Labour Act, Beedi and Cigar WorkerS:(Conditions of Employment) Act, Employees State Insurance Act, Enforceability of the Acts Recommendations of National Commission on Self-employed Women Regarding Enforcement of
12 Contents xxiii Labour Laws Empowerment of Women Ninth and Tenth Plans on Women Empowerment Task Force on Women and Children Women Welfare Programmes Rashtriya Mahila Kosh (RMK) Family Counselling Centres Short Stay Homes Swa-shakti Project Protection from Domestic Violence Act, Empowerment of Socially Disadvantaged Groups Scheduled Castes 15.2 Scheduled Tribes 15.3 Other Backward Classes (OBC) 15.4 Minorities 15.5 Physically/Mentally Challenged Leprosy Patients Mentally Retarded 15.6 Social Deviants 15.7 Older Persons 15.8 Other Disadvantaged Groups Beggars Scavengers Street Children 15.9 Right to Maintenance Conclusion Part IV: Economic and Social Infrastructure in India's Five Year Plans: Edited Extracts First Five Year Plan: Coal and Road
13 xxiv Infrastructure Development in India Shipping Civil Aviation: Development Plans Urban Development and Housing Housing Policy Rural Housing Priorities Family Planning Pre-School Education Primary Education Basic Education Secondary Education University Education Second Five Year Plan: f Coal and Road Shipping Civil Aviation Posts and Telegraphs Local Telephone Service Trunk Telephone Service Telegraph Service Expansion of Postal Facilities Other Programmes Indian Telephone Industries Overseas Service Urban Development and Housing Rural Housing Hospital Services
14 Contents xxv Family Planning Elementary Education Secondary Education University Education Third Five Year Plan: Coal Oil Inland Water Shipping Ports and Harbours Civil Aviation Posts and Telegraphs Telephone Services* Telegraph Services Postal Services Other Schemes Housing and Urban and Rural Planning Housing Boards Slum Clearance and Improvement Primary Health Units, Hospitals and Dispensaries Family Planning Pre-School Education Elementary Education Secondary Education University Education Technical Education Fourth Five Year Plan:
15 xxvi Infrastructure Development in India Coal Oil Trends in Rail and Road Traffic Road Ports Shipping Inland Water Farakka Barrage Civil Air Tourism Broadcasting Urban Development and Housing Village Housing Water Supply and Sanitation Family Planning Approach Pre-school Education Elementary Education Secondary Education Higher Education Fifth Five Year Plan: Coal Road Major Ports Minor Ports Shipping
16 Contents xxvii Inland Water Light Houses Air-India Indian Airlines International Airports Authority of India Civil Aviation Department Tourism Postal Services Telecommunications Overseas Communication Services Television Urban Development, Housing and Water Supply Urban Development Housing Rural Water Supply and Sanitation Urban Water Supply and Sanitation Central Sector State Sector Family Welfare Planning Programmes Elementary Education Secondary Education University Education Non-Formal Education Other Programmes Technical Education Cultural Programmes 20-Point-Socio-Economic Programmes Sixth Five Year Plan: Coal Road
17 xxviii Infrastructure Development in India Inland Water Major Ports Civil Aviation Postal System Telecommunications Housing, Urban Development and Water Supply Rural Housing Urban Housing Family Planning Early Childhood Education Elementary Education Adult Education Secondary Education^ Higher Education Technical Education Seventh Five Year Plan: (Volume I) Coal Crude Oil Housing and Urban Development Water Supply and Sanitation Seventh Five Year Plan: (Volume II) Upgradation and Rehabilitation Missing Links and Structures
18 Contents xxix Modernisation of Technology Preservation of Environment Maintenance of Assets Institutional Improvements Augmentation of Resources National Highways State Highways and Major District Rural Road Shipping Civil Aviation Urban Development and Housing Rural Housing Family Welfare Eighth Five Year Plan: (Volume I) Coal Crude Oil Urban Development and Housing Literacy and Education Eighth Five Year Plan: (Volume II) Road Shipping Civil Aviation
19 xxx Infrastructure Development in India Posts Telecommunications Urban Development and Housing Family Welfare Programme Strategies Ninth Five Year Plan: (Volume I) Coal Petroleum Sector Ports Telecommunication Ninth Five Year Plan: (Volume II) Ports Civil Aviation Telecommunications New Policy for Internet Service Providers (ISPs) Policy Framework Urban Development and Housing Major Sectoral Objectives of the Ninth Plan Family Welfare Adult Education Secondary Education
20 Contents xxxi University and Higher Education Tenth Five Year Plan: (Volume I) Tenth Five Year Plan: (Volume II) Road Ports Corporatisation of Major Ports Private Sector Participation Joint Ventures Development of Gateway Ports Tariff Policy and Regulatory Authority Manpower Planning Development of Hinterland/Port Connectivity Information Technology in Ports Civil Aviation Posts Telecommunications Urban Development and Housing Major Issues in Urbanisation for the Tenth Plan Urban Governance Housing Tenth Five Year Plan: (Volume III)
21 xxxii Infrastructure Development in India Road Density Postal Sector Spread of Post Offices in States Population under One Post Office Infant Mortality Rate Life Expectancy at Birth Literacy Levels in States Gender Disparities in Literacy Rates Eleventh Five Year Plan: (Approach Paper Released in November 2006) Infrastructure Development Public Private Partnerships Initiatives during Eleventh Plan Part V: Appendices Appendix 1: Economic Reforms in India: An Overview 587*606 Appendix 2: Ten Point Agenda Declared by Minister of and Information Technology on Appendix 3: Cellular Mobile Telephone Service Appendix 4: Very Small Aperture Terminal (VSAT) 611 Appendix 5: Universal Service Obligation Fund (USOF) Select Bibliography Index
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