Infrastructure Devp in India

8/14/2019 Infrastructure Devp in India

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INFRASTRUCTUREDEVELOPMENT IN INDIA

(Presentation by Group IV)

(Roll Nos. 20 to 24)


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TOPICS COVERED BY TEAMMEMBERS

. DD Ojha (24): Intro, Energy, Power.

Karan (20): Transport System, Railways.

Kariappa (21): Roads, Rail-Road Co-ord.

Kundan (22): Water Transport, Civil Aviation.

Lovey (23): Communications, Urban infra.

Manjeet (25): Science & Tech, Private

Investment in Infra.


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QUOTE BY Dr. V.K.R.V. RAO

The link between infrastructure anddevelopment is not a once for all affair.It is a continuous process; andprogress in development has to bepreceded, accompanied and followedby progress in infrastructure, if we are

to fulfill our declared objectives of aself-accelerating process of economicdevelopment.


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CONTENTS

Infrastructure and Economic Development

Energy

Power

Transport System in Indias EconomicDevelopment

Growth of Indian Railways

Roads & Road Transport System in India

Rail-Road Co-ordination


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CONTENTS (Contd)

Water Transport in India

Civil Aviation in India

The Communication System in India Urban Infrastructure

Science and Technology

Private Investment in Infrastructure:Outlook and Prospects


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Infrastructure and EconomicDevelopment

What does infrastructure comprise of? Growth of infrastructure since

independence.


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WHAT DOES INFRASTRUCTURECOMPRISE OF?

Irrigation and flood control.

Energy: coal, electricity, oil & non-conventional sources.

Transport: Railways, roads, shipping &civil aviation.

Communications: P&T, telephones,telecommunication

Banking, finance and insurance.


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WHAT DOES INFRASTRUCTURECOMPRISE OF?

Science and technology. Social overheads: health, hygiene &

education.


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Growth of Infrastructure sinceIndependence

Heavy investments by Government on

infrastructure facilities has resulted in threefoldrise in agricultural production and sevenfold

rise in industrial production in last sixdecades.

Infrastructure development has an urban bias(power, transport, communications, banking etc).

This led to inadequate development and henceinadequate employment opportunities in rural

areas.


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Growth of Infrastructure sinceIndependence (Contd)

Infrastructure development has also

shown a bias in favor of rich and moreaffluent (power, transport,communication, health etc). Even in rural

areas the major irrigation projects have

benefited the rich farmers.


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Trends in performance of InfrastructureSectors

Item Unit 1950-51 2006-07

Coal Million tons 32 462

Elec Gen Billion kwh 5 663

Crude oil Million tons 0.4 34

Cement -do- 2.7 154


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Trends in performance of InfrastructureSectors

Item Unit 1950-51 2006-07

Steel Million tons 1.0 50

Rail goodstraffic -do- 73 728

Cargo ports -do- 19 464

Telephoneprovided

Millions NA 272


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Energy

Availability of energy is the single largest

factor which can act as constraint in the

economic growth of a country.

India

Seventh largest energy producer.

Fifth largest energy consumer.


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Energy

Sources of energy

Availability of primary energy in India

Non-commercial energy resources in India Non-conventional sources of energy in

India

Trends in consumption of commercialenergy since 1950-51

Energy crisis: The genesis


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Sources of Energy

Commercial sources of energy

Coal

Petroleum

Electricity

Accounts for 50% of all energy consumption

in India

Exhaustible/ non-renewable


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Sources of Energy (Contd)

Non-Commercial/ traditional sources of energy

Firewood

Vegetable wastes

Dried dung Supposed to be free

Renewable

More than 60% of Indian households depend for theircooking & heating needs


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Availability of Primary (Commercial)Energy in India

Coal and lignite Oil and gas

Electric power


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Coal and Lignite

Estimated coal reserve 148,790 mil tons

Mineable coal reserve 60,000 mil tons

Total lignite reserve 3,300 mil tons

Proved category of lignite 1,900 mil tons

Annual production of coal and lignite 437 mil

tons (2006-07)

Coal reserves in India sufficient for 130 years


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Oil and gas

Net recoverable oil reserves l 550 mil tons

Net recoverable gas reserves 500 bil cum

Oil may last only 20-25 years


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Electric Power

Thermal powergenerated out of oil and gasand nuclear energy.

Potential forhydroelectric poweris 90,000

MW annually, whereas only 18,000 i.e. 20%tapped.

Share of total power produced 17% hydel

80% thermal

03% nuclear


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Electric Power (Contd)

Considering the rich reserves of uranium

& thorium, potential for nuclear energy in

India is bright.

There is acute shortage of power in India.

Hydel and nuclear potential will have to be

tapped to gap this shortage.


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Non-commercial Energy Resources

Fuel wood. 65% of total rural energy consumption.

Fuel wood might be greater concern than food

grain in near future. Agricultural Waste.(straw)

Animal Dung Used as fuel in rural areas.

73 million tons burnt per year, which is more thanfertilizer produced.


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Non-conventional sources of Energy

Solar energy and wind energy.

Potential unlimited but not yet fully tapped in

India due to absence of cost effective

technologies.

Tidal Energy


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Sectoral trend in commercial energyconsumption ( in %age)

1953-54 1970-71 2005-06

Household 10 12 12

Agriculture 1 3 9Industries 40 50 42

Transport 44 28 22

Others 5 7 15

Total 100 100 100


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%age share of different fuels incommercial energy consumption

1953-54 1970-71 2005-06

Coal 80 56 29

Oil and gas 17 35 54

Electricity 3 9 17

100 100 100


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Energy Crisis: Genesis

After hiking of oil prices by OPEC in 1973.

From $2 to around $65 per barrel.

Had crossed $100 mark. Oil imports at Rs 2,58,570 crores, up from

Rs 1,110 crores in 1973-74.

Price at which petrol, diesel etc are sold inIndia is Government regulated and not

market determined.


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Nature of energy crisis

Demand supply mismatch in oil and all other

commercial fuels.

Coal production not keeping up to targeted

production and its poor quality. Demand supply mismatch in electricity.

Energy crisis in rural India.

Fire wood shortage emerging as serious energycrisis.

Rural poor spends 100 man days per yearcollecting fire wood.


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Measures to tackle energy problem

Stepping up oil production (ONGC, OIL).

Control over consumption of POL (No

success).

Substitution of oil with coal (No real

solution with depleting coal reserves).

Expansion of electric power. Revival of Dabhol Power Project.

Encouraging use of hydel and wind energy.


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Renewable energy sources

Bio gas, solar, wind, hydro power

Effort being made to move towards these sources.

Available in abundance.

Government promoting private investments willingly,

providing incentives.

National Project on Bio-gas Development has helpedinstall 3.3 million bio-gas plants generating bio-gasequivalent to 7.3 million tons of fuel wood.

National Programme for Improved Chullah.


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Renewable Energy Potential v/sExploitation

Source Potential/Availability

Exploitation

Bio-gas 12 million tons 3.2 million ton

Biomass pow 19,500 MW 384 MW

Small Hydro 51,000 MW 1400 MW

Solar 20 MW/ sq km 1.7 MWWind 45,000 MW 1370 MW

Energy from

wastes

1700 MW 16.2 MW


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Green Power & Bio-fuels

Ethanol a by-product of sugarcane.

Bio-diesel derived fromjatropa plant.

11th

Plan expects that by 2012, 5%vehicles on above fuels.

Target bio-fuel consumption to 20% by

end of 12

th

Plan.


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Rural energy crisis & de-centralisedenergy.

Conventional energy sources have failed

to solve energy crisis in rural India.

Fuel-wood riots like food riots of the past

quite likely.

De-centralized energy: To supplycommercial energy based on the

traditional non-commercial energy forms

using locally available materials.


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Wanted a national cooking energy policy

Half of all the energy spent in India is oncooking food.

Present Government policy extremely

lopsided , as it seeks to solve oil, coal andpower shortage with industry and transportrequirement in urban India as its primeconcern.

Cooking energy requirements of the ruralpoor have been virtually ignored.


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Wanted a national cooking energy policy(contd)

There is need for an integrated national

cooking energy policy, else it might lead to

disaster for people and environment.


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POWER

. Sources

. Hydel power

Thermal power

Nuclear power Targets & achievements

Chronic power shortage in India

SEBs, problem institution in power sector

Private sector reforms

Rural electrification


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Pattern of electricity consumption (per cent)

1950-51 1970-71 2006-07

Industry 63 68 38

Agriculture 4 10 23Railways 7 3 2

Public

lighting

13 10 14

Domestic 13 9 24

Total100 100 100


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Growth in installed capacities of varioussources of power in 1000 MW

Year Hydro Thermal Nuclear Total

1950-51 0.6(33) 1.1(67) - 1.7

1970-71 6.4(43) 7.9(59) 0.5(2) 14.7

2000-01 25.1(25) 73.6(72) 2.9(3) 101.6

2006-07 34.7(26) 93.7(70) 3.1 132.5


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Hydel Power

Renewable.

Most economical.

Environmental friendly.

Can easily replace oil, coal and natural gas which arecostly, short in supply and cause foreign exchangeproblems.

After huge enthusiasm for hydel power in the first andsecond plans, the same slackened subsequently. But

likely to revive.

Action initiated to add 8000 MW


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Thermal Power

Major source of power.

Generated by oil and coal.

Non-renewable and exhaustible.

Plants located near coal mines.

Increase in oil price has lead to increase in cost of

production of thermal power.

Use of oil being discouraged and replaced by coal.


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Nuclear Power

17 nuclear plants operational (4120 MW).

06 under construction (3160 MW).

Nuclear deals with France, US and Kazakhstan.

Framework for similar deals with UK and

Canada underway.

Increase capacity to 9% in 25 years.

6000 MW capacity by 2010.


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Targets and achievements in MWPlan Target Achieved % Short

First 1300 1100 15

Second 3500 2300 36

Third 7000 4500 36

Fourth 9300 4600 50

Sixth 19670 14230 28

Seventh 22250 21500 4

Eighth 30540 16420 46

Ninth 40250 19015 53

Tenth 41110 23250 40


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Chronic power shortage in India

Growth in generation not proportional to growth in

demand:

Hydel power generation depends upon intensity of

monsoons.

Commissioning of new capacities have often fallen short

of targets.

Sub-optimal performance of thermal plants.

Poor operations and management.

Poor maintenance services.

Poor quality of coal.


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SEBs: Problem Institution in PowerSector

State monopoly combining functions relating to

generation, transmission and distribution of

electricity.

Low capacity utilization of thermal plants. High T&D losses due to :

Sparsely distributed loads in rural sector.

Inadequate billing.

Pilferage.

Inability to arrive at economic power tariff.


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Private sector reforms

Government invited private sector into

power generation business in 1992. IPP

concept (Independent Power Producers).

Following incentives. 4:1 debt equity for financing.

100% equity participation by foreign co.

Reduction of import duty. 5 yr tax holiday for new projects.


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Private sector reforms (contd)

Utter incompetence of bureaucrats and

frivolous interference by NGOs have

delayed proper implementation.

Politicians & trade unions another

problem.


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RURAL ELECTRIFICATION

To stimulate growth of SSIs and promote a more

balanced and diversified economy.

REC helped speed up proceedings in an organized

manner. 13 states declared 100% electrification of villages.

Some north-eastern and north Indian states lagging

behind.


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Progress of Rural Electrification

Year Villages electrified(1000s)

Pumps Energized(millions)

1950 3 0.02

1960 22 0.19

1980 250 4

1985 370 6

2002 507 12

Documents

Infrastructure Devp in India