1. Group 9 (Sec A)
Infrastructure Development
A prerequisite for Indian Economy

2. Flow of the Presentation
• Introduction
• Investment Plan
• Budget Highlights on Infrastructure
• Impact of budget on various sectors
• Comparison with China
• Sector wise analysis
• Conclusion

3. Quote
“The link between infrastructure and economic
development is not a one time and for all affair. It
is a continuous process; and progress in a
development has to be preceded, accompanied,
and followed by progress in infrastructure, if we
are to fulfil our declared objectives of generating
a self-accelerating process of economic
development.”
Dr. V. K. R.V. Rao [noted Indian economist, early
1980]

4. Our Answer
•IS
INFRASTRUCTURE
DEVELOPMENT A
PREREQUISITE FOR
INDIAN ECONOMY?
YES

5. Introduction
• The total investment in infrastructure in 2006–07 was estimated to
be around 5% of GDP.
• According to XI th Plan, the total investment in infrastructure
required is 9% and 11% in the ending years.
• According to the budgeted plan, the total investment in
infrastructure required is 7.5%
• GDP growth averaging 9% per year can be achieved only by
– overcoming infrastructure deficit
– adequate investment takes
• An investment of USD 515.05 billion is suggested in Eleventh Five
Year Plan.
• Achieved through a combination of public investment, public-
private-partnerships (PPPs) and exclusive private investments
[Source: www.planningcommission.nic.in]

6. Why so much focus on infrastructure
• Critical pre-requisite for a sustainable growth
of the economy
• Affects international competitiveness and flow
of direct international investments
• Influences the living standards
• Realizing their full growth potential
[Source: Economic Survey 2008-09,http:/indiabudget.nic.in]

7. Investment Plan
X Plan XI Plan
Sectors US $ billion Share (%) US $ billion Share (%)
Electricity (incl. NCE) 72.96 33.49 166.63 32.35
Roads and Bridges 36.22 16.63 78.54 15.25
Telecommunication 25.84 11.86 64.61 12.54
Railways (incl. MRTS) 29.91 13.73 65.45 12.71
Irrigation (incl. Watershed) 27.88 12.80 64.34 12.49
Water Supply and Sanitation 16.20 7.44 35.93 6.98
Ports 3.52 1.61 22.00 4.27
Airports 1.69 0.78 7.74 1.50
Storage 1.20 0.55 5.59 1.09
Gas 2.43 1.11 4.21 0.82
Total US $ billion 217.86
100
515.05
100
Rs. crore 871,445 2,060,193
[Source: www.planningcommission.nic.in]

8. Electricity
32%
Roads
15%Telecom
13%
Railways
13%
Irrigation
12%
Water Supply and
Sanitation
7%
Ports
4%
Airports
2%
Gas
1%
Storage
1%
XI Plan Investment
[Data Source: www.planningcommission.nic.in]

9. Projected Investment in Infrastructure
in the Eleventh Plan
270,724
322,390
390,957
482,455
593,666
0
100000
200000
300000
400000
500000
600000
700000
2007-08 2008-09 2009-10 2010-11 2011-12
(Rs.crore)
Projected Investment in Infrastructure in the Elevent Plan
(Rs. 20,60,193 crore)
[Data Source: www.planningcommission.nic.in]

10. Infrastructure Deficit
• Highways
– 66,590 Km of NH :only 12% Four-lane; 50% Two-lane; and 38% Single-lane
• Ports
– Inadequate berths, rail / road connectivity and draft are constraints
• Airports
– Inadequate capacity: Runways, aircraft handling capacity, parking space &
terminal buildings
• Railways
– Old technology; saturated routes: slow average speeds
(freight: 22 kmph; passengers: 50 kmph); low payload to Tare ratio (2.5)
• Power
– 13.8% peaking deficit and 9.6% energy shortage; 40% T&D losses; absence of
competition; and inadequate private investment
• Telecom/IT
– Only 18% of market accessed; obsolete hardware; acute human resources’
shortages
[Source: www.planningcommission.nic.in]

11. Break up Investment
270,824 322,330 390,290
480,514
596,234
2,060,193
1,063,902
996,291
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2007-08 2008-09 2009-10 2010-11 2011-12 Total XIth
Plan
Total Projected
Investment
Non-Debt
Debt
[Data Source: www.planningcommission.nic.in]
All figures are in Rs Crore

12. Gap between Estimated Requirement
and Likely Debt Available
32,513 31,869 32,110 34,202 40,057
170,752
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2007-08 2008-09 2009-10 2010-11 2011-12 Total XIth
Plan
Likely Total Debt Resources
Estimated Requirement of
Debt
Gap between Estimated
Requirement and Likely Debt
[Data Source: www.planningcommission.nic.in]

13. Investment by Public and Private
sector
38.31 34.17 31
77
34 30
33.86
31.83
3.82
4
0
27.83
33.99
68.75
19.23
62
70
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Electricity Roads Telecom Railways Ports Airports
Private
State
Center
[Data Source: www.planningcommission.nic.in]

14. Projected vs Real Investment
Projected Investment in Infrastructure
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
US$Bn.
X Plan
XI Plan:
Business
as Usual
XI Plan:
Projected
[Data Source: www.planningcommission.nic.in]

15. GDP vs Infrastructure Investment
2007-08 2008-09 2009-10 2010-11 2011-12
Total 11th
Plan
GDP 44,97,040 49,01,774 53,42,934 58,23,798 63,47,939 2,69,13,484
Public
Investment 1,92,558 2,28,138 2,75,233 3,35,693 4,08,979 14,40,602
Private
Investment 78,166 94,252 1,15,724 1,46,762 1,84,687 6,19,591
Total
investment 2,70,724 3,22,390 3,90,957 4,82,455 5,93,666 20,60,193
All figures are Rs. crore
[Data Source: www.planningcommission.nic.in]

16. Investment as Percentage of GDP
6.02
6.58
7.32
8.28
9.35
7.65
4.28
4.65
5.15
5.76
6.44
5.35
1.74
1.92
2.17
2.52
2.91
2.30
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
2007-08 2008-09 2009-10 2010-11 2011-12 Total 11th Plan
Total
Public
Private
[Data Source: www.planningcommission.nic.in]

17. Regression Analysis
y = -6E-06x2 + 4.9659x - 996552
-100000
-50000
0
50000
100000
- 100,000 200,000 300,000 400,000 500,000 600,000 700,000
Residuals
Total investment
Total Investment Plot
Coefficients
Intercept 3052603
Total investment 5.65504
R Square: 0.990602
[Data Source: www.planningcommission.nic.in]

18. Infrastructure Investment vs IIP
36.4 36.1
40.4
48.7
56.3
67.7
80.6
5.8% 7% 8.4% 8.1%
11.4%
8.5%
2.7%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
02-03 03-04 04-05 05-06 06-07 07-08 08-09
Infrastructure
Investment
IIP
All figures in
USD Bn.
[Data Source: www.indiastat.com]

19. Budget Highlights
• Rs. 1,73,552 crore for infrastructure
• 46% of the total planned expenditure to infrastructure
• To provide adequate funding for developing rural
infrastructure: Bharat Nirman
• Additional Rs. 20,000 can be invested in infrastructure
bonds under section 80CCF
• IIFCL would enable the funding the infrastructure projects
• Imported duty-free machines allowed to be used for other
road projects
• Project imports status granted to Mono Rail Projects for
urban transport- 5% concessional custom duty on imports
[Source: www.indiabudget.nic.in]

20. IIFCL’s Loan sanctions to different
sectors
Power
46%
9629 cr
Roads
40%
8275 cr
Airports
10%
2150 cr
Ports
4%
820 cr
Urban Project
Negligible
14 cr
[Source: Company Website: www.iifcl.com]

21. Negative effect of Budget
• 2% hike in excise duty for cement
• Rs 50 per tonne cess on imported and
domestic coal
• Excise Duty hike in petrol/ diesel ; increase in
prices
[Source: www.indiabudget.nic.in]

22. Fund Allocation
Scheme/Ministry 2009-10
(revised
estimate) Rs.Cr
2010-11
(Budget
allocation)Rs.Cr
Change Change %
Road , transport 19,941 24,079 4,138 20.8
PMGSY 10,285 10,886 601 5.8
Power 6,650 10,475 3,825 57.5
Subsidy for
RGGVY
4,497 4,852 355 7.9
MNRE 573 1,009 436 76.1
Delhi Metro 5,834 4,141 -1,693 -29.0
Fertilizer Subsidy 52,980 49,981 -2,999 -5.7
Textiles 5,912 5,608 -304 -5.1
Non Plan Grant,
Loans to PSU
3,468 605 -2,863 -82.6
[Source: www.indiabudget.nic.in]

23. Budget Proposal on Electricity/Power
Electricity/Power
• in allocation to Rs. 5130 crore ( of 152%)
• in long term funding from IIFCL
• in allocation to renewable sector to Rs. 1000
crore ( of 61%)
• in MAT (from 15% to 18%)
• Clean energy cess of Rs 50/ tonne on domestic
and imported coal
[Source:www.irca.org]

24. Budget Impact on Electricity/Power
• Competitive bidding and regulatory clarity
through Coal regulatory authority
• Participation from private firms will
• MAT and cess would adversely affect the
profitability
[Source:www.irca.org]

25. Budget Proposal on Roads
• in allocation for road projects to Rs. 19,894
crore
• Allocation to ministry of Road Transport and
Highways is hiked by 20-30 percent
• Incremental disbursement of Rs 25000 crore
for next 3 yrs by IIFCL
• Import Duty exemption for certain
construction machinery
[Source:www.irca.org]

26. Budget Impact on Roads and ports
• in outlay favorable to road construction
• Financing through IIFCL will facilitate long
term capital
• MAT would adversely affect the profitability
• in Excise Duty in petro/ diesel , cement will
push up cost
[Source:www.irca.org]

27. Railway Budget
• Rs 4411 cr allotted for new railway lines
• To exceed freight loading target by eight million tonnes
• Service charge on AC fares cut
• Freight cut on food grain and kerosene
• Mobile e-ticketing centres at hospitals, courts
• Centre for railway research to be set up in IIT- Kharagpur
• To introduce 54 new trains in FY 2011
• Rs 1300 cr for passenger amenities
• Plan to raise Rs. 10,000 - 20,000 crore by next fiscal
• Railways will not be privatized: Mamata
[Source: www.indiabudget.nic.in]

28. Budget Impact on Telecom-Marginally Negative
• Increase in MAT 15% from 18% will impact cash flows.
• Indian telecom sector is amongst the most heavily taxed in
the world(30%)
• Overlook demand of rationalizing multiple taxes
• Full exemption from 4% special CVD on parts for manufacture
of mobile phones and accessories.
• Extension of the credit period to ten years from seven years is
a positive.
• Increase in diesel prices will increase network operating
expenses.
[Source:www.irca.org]

29. Budget Impact on Port
• Introduction of tonnage tax
• Increase In MAT to adversely affect sector.
• Hike in IIFCL disbursements targets to Rs
200bn.
• Investor friendly policy - $13.6 billion to be
raised through private sector.
[Source:www.irca.org]

30. Our Analysis of Budget
• Infrastructure received its due attention
• To achieve 9% GDP growth aggressive
investments in infrastructure is proposed
• Govt’s commitment to road infrastructure;
increase in allocation by 13%
• Measures taken to increase private
participation and transparency
• Major focus on RGGVY, PMGSY, MNRE to
enhance development and growth

31. Comparison
with China

32. Economic Growth and Poverty
Reduction – India and China

33. Infrastructure in China and India in
50s
• In early 50s or 60s; both countries had fairly
similar levels of infrastructure assets and
services
Sector India China Remarks
Electricity
output
6.3 billion
kWh
7.3 billion
kWh
Roads
Network
400,000 kms 1,200,000
kms
Almost 40%
of roads were
paved
Railway
network
53,000 kms 23,000 kms
[http://www.pbrc.soka.edu/Resources/Documents/KimNangia/pdf]

34. Infrastructure Development in China
and India

35. Saving rates
•In the 1980, China saved 35% of GDP whereas India’s savings rate was less
than half at 15.5%.
•Combined with higher fiscal deficits in India, it was not always possible to
invest in infrastructure.

36. Investment Rate

37. Infrastructure Sector Performance
Indicators

38. We may conclude
• Links between infrastructure and economic
growth and poverty reduction is neither certain
nor automatic
• results in improvements in productivity and in
overall quality of life
• facilitates economic growth
• provides connections to the global economy that
are crucial for export competitiveness and
manufacturing
• increased inequality and great regional disparity

39. Sector Analysis

40. Roads
•Road transport accounted for around 87 per cent of
passenger movement
• 60 per cent of freight movement in 2005-06
•Road network consists of national highways (NHs), state
highways, major district roads, other district roads
and village roads.
[Source: www.morth.nic.in]

41. Roads
• One of the largest highway and road networks;
second to the road network of US
• Total length of roads exceeds 3.34 million million
kilometers (source: Economic Survey 2008-09)
Source:http://www.unescap.org/ttdw/Publications/TPTS_pubs/bulletin73/bulletin73_ch3.pdf

42. Roads
• The Government has laid down ambitious plans
for development and upgradation of the
domestic road network.
• Private sector participation through PPPs is being
actively encouraged to achieve greater
efficiencies in development, operation and
maintenance.
• Private projects witnessed a 17 percent slippage
in time targets as opposed to a 65 percent
slippage in projects funded by the NHAI.
[Source: www.morth.nic.in]

43. Projected investments in Eleventh Plan
7338 7757
8469
10055
11747
5680 5956 6364
7299
8834
212 238 291 317 344
1875 2025 2150 2300 2463
15104
15976
17273
19971
23387
0
5000
10000
15000
20000
25000
2007-08 2008-09 2009-10 2010-11 2011-12
National Highways
State Roads
North East Roads
Rural Roads
Total
Total investment requirement for development and upgradation of the country’s
road network over the next five years is approximately US$ 55 billion. (Economic
Survey 2007-08)
[Data Source: www.planningcommission.nic.in]

44. National highways development
projects (as in November 2009)
[Source: Economic Survey 2009-10]

45. Funds and Borowings
(in crore)
Year Cess Funds External Assistance Borrowings Budgetary Support
Grant Loan
1999-2000 1,032 492 0 656.6 0
2000-01 1,800 461 120 804.4 0
2001-02 2,100 887 113 5,592.90 0
2002-03 2,000 1,202 301 0 0
2003-04 1,993 1,159 290 0 0
2004-05 1,848 1,239 361 0 0
2005-06 3,270 2,400 500 1,289 700
2006-07 6,407.50 1,582.50 395.5 1,500 110
2007-08 6,541.50 1,789 447.2 2,000 265
2008-09 6,972.5 1,515.0 379.0 1,096.3 159.0
2009-10 8,578.5 272.0 68.0 492.4 200.0
[Source: Economic Survey 2009-10]

46. BHARAT NIRMAN (2005)
A FOUR YEAR BUSINESS PLAN FOR RURAL
CONNECTIVITY (2005-2009)
•To connect 66,802 habitations with all weather
roads
•To construct 1,46,185 kilometers of the new rural
roads network
•To upgrade 1,94,132 kilometers of the existing rural
roads network
•Investment of Rs.48,000 crores over four years
•Ensuring quality and transparency in the
programme implementation
[Source: www.planningcommission.nic.in]

47. Current Status of Bharat Nirman
• provide electricity to the remaining 125000 villages and to
23 million households
• to connect the remaining 66802 habitations with all
weather roads
• to provide drinking water to 55067 uncovered habitations
• to provide irrigation to an additional 10 million hectares
• to connect the remaining 66822 villages with telephones
• Rs 435349 crore (or 30.3%) would be spent exclusively
towards improvement of rural infrastructure by public
sector.
[Source: www.planningcommission.nic.in]

48. Investment in Rual Infrastructure
under Bharat Nirman
7.81
9.5
3.68
58.18
20.83
Projected Investment in Rual Infrastructure
Electricity
Rural Roads
Telecommunications
Irrigation (incl. Watershed)
Water Supply and Sanitation
[Data Source: www.planningcommission.nic.in]

49. Power Sector
• Electricity generation by power utilities during
2009-10 has been targeted to go up by 9.1 per
cent to 789.5 billion KWh.
• The growth of power generation during April–
December 2009 was about 6.0 per cent
[Source: Economic Survey 2009-10]

50. Electricity Generation
•Decline in hydroelectric power generation was mainly due to poor monsoons
•Coal based generation of power constituted around 80 %of thermal generation and
around 66 % of the total generation of power
•power sector is a major consumer of coal using 74 per cent of the coal production
•total consumption of coal by the power sector: 271.0 million tonnes
•16.7million tonnes of coal was imported
Power Generation by Utilities (Billion KWh)
[Source: Economic Survey 2009-10]

51. Power deficit
[Source: Economic Survey 2009-10]

52. Rajiv Gandhi Gramin Vidyutikaran
Yojana (RGGVY)
• During 2007- 08
 electrification of 7077 villages
 release of connections to 12 lakh BPL households
• During 2008-09
 electrification of 25,000 un-electrified villages
 offering electricity connections to around 60 lakhs BPL
households
• During 2009- 10 up to January 15, 2010
 69,963 villages have been electrified and
 connections have been released to 88.8 lakh BPL
households
• 7.9 % increase in subsidy for 2010- 11
[Source: Economic Survey 2009-10, 2008-09]

53. Problems
[Source: Economic Survey 2009-10]
•Close to 66% of India’s power generation capacity is coal
based, consuming 74% of domestic production.
•Large-scale investments are needed to expand mine capacity
and to improve the quality of domestic coal.
•SEBs are unable to raise and collect sufficient revenue to
cover costs
•Around 400 million Indians still have no access to electricity.
• Just 44 percent of rural households have access to electricity.
•Power Theft

54. Suggestions
• Allow the entry of the private sector in distribution
• A separate policy specific to hydroelectric power
• A nuclear power policy to explore the possibility of allowing
the private sector into nuclear power generation.
• Untapped renewable sources of energy (approximately
126,000 MW comprising 79,000 MW from ocean thermal,
sea wave and tidal power; 20,000 MW from wind energy;
17,000 MW from bio-mass: and 10,000 MW from mini-
micro hydel power projects).

55. Indian Railways
• World’s third largest rail network
• Freight Charges :
– Railways have rationalized the freight structure extensively
to make it simple and transparent.
– Under the new pricing strategy, surcharge is levied during
peak season and discounts offered during lean season
• Upgradation of passenger amenities (Station
Amenities)
– Out of the 594 stations identified for upgradation of
passenger amenities through Model Station scheme, 325
stations have already been developed, while the rest are at
various stages of progress.
[Source: Economic Survey 2009-10]

56. – The accidents per million train kilometre, an
important index of rail safety, came down from
0.55 in 2001-02 to 0.20 in 2008-09.
Year No. of consequential Accident
2001-02 415
2008-09 177
2008-09 (April to Nov) 117
2009-10 (April to Nov) 102
Rail safety
[Source: Ministry or Railway]

57. Instructions have been issued to improve fuel
efficiency and reduce wastage.
Fuel consumption

58. Computerization of passenger and
freight services
[Source: Ministry of Railway]

59. Electrification Status of Indian
Railways

60. Telecom Sector
• Fastest growing telecom market in the world
• India is 4th largest market in asia after china,
japan and south korea
• Indian telecom network is 8th largest in the world
and 2nd largest among emerging ecomomies
• Contribution of telecom sector in terms of
revenue is 2.1 % of GDP as compared to 2.8% in
developed economies
[Source: Department of Telecommunication]

61. Telecom Sector

62. Regulatory Evolution
Source: TRAI, Fitch ech Report, Dot, IBEF, Press Search

64. Opportunities
• Mobile Governance
• Micro Financing
• Developing locally relevant content
• Education
• Government support
• Mobile Banking and M-commerce

65. Port Sector
• India’s coastline of approximately 6,000 km enfolds 192 ports.
• direct jurisdiction of the Ministry of Surface Transport (MoST)
• An additional 181 minor and intermediate ports are governed
by the Indian Ports Act.
• Currently, Ports follow “service” or “comprehensive” port
model whereby all operations, services and facilities are
provided by the port authority.
• Transfer into landlord model whereby the port authority will
only be responsible for regulatory functions and
infrastructure, the latter to be leased out to private
companies for a certain period of time.
[Source: Economic Survey 2008-09]

66. [Source: Ministry of Ports]

67. Comparison of Major Ports in India
and NW-Europe
Source: Indian Ports Association September 2007
Port Restructuring in Global Economy: International Journal of Transport
Economics, Vol. XXVII, No 1, 19-39 (2000)

68. Comparison
Source: Indian Ports Association September 2007
Port Restructuring in Global Economy: International Journal of Transport Economics, Vol.
XXVII, No 1, 19-39 (2000)

69. Shortcomings
• Cargo Handling Capacity
• Competition among the ports
• Port Management and government control
• Private Sector Participation
• Port Infrastructure
• Hinterland Connection
• SEZ’s and Industrial clusters along the port.

70. Challenges
• Indian Ports as a transshipment point are not competitive
with international ports due to high port costs and tight
regulations.
• Lack of Private participation and investment because of lack
of business environment.
• Certain physical limitations like low water depth and logistics
limitations like old infrastructure and cargo handling facility.
• Lack of expansion capabilities since the land around ports has
been inhabited and uncommitted political will make it difficult
to take land for expansion.
• Hinterland infrastructure like rail, roadways network is as
important as the ports itself. Poor infrastructure makes it
unproductive for business purposes as cost and time rises.

71. What Needs to be Done
• Liberalization
• Commercialization
• Corporatization
• Privatization
• Autonomy in tariff setting and investing.
• Establishment of Second Generation Ports
• Developing India as a world Cruise Market

72. Facts about Port Sector
• 100% FDI has been allowed in this sector
• “India expects to double port capacity to 1,500
million tonnes by 2011/12 and would require 1
trillion rupees investment in the port and
shipping sectors.” - Federal Shipping Secretary, A
P V N Sarma [October 2008]
• National Maritime Development Program
includes 276 projects, with a required investment
of about $15 billion over the next 10 years with
private investment targeted at $8 billion

73. Most of the commercial activity perhaps other than agriculture and village merchandise
takes place in Urban areas.
An overcrowded city will create more problems than solving some. Hence an broad and
far sighted infrastructure plan incorporates both economic growth and social well
being. Thus infrastructure growth goes hand in hand with the economic growth and in
most cases is a pre-requisite for growth.
Cities as engines of economic growth
Year Percentage of Urban Estimated contribution
to total population to national income (%)
1951 17.3 29
1981 23.3 47
1991 25.7 55
2001 30.5 60
Source: Economic Survey 2008-09
2008 36.2 66
[Source:www.assocham.org/prels/shownews.php?id=1432 ]
Urban Infrastructure

74. In the last 50 years:
Country’s population growth: 2.5 times
Urban areas population growth: 5.0 times
[Source: Economic Survey 2006-07]
Growth of employment during 1996-2006:
In urban India : 38%
Rural areas: 16%
Country as a whole : 28.1%
Population of cities like Mumbai and Delhi has grown more than 6 times since
1951.
A weak infrastructure will deter entrepreneurs and repel money flowing into the
region thus hampering the prosperity of the region.
[Source: www.saarc-sec.org/data/pubs/rpp2005/pdfs/Tables/Table-4.7.pdf]
Urban Infrastructure

75. Civil Aviation
There are 14 scheduled airline operators having 334
aircraft. During 2007, the scheduled operators have
been given permission for import of 72 aircraft.
The Ministry of Civil Aviation has given approval for
import of 496 aircraft and, in the next five years, more
than 250 aircraft are likely to be acquired by the
scheduled operators.
There are also 65 non-scheduled airlines operators who
have 201 aircraft in their inventory.

76. Civil Aviation
• There are 14 scheduled airline operators having 334
aircraft. During 2007, the scheduled operators have
been given permission for import of 72 aircraft.
• The Ministry of Civil Aviation has given approval for
import of 496 aircraft and, in the next five years, more
than 250 aircraft are likely to be acquired by the
scheduled operators.
• There are also 65 non-scheduled airlines operators
who have 201 aircraft in their inventory.

77. Deregulations
Year of the
Amendme
nt
Number of
Aircraft
Seats
May
provide
service to:
May provide
service when
Who can Service Fares:
1986 Max. of 10 Notified
Airports Only
2 hrs before/
after National
Airline
National and non-
scheduled
Regulated by
National
Airline
9.8.1989 Max. of 50
seats
55 Notified
airports
May-
December
1990
Min of 15/ No
max
All airports
(93)
Prior approval
of flight times-
abolished
Ownership expanded
to: Citizens, NRI
Government
Fare
restriction
abolished
25th
Feb 1993 40 % foreign Equity
allowed
1st
March
1994
8.3.94
A max. of 30
seats for new
entrants
A company/ body
registered in India*
24th
Jan 1997 No restrictions No
restrictions
No restrictions Anyone in the
aforementioned
categories*
NO
restrictions
02 Feb 2006 do do do FDI 49% airline
100% airport
No Restric.

78. Our Conclusion
• Increase Private participation to fund the
deficit in investment to attain GDP growth rate
of 9%
• Focus on balance growth theory: Investment
in rural infrastructure like rural roads
• Increase in Index of Industrial Production
through better infrastructure
• Better employment rate through
infrastructure investment

79. Our Conclusion
• Co-operation from state government
• use of standard documents: Model
Concession Document for better and fast
decision making for complex PPP programme
• Setting up of committee like PPPAC for better
execution of project and informed decisions
• Giving more authority to IIFCL for faster
raising of funds for infrastructure

80. Thank You