bottlenecks in indian infrastructure 1

8/7/2019 Bottlenecks in Indian Infrastructure 1

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PRESENTATOR :

V ISHAL CHHABRA


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INFRASTRUCTURE

y Infrastructure is the basic physical and organizationalstructures needed for the operation of a society orenterprise, or the services and facilities necessary for aneconomy to function. The term typically refers to thetechnical structures that support a society, such as roads,water supply, sewers, power grids, telecommunications,and so forth. Viewed functionally,infrastructure facilitates the production of goods and

services; for example, roads enable the transport of rawmaterial to a factory, and also for the distribution offinished products to markets. In some contexts, the termmay also include basicsocial servicessuch asschools andhospitals.


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INFRASTRUCTURE

TRANSPORT

ENERGY

TELECOM

STORAGE

IRRIGATION

WATERSUPPLY

EDUCATION

HOUSING


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INDIAN INFRASTRUCTUREIndia is the second largest growing economyin the world.Major bottlenecks of Indian economy are:

y Pressure of large population

y Low rate of literacyy Low grade of human capitaly Paucity ofcapitaly Unequal distribution ofincome and wealth.y According to the surveyconducted jointly by global

consulting major KPMG and Economist Intelligence Unit,around 95 percent of Indian top executives feelinfrastructure investment wasinsufficient in the country tosupport the long-term growth of their organisations.


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URBAN INFRASTRUCTURE

PROBLEMS IN INDIA

y Urban residence

y Business premises

y Powery Urban transport

yWater

y Sewerage

yAirports

y Railways

y Seaports

y Roads

y Bridgesy Tourism infrastructure

y Solid waste management

y Projectsin SEZ

y Health care

y Entertainment

y Communications


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ROBLE S

I I IA

y Power

y Irrigation

y Drinking Watery Rural housing

y Roads

y Health care

y Education

y Telecommunication


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POWERy One of the biggest challenges of India is to cut on the power deficit.

According to the statisticsgiven by Central electricity authority of

India, Indias apex power sector planning body, the countryis facing apower deficit1 of 11% (as of February 2008.) The total powerrequirement of the country was 705,724 million units whereas thegenerated capacity was only 628,146 million units.

y One of the biggest challenges of India is to cut on the power deficit.According to the statisticsgiven by Central electricity authority ofIndia, Indias apex power sector planning body, the countryis facing apower deficit1 of 11% (as of February 2008.) The total powerrequirement of the country was 705,724 million units whereas thegenerated capacity was only 628,146 million units.

y As of 2007-08, the per capita consumption of electricityin India is only704 units ascompared to 1802 units of China.

y According to the economicsurvey of 2008 09, the target for

additional power generation of 2007-08 wasset at 16,335 MW. This wassubsequently reduced to 12039 MW, whereas the final generation was ameasly 9623 MW which is barely half of the determined target.

y The story for 2008-09 was no different with the target being set at 11,061MW and the final generation of 7530MW.


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POWERy Government has not concentrated on alternative energysources

and even the hydel power projects. For example, the potential forhydel power in the countryis estimated to be 150,000MW butbarely 20% ofit is exploited. Poor project management skills andimproper reservoir design and maintenance are cited to be theprimarycauses of these.

y Similarly, the potential of renewable energysector is pitted at300,000MW but only 13% ofit has been tapped. India has atropical climate and an over abundance ofsunlight. Still, theamount ofsolar energy4 produced in India is merely 0.4%compared to other energy resources. The Grid-interactive solarpower as of June 2007 was merely 2.12 MW.

y Geothermal energyis another neglected area. India is estimatedto have 10,600 MW of geothermal power generation potentialbut is absent from the sector altogether


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RAILWAYSy Indian Railways have accepted the fact that given the

size of operations, eliminating accidentsis an

unrealistic goal, and at best theycan only minimizethe accident rate. Human error is the primarycause,leading to 83% of all train accidentsin India.Whileaccident rates are low - 0.55 accidents per million trainkilometer,[the absolute number of people killed is highbecause of the large number of people making use ofthe network


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ROADSy

It issaid that To drive in India you need threethings: a good horn, good brakes and good luck!y Most cars on the road (as well as lumbering

trucks and motor-rickshaws) are designed forslowcrawls through traffic and are vastlyunderpowered for a decent highway. What thismeans for businessesis that any truck shipmentswill move at, optimistically, 30 km/hr (about 15mph) even on good roads, as trucks are not verycapable at weaving and passing around motor-rickshaws, not to mention the cattle strollingfreelyin the streets.

y In India, hardly 30 to 40 percent of the revenuerealized from roads are thrown back into roaddevelopment. In advanced economies like U.S.,

Switzerland and Japan, the entire amount isthrown back into road development.y The World Bank studycarried out has brought

out that a Dollar reduction in road maintenanceexpenditure can increase the cost of vehicleoperation by two to three Dollars.


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WATERy

India take

sthe

second pla

cein the world on a populat

ion after Ch

ina.The quantity of people, living in thiscountry, in 3,5 times exceeds the

population of the USA, for example, while its territory makes onlyabout 30 % of USAs territory.

y Constantlyincreasing population creates huge loading on all naturalresources of the country. The majority ofsources are polluted bysewage and agricultural drains.

y 21 % ofinfectious diseasesin the country arises because of unsafewater.

y None of the 35 Indian cities with a population of more than one milliondistribute water for more than a few hours per day, despite generallysufficient infrastructure.

y . According to the World Bank, none have performance indicators that

compare with average international standards.[

A 2007 study by theAsian Development Bank showed that in 20 cities the average durationofsupply was only 4.3 hours per day. No city had continuoussupply.The longest duration ofsupply was 12 hours per dayin Chandigarh, andthe lowest was 0.3 hours per dayin Rajkot


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WATER

y The lack of adequate sanitation and safe water hassignificant negativehealth impacts. It was estimated in 2002 by the World HealthOrganization that around 700,000 Indians die each year fromdiarrhea.

y In an article of EconomicTimes on 12 October2010.

URBAN HOUSEHOLD WITHOUT ACCESS TO SAFE DRINKINGWATER

HOUSEHOLD 1998-99 2005-06

URBAN 7.4 7.7


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HEALTHCAREyAccording to an survey of economic times 12oct 2010

Urban households without access to toilet facilities

The country has over 230 million undernourishedpeople according to the food and agriculture

organizations(THE STATE OF FOOD INSECURITYIN INDIA)

HOUSEHOLD 1998-99 2005-06

URBAN 19.3 16.8


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HEALTHCAREy India suffers from high levels of disease including Malaria,and

Tuberculosis where one third of the worlds tuberculosiscases arein India. In addition, India along with Nigeria, Pakistan and

Afghanistan is one of the four countries worldwide where poliohas not as yet been eradicated.

y Ongoing government of India education about HIV has led todecreasesin the spread of HIVin recent years. The number ofpeople living with AIDS in India is estimated to be between 2and 3 million. However in terms of the total population thisis asmall number. The country has had a sharp decrease in theestimated number of HIVinfections; 2005 reports had claimedthat there were 5.2 million to 5.7 million people afflicted withthe virus. The new figures are supported by the World HealthOrganization and UNAIDS.


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HOUSING PROBLEMSy One in every three urban Indians livesin homes toocramped to exceed even the minimum

requirementsof a prison cell in the US. If that soundsshocking, check this out: In the past 50years, both the number and proportion of Indians living in homes with a per capita space ofless than 100 square feet have gone up substantially. In fact, a majority of Indians have percapita space equivalent to or less than a 10 feet x 10 feet room for their living, sleeping, cooking,washing and toilet needs.

These startling statistics emerge from the recently released 63rd round survey of the NationalSample Survey Organisation. The data shows 32% of urban houses are 258 sq ft or lessin area.Given that urban households have an average size of 4.3 persons, this translates to 60 sq ft perperson, the minimum specified for US prisons.

Similarly, 39% of rural houses are 312 sq ft or less. Given the average household strength of 4.8persons, that works out to 65 sq ft per person just a little more spacious than a crampedAmerican jail.

What's the average size of an Indian house? It's 494 sq ft in rural areas or 103 sq ft perperson and 504 sq ft in urban areas, or 117 sq ft per person.

In the past 50 years, both the number and proportion of Indians living in homes with a percapita space of less than 100 sq ft have gone up substantially.


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33% ofIndians livein lessspace

thanUSprisonersARTICLEINTIMES OFINDIANOV 25,2008

y The second planning commission report said 46% of urban and 38.5% of ruralhouseholds had less than 100 sq ft per head of floor space in 1953-54.

In 2006-07, the year in which the 63rd round survey wasconducted by NSSO,55% ofcity dwellers and 56% ofvillagers were living in homes with less than 100 square feet per person.

The data shows that the single largest chunk of housesisin the 322 to 581 sq ftrange as 31% ofcity and 35.3% of rural houses are of that size.

With 807 sq ft as average covered area, urban areas of J&K have the biggesthousesin India. Kerala, Gujarat, Chhattisgarh, Punjab and Rajasthan have

average house sizes ranging between 600-700 sq feet, while Tripura and AndhraPradesh have the smallest urban houses with less than 400 sq ft of average area.

In rural India, people of Arunachal Pradesh have the biggest houses averagingover 1,000 sq feet while Chhattisgarh and J&K have average house size biggerthan 800 sq feet.


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bottlenecks in indian infrastructure 1

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