This is a blog for the course "Infrastructure Planning and Management", offered at I.I.T-Madras, India. Students in this class will use this blog to discuss current issues relating to developments in the provision of physical Infrastructure.
With relevance to our readings on Confessions of an Economic Hit Man and The Chad-Cameroon pipeline is another instance of private opportunism in the proposed Grand Inga Project in Congo. This booklet traces the project details, context and development of the world's largest dam in a rather persuasive and interesting format.
"PPPs have become notorious among activists in recent years for two reasons: they have a track record of massively inflating project costs, and they place the cost burden firmly on governments while retaining the profits, and very often the ownership of the project itself, for the private sector."
"Grand Inga is the perfect lens to bring many of the key elements of development capitalism into focus—the absurdity and inapplicability to local needs of the great white elephants the IFIs build; the unfulfilled promises to local people, and the social and environmental misery the projects inflict; the sinecure of subsidies, contracts and markets for Western multinationals, a scheme often described as ‘corporate welfare’; and the passing of the responsibilities and costs for the projects onto the hapless ‘developing’ country, while keeping the profits closer to home (what Chomsky describes as the essence of modern capitalism: the socialisation of risk combined with the privatisation of profit)."
The active and meaningful participation of stakeholders are very much important for successful implementation of any PPP project. In the Tirupur water supply and sewerage system project, TEA is one of the important stakeholders. The project was designed for the benefits of both domestic and industrial consumers specifically textile exporters. Out of the total designed quantity of 185MLD, 85MLD would be supplied for the municipality and balance 100MLD would be supplied to industrial units. As such, the requirement of TEA would have been fulfilled.
But all efforts were gone on vain; as the actual demand from the industrial units is (40MLD) far lower than the estimated demand (100MLD). The door-to-door survey shows that the industrial units are unwilling to draw water from the new facilities for various reasons like Ground water is free though it is illegal; the quality of water supply is not good; Global recession; technology and monsoon is good etc.
The above reasons spelled out are more artificial. The main reasons for the failure of financial model of the Tirupur water supply project could be due to the following;
ØThe industrial units are not much committed to the project. Since their contribution to the investment is very low.
ØThe industrial units are not much bothered about the environment. Large scale violations of environmental regulations are more common and these resulted with closure of 750nos of dyeing unit until zero discharge was achieved as per the Madras High Court order for polluting Noyyal river. This requires huge amount of investment.
ØGlobal recession is not a fact as it is no way affected the growth of the Tirupur garment export industry except a slight fall in the year 2008; Refer Figure: 1.
ØClaiming good monsoon is not a valid reason, as the garment industrial units would be required plenty of water; this could not be met with few days of rain water harvesting.
The following are the few possible remedies to redirect the project into success path;
ØExpand the water supply network to the nearby areas.
ØStrict enforcement of environmental laws
ØGovernment should assist the dyeing units for achieving zero discharge.
ØGovernment should work out a special discounted water tariff for the large industrial consumers which are obtained zero discharge.
Noyyal river before and after pollution
Friday, September 9, 2011
I had the opportunity to meet Dr. Isher Ahluwahlia yesterday and learnt that she has written a series of very interesting articles on infrastructure in the Indian Express, along with Ranesh Nair who is currently with IDFC. The first article can be found here and if you are interested, you can google and read the other articles as well. They are excellent and provide a good overview of some very interesting infrastructure projects undertaken in India,
Was browsing through Economic Times and found two really good articles which I think would be relevant to what we have covered in the class on “Transportation Infrastructure in India”.
The first article states the present Road Projects ongoing in Bihar and the other article outlines an overview of the current private sector participation in the domain.
I would briefly summarize what I read which I think would give a good picture of the ongoing road projects in the country.
Of course, thanks to group 1 and Prof. Ashwin Mahalingam for easing the understanding and now I think we can relate to the topic and understand the jargon even better.
One story which I think many of us know and must know is that of Satyendra Dubey an IIT-Kanpur Civil Engineering student who was working with National Highway Authorities Of India and was assigned the famous Golden Quadrilateral Project. While being posted at Koderma in Jharkand he exposed the corruption and other inadequate practices in the section by writing a letter directly to the prime minister’s office. More so, he clearly stated even the names of the companies involved. Thus to protect himself he asked for anonymity but no-one actually gave any sort of heed for his anonymity request and circulated the letter among themselves.
What do you think might have really happened after this?
He was murdered an year later at Gaya, Bihar. I respect and ofcourse everyone respects for what he had done but no one actually dares to go against the authorities involved. Well, you may ask what happened to the murderers? One of the three accused in the case escaped from police custody and the rest is history. Its all crony capitalism and I believe corporations are even more grievous and selfish than mafias.
I think India at this stage where we are hardly 65years post-independence is going through a very high amount of corruption, fraud and malpractices. Well we must not forget that all developed countries went through such a phase including US but some major reforms and policy changes took place after that which actually made them what they are today. I think it’s high time we also raise our voices against corruption and reject strongly the fact that someone’s life in India is considered so cheap. A little out of the way but I think “Jan Lokpal Bill” is a onetime opportunity which we all have and hence we all must support if we agree to it. To support Lokpal or not is ofcourse subjective and debatable.
The Satyendra Dubey story took place like around 8 years back but one good thing is that the situation in terms of “development” in Bihar now has turned around. Two of the projects are toll road projects in which the operator needs to be assured of returns by collecting tolls. And now we can see this spirit and confidence among corporations of taking up such projects. Bihar has become one of the first states in the country to use mobile tech for keeping a track on the progress of the projects.
The private sector participation is being seen not only in Bihar but also elsewhere in the country. The private sector is bidding aggressively for projects even which government is financially skeptical about. You may wonder what happened suddenly? Well, the changes in the bidding norms has led to an increase in participation of private players. Some even say it is because of the few offerings from the government. GMR infra won a 5700 crore national highway project connecting Rajasthan and Ahemadabad. Eight similar offer have been received by NHAI recently.
As discussed in class, the government offers upto 40% of the project cost viability gap funding to support projects in areas where returns may not be that fruitful.
So the summary of some of the key-points could be as follows:
1.Bidders are now ready to pay a premium for the road projects
2.Roads have put out a good policy helping it attract more and more investments
3.Road traffic is expected to grow at 7-8% growth.
I have purposefully skipped the details of the project because I think the learnings behind the project are more important than the project itself.
I had discussed this in one of my journal entries but I thought this could be discussed amongst the other classmates as well.Kindly post your comments on the same, especially on the issue of attracting private players in the rural sector.
Education ,I believe is one among the decisive factors that determine the technological progress of a nation. Eventhough there are other priorities at the rural sector, education ,I believe is a fundamental right and is something that no one should be denied. Not very surprisingly, in the rural scenario, the scene is very bad.Be it, roads, building infrastructure, electricity, water supply , the rural education sector requires a certain upliftment from its current status.
The primary facility requirement for a school or an education centre is a building to house the numerous children. Be it, classrooms, office rooms, or other complexes, building infrastructure forms the backbone of the education sector in general. A recent survey tells us that 62% primary schools in Assam, 34% in Andhra Pradesh and 30% in Meghalaya have just one classroom. Most of the schools at the rural sector, today lack such basic facilities. In many cases, schools are made out of thatched roof or temporary structures which wait for a small drizzle or a light wind to collapse down.
Most of the families are reluctant to send their children to the nearby schools because they are far away and it’s both difficult and costly, to ply to and fro. Thus transportation infrastructure, primarily roads find its need here.
According to data available from the MoP, in India, out of an estimated 587,556 villages about 150,000 are yet to be electrified. A general issue with schools in the rural sector is the lack of power supply.Electricity and power are essential right from performing routine activities to running machines and equipments. Its absence would therefore mean inefficiency and zero productivity.An interesting survey shows that among teachers who were paid to teach, absence rates ranged from 15% in Maharashtra to 71% in Bihar.
Lack of teaching staff in most of the rural areas is a major problem. A solution that lies ahead to this can be achieved through the telecom sector. With modern teleconferencing and internet facilities a rural area could be taught through online or virtual teaching methods. Similarly, computer literature, and setting up of internet facilities or telephone connections becomes inevitable for technological development, and all of these depend on the telecom infrastructure.
Health, sanitation and water supply also form a basic requisite for an educational institute. A study of 188 government-run primary schools found that 59% of the schools had no drinking water and 89% had no toilets.With the lack of all these, rural schools, are in many cases worse than a poultry farm.
Definitely what the government must do is to strategically include Private participation in this sector. As from the cases we have seen and with our knowledge on a PPP project , we know that with their involvement comes efficiency and faster project completion rates . Now as it is obvious, the private sector has not shown interest because they see very low returns here. Incentivizing them is the actual question.
Here what I propose is to include a rural education project also as a bidding criterion in huge urban infrastructure projects. Thus ,the bidders will have to take up these projects and complete them on time so as to continue with their urban initiatives .Also to incentivize them the revenues obtained from the rural projects could be tax exempted
.Be it, Roads, buildings, health and sanitation systems, telecommunication facilities, definitely, with our relatively lower rate of progress from the government’s initiatives, I believe that Private penetration is required so as to uplift the case of the rural education sector and until then, an educated Rural India shall stay, an unfulfilled dream.
This time Japan has certainly stretched their imagination bordering on science fiction. They have come up with this crazy idea where people will be living on gigantic cities in the ocean. And not just cities, whole districts and even countries can be formed.
The concept is known as green float & they even want to try for zero waste & negative carbon emissions by incorporating all sorts of "green technologies" such as complete recycling of all waste and building enormous artificial ecosystems.
While right now no one has any plan or the money and all this is still science fiction, I feel that if people do some serious research on these concepts, they may actually come up with solutions that are also very relevant to current issues. Work on such concepts can result in spin-offs that can be of great use for tackling many current infrastructure problems like waste recycling, water treatment & desalination, zero emission policy, "green & sustainable development", use of alternative energy (like solar, etc..), vertical farming, transport systems, lower maintenance systems, and many more.
There are other crazy ideas like Tokyo Pyramid, which also try to tackle the issue of space in future living and other proposals. This Japanese firm is known for coming up with really ambitious proposals. Whether we can actually invest in such schemes is very questionable, but some of their technological proposals are certainly worth putting some research into as they can be pertinent to improvement of current infrastructure.
This is from a newspaper article : -
"...Green Float: The futuristic concept that sees humans live in giant skyscrapers on floating water lilies in the middle of the Pacific.
Humans in the future could live in mini floating cities that drift across the Pacific as if on giant water lilies.
The startling new concept has been dreamed up by Japanese technology firm Shimizu and is designed to be a way of harnessing green technologies and creating carbon-neutral cities.
The Green Float concept involves a number of cells, each one kilometre wide, that house between 10,000 and 50,000 people.
The majority of people on the cells would live in huge towers 1km high surrounded by lush green fields
Each individual cell would be free to float on the Pacific Ocean near the equator but could also be joined together with other cells to form larger towns and even cities.
A group or modules, a collection of cells, would become a country in its own right.
Most people in this brave new world would live in a 1 kilometre-high ‘City in the Sky’ at the centre of each cell. More people would live in residential areas around the edge of the cell.
The central towers would be surrounded by grassland and forests and be self-sufficient in terms of food, while livestock and other farming would take place in 'plains' also surrounding the tower - all built on a lattice of 7,000-tonne honeycomb pontoons.
The towers would be built from super-light alloys with the metal deriving from magnesium in seawater.
The imaginative plan is designed to create a future carbon-neutral society and the Shimizu developers claim that living on cells in this way would cut carbon emissions by 40 per cent.
The floating cells, each with a City in the Sky structure at its centre, can join together to form larger modules
The City in the Sky skscrapers are designed to be carbon negative with extensive environmental technologies and recycling facilities built in
The cells would create zero waste and recycle every product and covert waste into energy using new green technologies. Islands of waste would drift around the ocean and could be ‘harvested’ to provide energy
The location of the islands is key to their success too, the designers claim.
Each group of cells would be near the equator where the climate is at its most stable and a range of technologies would be used to protect the floating cities from tidal waves and extreme weather.
To protect the inhabitants from large waves, strong elastic membranes would be attached to the lagoons around the outer edge of the cells, with the shallows above the membranes standing 30 feet above sea level.
Shimizu scientists calculate that the water pressure difference between the lagoons and the ocean would limit the movement of the membranes and buffer the force of the open sea waves.
Seawalls as high as 100 feet could also be constructed. And tsunamis in the open sea are far less dangerous than those that hit coastal areas, the designers say.
A country consisting of one million people would be formed after modules joined together one by one
Lightning rods would be fitted around the circumference of the towers and mesh lightning conductors will be placed on the exterior walls to protect against lightning strikes.
Shimizu wants to develop the first cells by 2025 and is concentrating on developing the technologies to make it happen. The concept was displayed at a recent Japanese university conference.
This is the not the first outlandish idea that Shimizu has come up with. The firm also proposes encircling the moon in a belt of solar collectors that would collect solar energy and transmit it to Earth....."
India's tropical location makes it naturally favoured to make use of huge amounts of solar energy. Right now there is a 35000 sq. km area in the Thar Desert that is allocated for any proposed large solar projects, and the estimate is that they could harness anywhere upto 700 to 2100 GW depending on efficiency.
Note : As a reference for comparison, the installed power generation capacity as of now 162 GW (June 2010) and the demand is likely to cross 1 GW in the next 20-30 years. We can in theory extract more energy than we'll ever need for the next several decades. As a statistic the total energy available is so great that even with 10% efficiency of harnessing, we still have more than 1000x the energy demand in 2015 (Wiki Reference)
The problem here though is the cost of investment. Right now this would require huge areas of land and the problems of land acquisition and the associated cost is very prohibitive. A better way of using the available space is to go 3-D and try for rooftop systems. However to make this feasible requires the technology to become substantially cheaper.
Right now the cost of production ranges from 15 to 30 per unit compared to around 5 to 8 per unit for conventional thermal energy. (Aside : For thermal energy, that's far more than our EB bill rates even with the revised tariff -- profitability vs affordability issues.)
Even the best solar cells are only about 25% efficient which is close to the theoretical limit, and that's as good as we can go. However they are very robust and can last for 30 yrs + at maximum capacity.
At present the renewable energy scenario stands at just 16 GW most of which is due to wind energy.
The Govt. has taken up a major initiative in this regard with the Jawaharlal Nehru National Solar Mission, which though is still in planning phase. You can check this out http://en.wikipedia.org/wiki/Jawaharlal_Nehru_National_Solar_Mission
If we could sustainably get into solar power production then over several years our import bill (most of it on oil) can also be drastically reduced.
We have to accept that with the limits on coal and petroleum reserves, solar energy is the future. But still there is a lot of ground that needs to be covered.
India, on the verge of a double digit GDP growth needs to capitalize on the Obama factor if it has to meet its needs in almost all sectors. A rather overly regulated economy preventing FDI in the infra sector was communicated by the U.S. Commerce Secretary Gary Locke, calling for further policy shifts. But the U.S no longer seems to be the driving force in the South Asian economies and now, more than ever, they seem reliant on these economies towards providing jobs / opportunities for the Americans themselves. There is probably no better opportunity than this for India to capitalize upon. But, like all bureaucratic initiatives, time seems a defining factor which brings us back to the need of direction. This direction stems from the need of strong leadership.
On whether Manmohan Singh paints a picture of sound leadership, is a very debatable topic in itself, however, the lack of leadership in the state of Maharashtra is something unheard of. In a people-rich country, presence of leaders, or better said as, presence of politicians with a majority behind them, seems lacking. How can a multi-crore project function sans leadership? Well, at least there will be fewer ‘Adarsh’ like scams that can add to the public budget. Forget the concept of good and pro-active leaders, going against all vigilant odds to satisfy private-partnership, here, we have no leadership, nobody!
But however the issue of political instability does not seem to be nascent in India alone, the U.S is seeing turmoil as well and as a result, economic policies will get more attention and probably get diluted before their actual implementation with India. Under the backdrop of a successful $10 billion deal we seem to forget the lack of direction in the political set-up of the U.S which may cause otherwise.
The required sense of direction is more than just plain leadership; it is to follow by example. Consider the recent bilateral agreement between Russia and Norway on settling their border disputes over the North Sea, it was carried out very smoothly, in a very novel and diplomatic manner which now becomes a model that the world can replicate (especially when it comes to such volatile issues). However, in our case of establishing PPP’s as a norm, we are in need of a similar example in all states. We have a framework in place, but a successful PPP with NO limitations needs to be set as an exemplar.
Bottom-line, as Vikram Kapur had mentioned, we need funds from wherever we can garner them, for which we need FDI, for which we need the US, for which we need to woo Obama! But as the NPM goes, most of this FDI should fulfill the operational directives of the services rather than controlling the strategic administration of resources, for which Manmohan needs to think beyond his bleak chance of a second term in office!
I know that some of you would be familiar with this link -- but this site has a lot of information with news and updates on PPP projects in India. Do check it out if you didn't know.
Hey everyone, CEA's debate for tomorrow is on the subject of the Commonwealth Games. It will be nice if everyone will attend this as I am sure a lot of pertinent points will be raised on all the botch-ups that were made and it is very relevant to what we study as well.
I also think they will take up the Olympics Hosting issue at the end. For a point :- The paragraph below is from Wiki.
Costs
The initial total budget estimated by Indian Olympic Association in 2003 for hosting the Games was 16.2 billion (US$364.5 million) but escalated official total budget estimation in 2010 became 115 bn ($2.6 B), which excludes non-sports-related infrastructure development in the city such as airports, city beautification and roads.[18]Business Today magazine estimated that the Games cost 300 bn ($6.8 bn).[19]The 2010 Commonwealth Games are the most expensive Gaming event ever.
There was an article once in the Hindu which had a big list of incomplete infrastructure when the commonwealth games was inagurated. I can't find it, but when I do, I'll post it in the comments.
India, in many ways is reeling under an acute shortage of water.The main reason cited,which was highlighted during the class, was the need for more efficient use of the available resources through the construction of appropriate infrastructure.
South India is blessed with the presence of numerous rivers but the situation in a state such as Tamilnadu has reached new levels of desperation.Chennai meets a significant portion of its demand from its Desalination Plant located at Minjur,35km north from the city,which has been in operation since 2009.The success of the project has raised many eyebrows and a second Desalination plant at the cost of 1000 Crore is to come up at Nemmeli in a couple of years.The move towards Desalination has been rather nonchalant since the first plant had come up.
Chennai city draws about 600 million litres of water per day from lakes and reservoirs surrounding the city.The present Desalination Plant provides 100 million litres of water per day,making it a very vital component of the water supply chain.However,there have been no initiatives towards replenishment of existing sources or even to repair the losses that occur due to leaks. The need for a new plant can be avoided by stemming up measures in this front.
Water from a Desalination Plant is naturally more expensive and at present,it is priced at Rs 49 per kiloliter,which is nearly four times the normal price of getting water from lakes and reservoirs.Moreover,the 600 Crore Plant at Minjur is based on a DEBOOT (design-build own-operate-transfer) plan,due to which price fluctuations can occur after the firstyear of operation.The Government saw this in positive light as after the first year of operation, elections are due and there is no sense of incumbency among the people when their water demands have been met at a relatively lower price.This issue has escalated to the extent of M.K Stalin,one of the forerunners for the CM position, promising 100 Desalination Plants along the entire south-east coast if his party is re-elected.
Another neglected viewpoint is the environmental damage that a Desalination Plant could cause.There is a need to dispose the highly salty water that is creates by the process of reverse-osmosis.This is normally taken to a distant part in the ocean and dumped.But since its density is much higher than the surrounding sea-water,it settles at the bottom of the ocean floor without mixing with the surrounding water.The high concentrated salt content on the ocean floor is harmful to any source of life and a long term problem in this regards can easily be cited as well.The proposal of 100 Desalination Plants would go miles in fuelling the long term problems mentioned.
Going for Desalination becomes a prerequisite only in the Gulf Countries where,there is no water source on land.Moreover,Mumbai has four times the population of Chennai and it still has a much better water supply network.The Government needs to recoup all its resources towards the re-engineering of its existing resources to maximize throughput which entails minimal investment as well.The only positive is that the opposing party has not come out with a bigger number of Desalination Plants as an election promise!
From the starting of the course, i wish to see and analyze the problems faced by the labours in the construction industry, especially those face by the women and try to have a solution to them. But we couldn't have it in our portion, so i thought of having a discussion in here on this topic. I read many publications on this issue but only very few of them were good at explaining the real problems faced by them. Here is one of the very best article. It is a kind of survey and view of the real women workers in the industry.
National Commission for Women Status of Women Construction Workers http://images.photogallery.indiatimes.com/photo.cms?msid=2876543
Although organizations like National Association of Women in Construction (NAWIC), but how much extend they solve the problems. A lot of public hearing of women construction workers have been held in various cities under the National Commission for Women, but i really doubt whether it is being implemented properly or not. The main reason for the negligence of this problem is may be due to the less percentage of their constituency in the industry.
Recently, CWG have hogged the limelight for a variety of reasons. The former sports minister himself acknowledges the fact that a lot of money which could have been otherwise used for other important avenues has been spent wastefully on these games. But the question myself and a lot of other Indians ask is, " Is investing thousands of crores of rupees in sporting events that bad? Then why do countries fight for hosting such events? Are their any benefits?". Luckily I have a come across an article in The Times of India which gives us a decent explanation to the questions posed.
In a very glad move, the Tamil Nadu government is all set to initiate the Chennai Unified Metropolitan Transport Authority (CUMTA) Bill. Finally, it seems, the government has realized that simply building flyovers and widening roads on every congested route is not going to relieve it permanently from the traffic woes. The government's effort of addressing the issue in urban transportation on a larger scale is certainly commendable.
Basically, the prime function of CUMTA will be, but not restricted to, the integration of all the modes of transport- buses, suburban trains & MRTS.
This means that all the transport infrastructure development in the city will be overseen by this agency by developing a Comprehensive Transportation Plan (CTP) for the same. The bureaucratic delays and lack of coordination between the various agencies like MTC, Southern Railways, Chennai Corporation, Suburban Municipalities etc. which had hindered the implementation of projects in the past would no longer be a problem.
The main objective of the CTP is to promote the public transport sytem in the city, which has consistently been losing its share against private mode. Between 1992 and 2008, the percentage trips made in buses fell from 39% to 26% (source: CMDA). Although, CMDA in it's Second Master Plan, being highly optimistic, has aimed to increase the public-private share to 55-45, the intermittent survey conducted in 2005, showed an underwhelming 28-72 split. To address this issue, CMDA has come up with Bus Rapid Transit Ways(BRTW) project along 7 routes, one of which is the IT corridor. These routes will have a dedicated corridor for buses, and in conjunction with the ITS, the bus transport would be made faster, safer, reliable and comfortable.
The major advantage to the commuters by the integrated mode, is 'single ticket travel'. To illustrate: If a person residing in Medavakkam(suburb in south Chennai) wants to go to, say, Parry Corner (CBD), the most convinient option is to take a bus from Medavakkam to Velachery MRTS station and then take a train to Parry Corner. This is more convenient than to take a direct bus to Parry Corner because the city limits starts from Velachery, and the journey time of bus drastically increases as it moves towards the CBD, while the MRTS is much faster and mostly run under-capacity. With the introduction of single ticketing system, the commuter can do away with the standing in queue at the railway station. With the introduction of BRTW, which are designed to act as a feeder to other modes, the travel would be unperturbed by the traffic congestion, which would will attract significant patronage towards public transport. This is bound to relieve congestion to a considerable extent, cause reduction in road accidents, reduce vehicle emission.
Having said that, the practical implications will only be known after the actual implementation of the system. Hopefully, it turns out to be a success and other Metropolises would follow the suite very soon.
The above article might not be related to Infrastructure engineering but rather more towards Infrastructure engineers.
Indians have always had the pride to boast the IT sector, IT boom, white-collared job and so on. But unfortunately even such elites have to confront the grim reality of the Indian Infrastructure. A world bank studies says, India would need to train three times as many civil engineers as it does now to meet its infrastructure needs. There is an alarming dearth of civil/infrastructure engineers. The scenario has completely changed since 1990, when Civil outperformed IT.
Lack of right expertise/infrastructure engineers in this sector have led to whopping losses in the country. Faulty designs by the incompetent engineers have led to catastrophic failures. Rickety bridges crumbling under heavy rains, unfathomable potholes in roads, daily power cuts, water shortage, poor sanitation have all lowered the comfort zones of the users.
You find big projects successfully running in other parts of the world like Dubai. They use their potential human resources very wisely. The irony is that most of these workers/engineers migrate from India in lure of high salary.
So I feel that, it's the responsiblity of our government and other companies in this sector to stop this civil-brain drain by incentivizing these engineers in every aspects possible. A lot of trust and security have to be built around this sector for people to join and continue in this field.
I believe it is one of the countless instances where the government tries to mislead the public by introducing the so called "targets" without necessarily examining the feasibility of them.
Courtesy: Data for the Graph "Infrastructure Development in India and China—A Comparative Analysis" M. Julie Kim and Rita Nangia August 2008.
If we are to look at Indian and Chinese decisions on infrastructure development from the point of view of"to where/which sector" the money was put in, as against "how"; a strikingly different part of the game reveals itself, or so I believe. For instance take a look at the much higher growth in the Telephonesectorin China as against that in India during the period of 1980-90 and 1990-2005. Did you notice some other parameter that shows a similar trend? Yes , Annual GDP Growth? We are again back at the question as to 'does greater GDP growth leads to more telephone lines or vice-versa?'
Lets deviate a little, look at Sardar Patel Road congestion issue that has come up; the proposal is a 145 cr (114 cr for land acquisition) grade separator. Imagine decongestion is feasible, at least for a few years,through the implementation of, say, congestion pricing, or for that matter any other Intelligent Transportation System (ITS) for a reasonable investment of 20 cr. Looks like a saving of 125 cr isn't it? ; can't this be suitably used elsewhere, perhaps as research funding for stimulating the needed technological development which in turn will catalyze rapid economic development.
So compare now, for the sake, telephone and ITS; and you will see that they are/rely on the telecommunication backbone of the country. So essentially telecommunication, though indirectly, hypothetically helped us to postpone the congestion in Sardar Patel Road and help us find new technologies.
So could this logic explain why China overtook India in the economic race? So can we apply the same and cash in?, entering the virtuous circle, apply technology(which is by all means a part of infrastructure)>fund research>develop the economy>more research>better infrastructure>all kinds of development...
Before we set the ball rolling, lets reflect for a moment; are we at the right time and going in the right direction? 50% of our population is below 25 years of age where as 80% of Chinese population is above 15; We are at a better position of 79 in Failed States Index where as China stands at 62. Will our policy of promoting equality right from the start turn the tides in our favor? Or will, like China, accepting initial income inequality as an inevitable effect of economic development be the only way out? Will China's 10 point growth sustain?If so for how long?
Are we to shoot for the stars, with the hope that even if we miss we will land in the moon?
Reference:
"India’s Economic Growth and Market Potential: Benchmarked Against China" G.K. Kalyanaram GKAssociates
"Is China's Economic Growth Sustainable?" Ali Wyne
"Infrastructure Development in India and China—A Comparative Analysis" M. Julie Kim and Rita Nangia
I think it will be interesting to see how the infrastructure of Delhi is geared up for the Commonwealth games. With our national pride at stake, given the grandeur with which China put up their Olympics, it is an extremely important event for the country and the government seems to have realized this. Here's a small article on Economic Times: http://economictimes.indiatimes.com/news/economy/infrastructure/Rs-35-bn-for-Delhis-infrastructure-ahead-of-Commonwealth-games/articleshow/5153640.cms
We have spoken about political will at many points in the course. A stimulus like the Commonwealth games forces the country to develop infrastructure on a fast-track basis. The SAF Games in Chennai, for instance, triggered rapid infrastructure development. After the games, the residential facilities built for the sportspersons were converted into housing facility for government employees, and the swimming pool, etc. are open to the public for use.
On the one hand, while the government imposes on itself deadlines like Sonia Gandhi's birthday, I think hosting such events of international importance could be a potential area for fast-track world class infrastructure development in urban cities.
Did you notice this news article in today's 'The Hindu -24.10.09'.
Planning Commission adviser says the Government has set a target to spend around $518bn for infrastructure facilities by 2012. Well, we knew it, isn't it - Our Advisor said so! Accordingly, 30% is expected from private sector (aiming at PPP model) which is around $150bn, another 30% from budgetary resources and the rest of 40% from commercialized budgets of NTPC and power grid (Well, is this feasible? Can NTPC and Power grid aide this much amount?). The Adviser, Mr. Gajendra Haldea, planning commission, also states that they expect a quantum leap in the infrastructure development during the 11th FYP from 5% to 9% (Is our present rate only 5%?). they also expect PPP model from developed countries...Because markets in India offer huge opportunities (always quoted statement)and returns on capital would be higher than in a developed country (Ok...facts here). How does all this sound?
Following Professor Sitaram's lecture highlighting the importance of heroes and how even public companies can also succeed, here's an interesting story which I came across some time ago.
The Bihar Rajya Pul Nirman Nigam, which was on the verge of being liquidated, has now turned the corner and built over 330 bridges in three years. The cause has been championed by Mr. Pratyaya Amrit ( :-) ) , an IAS officer of the batch of 1991.
The best part about this story is that it was effected in Bihar. Presently, the company is looking at expanding beyond Bihar and building bridges in other states!
The takeaways from this story are multifold. For instance, Mr Amrit came up with the idea of the “Mobile Inspector” system where all Executive Engineers have a GPRS enabled sim card in their phones. They can go to the site, photograph the bridge, take out their pencil stylus and fill in details like the name of the bridge, its location and status. It is then directly sent to the chairman who sees it on his computer in his office. Everyday, the Chairman monitors the progress. There is thus, a new sense of accountability.
The story is a great read and was shared to me by Vikas. I felt it has a lot of importance for this class. Comments please?
