Infrastructure is key for Economic growth
“Infrastructure as a sector is not just an employment generator but also a growth engine. By ensuring that land acquisition processes are less complicated and with improved cross ministerial coordination to get projects cleared, the cost of projects has been optimized”, the Minister of Road Transport, Highways and shipping said.—Nitin Gadkari union Transport Minister, he also further added that Infrastructure sector has the potential to boost the country’s GDP growth by 3% and the centre is making all efforts to achieve this target. Gadkari, who was the chief Guest at the launch of Infra circle—an Infrastructure focused Digital Platform of News corp VC Circle, said that “India ‘s shipping sector has witnessed a better performance this year with 12 ports showing profits to the tune of Rs.6,000 cr. We intend to make this figure Rs. 7,000 cr. In the next financial Year’.
The Government is planning to develop an integrated system of roads, railways, airports, and water ports and is also working on Port-led industrialization said Nitin Gadkari which will pave way for multi modes of transport and reduce pollution from the atmosphere, which is a chronic issue in India. Gadkari also further stated that they have come across new concept, which has emerged as the modern concept at a Global level.They have constituted a consultant to study on Multi-modal transport system, whether it can be incorporated and constructed in cities like Varanasi & Nagpur.
Nitin Gadkari also was of the view that efforts of Port-led Industrialization will be a Game-changer.
There will be 111 rivers which will be connected into Inland waterways, there are plans for building a river port, which will be like bus stand, railway station. He further added Ministry’s plans of 40 water ports including three modal hubs on 1,620Km stretch of Ganga river between Varanasi and Haldia.” We have to think how we can shift to waterways in order to reduce logistic cost”, said Nitin Gadkari. These ports are drivers of growth process, Government is also planning to construct Rs. 800crore passenger terminal in Mumbai. He also further stated there are agreements signed for 60 Cruises. For the first time the government has proposed the construction of 12 express highways across the country. The Government was building two Rs. 15,000cr.bypasses, which would relieve traffic congestion and pollution. Gadkari also further went one step ahead by inviting Indian Investors to be part of Infrastructure drive for building infrastructure across the Country. Debris is collected at Ghazipur Mandi which as used as dumping ground for the construction of highway between Delhi & Meerut. Gadkari also reiterated that his Ministry has enough funds to support the transport Infrastructure Projects. He also further added that his Ministry targets to implement Rs.25Lakh crore worth of projects in five years, out of these Rs.15 Lakh Crore will be in Road sector, and Rs.10Lakh Crore in Shipping sector.
Why Infrastructure is a key driver for Indian Economy?
Infrastructure is a key driver for the Indian Economy, as the sector is highly responsible for oiling the wheels of progress and it enjoys intense focus from government for initiating policies that would ensure time bound creation of world-class infrastructure’s in the country. Infrastructure includes power, bridges, dams, roads, and urban infrastructure development. In August 2016, India jumped 19 places in World Bank’s Logistics Performance Index (LPI) 2016, to rank 35th amongst 160 countries.
India needs Rs.31 trillion (US$454.83 Billion) to be spent on infrastructure development over the next five years, with 70% of funds needed for power, roads, and urban infrastructure segments. The Indian Power sector itself has an investment potential of US$250 bn in the next 4-5 years, providing immense opportunities in power generation, distribution, transmission, and equipment, according to Mr. Piyush Goyal, the Union Minister of coal, power, and renewable energy. The Indian construction equipment industry is reviving after a gap of four years and is expected to grow to US$5 Billion by Fy2019-20, from current size of US$2.8bn according to report released by the Indian Construction Equipment Manufacturers Association (ICEMA).
India is seeing a rapid paradigm shift by inviting international Investors in the Infrastructure space. Many Spanish companies are keen on collaborating with India on Infrastructure, high speed trains, renewable energy and developing smart cities.
The Asian Development bank (ADB) has proposed over US$ 63 MN loan to develop the first coastal corridor, namely the Vishakhapatnam-Chennai industrial corridor,which is expected to bring the Manufacturing and export industries to the East coast.
Airport authority of India (AAI) plans to develop city-side Infrastructure at 13 regional airports across India, with help from private players.
The Government has announced highway projects worth US$93 billion, which include government flagship National Highways Building project (NHDP). The Government of India is taking every possible initiative to boost the Infrastructure sector. GOI plans to use the New hybrid-annuity model for allocating contacts under the public Private partnership(PPP) in highways, NamameGange and railway projects, which will help overcome the challenges faced by private developers in the Build-operate-Transfer (BOT) Toll and BOT- Annuity models.
PM Modi indicated that Government has rolled out stuck projects worth Rs.4Lakhcrore (US$58.69), stating that Infrastructure development is the government’s top priority in order to improve economic growth. Indian Port sector is poised to mark great progress in the years to come, by the end of 2017, the port traffic will amount to 943.06MT for India’s major ports and 815.20 MT for its minor ports. We also find that Indian Aviation Market is expected to become the third largest across the Globe by 2020 according to industry estimates. The sector is projected to handle 336 million domestic and 85 million international passengers with projected investment to the tune of US$120 billion. Indian Aviation industry which accounts for 1.5% GDP has been instrumental in the overall economic growth.
Highlighting the importance of circular economy, Gadkari projected a ‘waste to wealth’ economy of Rs.10lakh crore. Which will help create value from sewage and waste land. To promote pollution free transportation the government was coming up with mass rapid Transport driven by power. Pushing the Government’s Make In India agenda the Minister gave the Mantra ‘Be Indian, Buy Indian’ and invited Indian companies to join the government’s initiative to drive this massive change in Infrastructure sector. In future economic viability lies in logistics, road amenities, tourism, bus ports, water ports and multimodal hubs. The Minister also further stated that the development of Automobile hubs near the port will lead to a growth of 22% for the automobile sector, and the cost will come down to 25-26%.
By Integration of roadways, railways, port-led Industrialization, airports which would be a game changer for oiling the wheels of progress, and revolutionizing the wheels of production towards economic development of our Country, which will take India towards Vikas in all aspects of Economic viabilities. Our PM Modis agendas can be traced from -Chankyas nitis—
LokNiti—towards the welfare of its citizens, develop the Nation on all four sides through Integration of water, Road, Airport whereby logistics will be diversified and improved for a Balanced Regional development.
Rajya Niti—Politically you become a stronger Nation if you strengthen your hinterland connectivity comparing yourself to other developed Economies of the world.
RannNiti—militarily too you become a stronger Nation as and when you strengthen the Ports, Airports and enhancing their security with the latest Updation of Integrated Infrastructre Technology, paving for a Nation’s Growth process.
The combinationation of all the three Nitis by our Pm Modi with his efficient team (PMO) have paved way for development for a better and sustained growth, moving India Vikas Ki Aur.
Dr.S. Sukanya Iyer