[Infrastructure] PPP challenges & reforms, 3P-India, highway projects, Industrial corridors, DMIC vs DFC, Golden vs Diamond quadrilateralDevendra Vishwakarma
- [Act 1] Infrastructure Corridors GK/theory
- C1: (Rail) Dedicated Freight Corridor Project
- C2: (Road) Industrial corridors: DMIC
- C3: Other industrial corridors
- C4: Golden vs. Diamond Quadrilateral
- C5: (Road) North South, East West corridor
- Budget 2014: industrial corridor announcements
- [Act 2] Road infrastructure
- R1: National highway authority of India (NHAI)
- R2: NHAI: Where do they get cash?
- R3: Highways in troubled areas
- R4: Budget 2014: Highways related announcement
- [Act 3] PPP & Infrastructure: challenges & reforms
- P1: Why infrastructure important?
- P2: Government role in Infra Development?
- P3: PPP Challenges
- P4: PPP reforms: Economic Survey points
- P5: 3P India: Jaitley’s solution to PPP problems
- P6: Infrastructure Financing
Economic Survey Ch11. Energy, Infrastructure and Communications. Total four subparts
- Energy & communication
- Roads, Industrial corridors, PPP, Infrastructure problems & reforms
- Shipping, aviation
- Railways infrastructure
[Act 1] Infrastructure Corridors GK/theory
For stupid MCQs: list of rail and highway corridors:
C1: (Rail) Dedicated Freight Corridor Project
|Jawaharlal Nehru Port in Mumbai to Dadri near Delhi||from Dankuni near Kolkata to Ludhiana in Punjab|
|Japan International Cooperation Agency (JICA)||World bank funding|
|Starts: Dadri in UP||Ludhiana, Punjab|
|Ends: J.Nehru Port near Mumbai||Dankuni, W.Bengal|
- Total 3000+ kms. ~96% land acquired.
- Land compensation as per Railway Amendment Act’08
- Only electric trains =less greenhouse gases.
- More transportation capacity
- LESS unit costs of transportation
C2: (Road) Industrial corridors: DMIC
- 2006: MoU India and Japan
- 2008: DMIC Development Corporation as the implementing agency. (and NOT NHAI)
States covered under DMIC
- above six states list, as per PIB-April 2007. and in July 2007, Commerce ministry elaborated that it’ll pass through Madhya Pradesh as well.
- Total length: 1483 kms
- Railways designing (Western) Dedicated rail freight corridor to extract maximum leverage with DMIC.
C3: Other industrial corridors
|Chennai-Bengaluru-Chitradurga||KarnatakaAndhra PradeshTamil Nadu||Japan|
|Bengaluru-Mumbai Economic Corridor (BMEC)||Maharashtra, Karnataka||United Kingdom|
|East Coast Economic Corridor (ECEC)||linking Kolkata-Chennai-Tuticorin||ADB|
|Vizag-Chennai Industrial Corridor (VCIC)||Andhra Pradesh and Tamilnadu||ADB|
|Amritsar-Kolkata Industrial Corridor (AKIC), 2014||150-200 km band on either side of the Eastern Dedicated Freight Corridor (EDFC) in a phased manner. 7 states:
C4: Golden vs. Diamond Quadrilateral
|Golden Quadrilateral||Diamond quadrilateral|
|under NHAI||under Rail budget|
|To connect four main cities of India Delhi-Kolkata-Chennai-Mumbai. ~6000km length||To connect major metros through High Speed Rails.|
|(length wise, longest to shortest)
C5: (Road) North South, East West corridor
|South||Cochin (Kerala), Kanyakumari + Salem (TN)|
Budget 2014: industrial corridor announcements
National Industrial Corridor Authority
- to coordinate the development of the industrial corridors,
- with smart cities
- linked them all using transport connectivity
- HQ Pune. (100 cr allotted)
Additionally: Three new smart cities in the Chennai-Bengaluru Industrial Corridor region:
- Amritsar Kolkata Industrial master planning will be started.
- Bengaluru Mumbai Economic corridor (BMEC) and Vizag-Chennai will be developed.
[Act 2] Road infrastructure
|National Highways||Union Government||State capitals|
|State highways||State Government||State Capital to District HQ|
|district roads||Zila Parishad||District HQ to tehsil and Blocks|
|village roads||Gram Panchayat||Villages to neighboring towns|
|other roads||>46 lakh kms|
|state highways||1.4 lakh kms|
|national highways / expressways||~93,000 kms|
R1: National highway authority of India (NHAI)
- Statutory body under ministry of road transport and highways
- it’s responsible for national highways’ development, maintenance and management
- Three main projects
- National Highway developmental Project (NHDP)
- Golden quadrilateral
- north-south + East-west corridors
- NHDP phase 6 started from 2013.
R2: NHAI: Where do they get cash?
- 1999: Government imposes CESS on petrol and (high speed) diesel.
- Rate: 2 Rupees per litre
- This FUEL CESS money goes to Central Road Fund (CRF) [in public accounts and NOT in consolidated fund of India].
- from CRF, money goes to four places:
- state highways
- rural roads
- rail over bridges
- NHAI’s national highway Development Program. (0.50 paisa from every two rupee)
- NHAI also borrows fund by issuing bonds in Debt market.
- World bank, ADB, JICA also gives them fund, mostly used for LWE areas.
R3: Highways in troubled areas
|PBJY||FDI and tax reliefs|
R4: Budget 2014: Highways related announcement
- Expressways in parallel to Industrial Corridors. This will help faster transport of goods across country.
- more funds for NHAI (>37k.cr) and North East road Development(3k.cr)
- Will built 8500 km highway in FY2014
[Act 3] PPP & Infrastructure: challenges & reforms
from the points given in Economic Survey:
P1: Why infrastructure important?
- Population + Economic growth= heavy pressure on Transport + Energy + communications.
- So, if these 3 not improved = GDP bottleneck + poverty rise + costly essential services.
- Without environmentally sustainable infrastructure= No inclusive growth
- Lack of infrastructure = Poor GDP growth rate
P2: Government role in Infra Development?