[Infrastructure] PPP challenges & reforms, 3P-India, highway projects, Industrial corridors, DMIC vs DFC, Golden vs Diamond quadrilateral

Cover Economic Survey highways infrastructure PPP

[Infrastructure] PPP challenges & reforms, 3P-India, highway projects, Industrial corridors, DMIC vs DFC, Golden vs Diamond quadrilateral

  1. Prologue
  2. [Act 1] Infrastructure Corridors GK/theory
    1. C1: (Rail) Dedicated Freight Corridor Project
    2. C2: (Road) Industrial corridors: DMIC
    3. C3: Other industrial corridors
    4. C4: Golden vs. Diamond Quadrilateral
    5. C5: (Road) North South, East West corridor
    6. Budget 2014: industrial corridor announcements
  3. [Act 2] Road infrastructure
    1. R1: National highway authority of India (NHAI)
    2. R2: NHAI: Where do they get cash?
    3. R3: Highways in troubled areas
    4. R4: Budget 2014: Highways related announcement
  4. [Act 3] PPP & Infrastructure: challenges & reforms
    1. P1: Why infrastructure important?
    2. P2: Government role in Infra Development?
    3. P3:  PPP Challenges
    4. P4: PPP reforms: Economic Survey points
    5. P5: 3P India: Jaitley’s solution to PPP problems
    6. P6: Infrastructure Financing

Prologue

Economic Survey Ch11. Energy, Infrastructure and Communications. Total four subparts

  1. Energy & communication
  2. Roads, Industrial corridors, PPP, Infrastructure problems & reforms
  3. Shipping, aviation
  4. Railways infrastructure

Cover Economic Survey highways infrastructure PPP

[Act 1] Infrastructure Corridors GK/theory

For stupid MCQs: list of rail and highway corridors:

C1: (Rail) Dedicated Freight Corridor Project

Dedicated freight corridor map india

2005: By rail ministry + Japanese help
Western Eastern
~1500km ~1800km
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
  1. Haryana
  2. Rajasthan
  3. Gujarat
  4. Maharashtra
  1. Haryana,
  2. Uttar Pradesh
  3. Bihar
Ends: J.Nehru Port near Mumbai Dankuni, W.Bengal
  • Total 3000+ kms. ~96% land acquired.
  • Land compensation as per Railway Amendment Act’08

Benefits:

  1. Only electric trains =less greenhouse gases.
  2. More transportation capacity
  3. LESS unit costs of transportation

C2: (Road) Industrial corridors: DMIC

Map Delhi mumbai industrial corridor dmic

  • 2006: MoU India and Japan
  • 2008: DMIC Development Corporation as the implementing agency. (and NOT NHAI)

States covered under DMIC

  1. Delhi
  2. Haryana
  3. Uttar Pradesh
  1. Rajasthan
  2. Gujarat
  3. Maharashtra
  4. Madhya Pradesh
  • 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

Map industrial corridors in India

Industrial corridor States Funding
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:

  • Punjab, Haryana, Uttarakhand
  • Uttar Pradesh, Bihar, Jharkhand
  • West Bengal
Govt.ofIndia

C4: Golden vs. Diamond Quadrilateral

Golden Quadrilateral Diamond quadrilateral
1999 2014
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)

  1. Kolkata-Chennai
  2. Delhi Kolkata
  3. Delhi Mumbai
  4. Chennai Mumbai
Proposed routes

  1. Mumbai-Ahmedabad
  2. Howrah-Haldia
  3. New Delhi-Patna
  4. Hydrabad-Chennai

C5: (Road) North South, East West corridor

Under NHAI, to connect following
North Srinagar (Kashmir)
South Cochin (Kerala), Kanyakumari + Salem (TN)
East Silchar (Assam)
West Porbandar (Gujarat)

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:

Names not important except for profile based interview Q.
Ponneri Tamil Nadu
Krishnapatnam Andhra Pradesh
Tumkur Karnataka
  1. Amritsar Kolkata Industrial master planning will be started.
  2. Bengaluru Mumbai Economic corridor (BMEC) and Vizag-Chennai will be developed.

[Act 2] Road infrastructure

Type of roads
Name Responsibility of Connects
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

 

Lengthwise: (numbers not important but ranking is)
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:
    1. state highways
    2. rural roads
    3. rail over bridges
    4. 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

a.k.a. fodder for GS3 (mains)
SARDP-NE
  • In North East region- to connect state capitals, district HQ and remote places
  • NHAI provides 2lane/4 lane connectivity upto State capitals
  • build atleast 2 lane highway between state capital to district HQ
  • Connect all strategically important border area/remote places.
  • full name: Special Accelerated Road Development Programme in North East (SARDP-NE)
2004
  • Prime Minister’s Reconstruction Plan for J&K.
  • Construction of the Mughal Road (joining Jammu and Kashmir.)
  • double-laning of the Srinagar-Kargil-Leh Road (NH-1D)
2009
  • Road Requirement Plan (RRP) to make two-lane state roads and national highways in LWE areas.
  • Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and Uttar Pradesh

 

Highway reforms: Already taken
PBJY FDI and tax reliefs
  • Pradhan Mantri Bharat Jodo Yojana (2004)
  • Permitted PPP BOT (Build operate transfer) mechanism in highway construction.
  • To join state capitals with important tourism and economic centers.
  • 100% FDI permitted in road sector.
  • 100% tax exemption for companies doing highway widening projects
  • Private developers given right to collect and retain toll.

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?

  1. Population + Economic growth= heavy pressure on Transport + Energy + communications.
  2. So, if these 3 not improved = GDP bottleneck + poverty rise + costly essential services.
  3. Without environmentally sustainable infrastructure= No inclusive growth
  4. Lack of infrastructure = Poor GDP growth rate

P2: Government role in Infra Development?

Role of Government in infrastructure Development

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