UES CEREE-COM ae Chapter 6 fvectment & Infrastructure 2Investment & Infrastructure The Role of Infrastructure in India’s Growth Infrastructure as a Growth Driver: + Infrastructure—physical (transport, energy, housing), digital (telecom, broadband), and social (health, education, sanitation)—has been central to India’s development. * Over the last five years, the government has significantly increased public spending on infrastructure. Need for Private Sector Involvement: * Government funding alone cannot bridge the infrastructure gap. The private sector needs to play a more active role. * Public-Private Partnerships (PPPs): For sustainable infrastructure grow both the government and private sector must work together.Investment & Infrastructure Trends in Capital Expenditure Capital Expenditure Growth: * Between FY20 and FY24, the government increased capital expenditure (capex) in key infrastructure sectors at an average rate of 38.8%. * National Infrastructure Pipeline (NIP): © Launched as a long-term roadmap for infrastructure investment. © Targets 111 lakh crore of infrastructure investment from FY20 to FY25. © Projects are monitored through the India Investment Grid, which helps track progress and identify bottlenecks.Investment & Infrastructure National Monetisation Pipeline (NMP) * Introduced in August 2021 to unlock value from existing public infrastructure by leasing brownfield assets to private players. * Targeted monetisation: 6 lakh crore for FY22-FY25. * As of FY24, %3.86 lakh crore worth of assets have been monetised, with roads, power, coal, and mining sectors leading.Investment & Infrastructure Challenges in Infrastructure Spending * In FY25, infrastructure capex was disrupted by general elections (due to the Model Code of Conduct, limiting new approvals). * Heavy monsoon also affected the progress of infrastructure projects. * Post-election recovery: Between July and November 2024, capex picked up, reaching 60% of the budgeted allocation for the fiscal year.Investment & Infrastructure Physical Connectivity Infrastructure: Railways * Steady Expansion of Rail Network: © 2,282 km of rail network commissioned from April to November 2024. * Rolling Stock Production (Trains & Coaches): © 17 new pairs of Vande Bharat trains introduced.Investment & Infrastructure Physical Connectivity Infrastructure: Railways Key Projects: * Mumbai-Ahmedabad High-Speed Rail (Bullet Train) © Approved in 2015; 508 km long. © Supported by Japan; project cost revised to %1.08 lakh crore. ° As of October 2024, 47.17% physical progress achieved. * Dedicated Freight Corridors (DFCs): © Transforming logistics by separating freight and passenger traffic. © 96.4% of the planned 2,843 km network is already operational.Investment & Infrastructure Physical Connectivity Infrastructure: Railways Sustainability and Modernization Efforts: * Net-Zero Carbon Target: o Indian Railways aims for 30 GW of renewable energy by 2029-30. © Solar (375 MW) and wind (103 MW) power commissioned so far. * PPP in Railways: © 17 projects completed (716,434 crore), 8 ongoing (16,614 crore). + Passenger Amenities: © Amrit Bharat Station Scheme: Redevelopment of 1,337 stations. © One Station One Product Scheme: Promotes local artisans. o Wi-Fi Expansion: Available at 6,112 railway stations.Investment & Infrastructure Physical Connectivity Infrastructure: Road Transport + India’s Expanding Road Network: © Total road length: 63.4 lakh km. © National Highways (NH) network: 1,46,195 km (just 2% of total roads but carries 40% of freight traffic). * Corridor-Based Development Approach: © Bharatmala Pariyojana: 34,800 km NH planned; 76% projects awarded, 18,926 km completed. © Char Dham Mahamarg Pariyojana: 825 km project, 620 km complet o High-Speed Corridors: Expanded from 93 km (2014) to 2,474 km (2024).Investment & Infrastructure Physical Connectivity Infrastructure: Road Transport Key Sustainable Initiatives in Road Transport: + Multi-Modal Logistics Parks (MMLP): 6 operational to reduce logistics costs. * Vehicle Scrapping Policy: 1.62 lakh vehicles scrapped. + Ropeway Transport Development: 15 projects in progress.Investment & Infrastructure Physical Connectivity Infrastructure: Civil Aviation Air Connectivity Growth + UDAN (Regional Connectivity Scheme): © 619 routes operational. © 88 airports, including 2 water aerodromes and 13 heliports, now connected. * Airport Expansion: © Cargo handling capacity increased to 8 million MT in FY24.Investment & Infrastructure Physical Connectivity Infrastructure: Ports & Shipping Enhancing Maritime Infrastructure * Vadhavan Mega Port (%76,000 crore investment). * Sagarmala Programme: © Modernizing ports, improving connectivity, boosting coastal shipping. o International Port Linkages: = Chabahar Port (Iran): 43% rise in vessel traffic. = Sittwe Port (Myanmar): Enhancing North-East connectivity.Investment & Infrastructure Digital Connectivity: 5G & Data Infrastructure * 5G Rollout: © 779 out of 783 districts covered. * Telecom Expansion in Remote Areas: © BharatNet: 6.92 lakh km optical fiber laid. © North-East, islands, and border areas receiving enhanced connectivity. * India’s Growing Data Center Market: ° Current capacity: 977 MW (105% YoY growth). © Expected market size: $11.6 billion by 2032.Investment & Infrastructure Rural Infrastructure * Jal Jeevan Mission: © 79.1% rural households now have tap water connections. o Ensured safe drinking water for 69.23 lakh households in quality- affected regions. * Swachh Bharat Mission (Grameen): © 3.64 lakh villages declared ODF Plus (ensuring waste management and hygiene). o Successful waste management models in Kerala & Madhya Pradesh.Investment & Infrastructure Urban Infrastructure * Swachh Bharat Mission-Urban: © Garbage-free cities initiative, solid waste management expansion. * Smart Cities Mission: © 7,479 projects worth %1.5 lakh crore completed. © 100 cities with Integrated Command & Control Centers (ICCCs). * Pradhan Mantri Awas Yojana (PMAY-U): © 1.18 crore houses sanctioned; PMAY-U 2.0 launched.Investment & Infrastructure Conclusion * Challenges: © Private sector participation in infrastructure is still low. o Need better risk-sharing, contract enforcement, and financing models. * Future Vision: o Sustainable, disaster-resilient urbanization. o More emphasis on PPPs, renewable energy, and last-mile connectivity.