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Showing posts from December 18, 2008

India's Infrastructure Deficit

§Highways
66,590 Km of NH (2% of network, 40% of traffic): only 12% Four-lane; 50% Two-lane; and 38% Single-lane
§Ports
Inadequate berths, rail / road connectivity and draft are constraints§Airports
Indequate capacity: Runways, aircraft handling capacity, parking space & terminal buildings
§Railways
Old technology; saturated routes: slow average speeds (freight: 22 kmph; passengers: 50 kmph); low payload to Tare ratio (2.5)
§Power
13.8% peaking deficit and 9.6% energy shortage; 40% T&D losses; absence of competition; and inadequate private investmentProspects
Investment requirements of infrastructure sector hugeIndia growth story to continuedomestic demandNeed to bridge infrastructure gaps to sustain economic growthOpportunities for international investors significantIndia can leverage on its vast human capital to successfully adopt the PPP model( Public Private Partnerships)