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Infrastructure
Policy Framework in India: Present Status and Suggestive
Models
-- P Nair
This
paper argues that the process of decentralization should
go much further if the nation is to get more teeth into
its policy making. The paper talks about the issues involved
in policy development like training and policy development,
legislation, attitude of govenment officers, short and long-term
FDI and end user chargeability. It discusses the existing
models in India and offers suggestive models for better
policy making and implementation. The examples from UK and
New Zealand have also been elaborated and the paper concludes
by saying that merely copying the models will not work.
The need is to implement the existing policies and development
of such policies so that maximum benefit can be given to
the end users. In sum, the policy must support a macroeconomic
climate conducive to effective resource allocation.
©
2004 IUP. All Rights Reserved.
Overview
of Bidding Process for BOT Infrastructure Projects in India
--
Ravi Unni
Governments
in the past have been involved in creation of infrastructure
facilities. This trend has been reversed recently with infrastructure
projects being implemented with private sector participation.
India has adopted this route in the post-liberalization
era. Most of the private sector investment has happened
in green-field projects under BOT format. The international
best practice is in the form of a series of events starting
from issue of Notice Inviting Tender (NIT) to ending with
the final signing of project agreements. There are no clear-cut
guidelines and strategies in view of the complexity of the
process, project and participants. Governments in India
have been winding their way through this process and some
of them have been successful in awarding the project to
private participants, while others have languished midway.
This paper is a brief exposition on the various practices
adopted by the governments in India in their endeavor to
attract private sector investment into infrastructure projects.
©
2004 IUP. All Rights Reserved.
Water
Tariffs and Subsidies in South Asia: Do
Current Water Subsidies Reach the Poor?
--
Vivien Foster, Subhrendu Pattnayak and Linda Stalker Prokopy
Reform
of the water and sanitation sector is occurring in many
countries, and offers the potential to improve services
to all. Of particular concern, however, is the situation
of the poor, and reform must be designed so that they receive
increased access to affordable services. A key issue in
this regard is water pricing, which is one of the main variables
affecting the distribution of benefits between different
stakeholders. However, experience shows that water pricing,
and the subsidies which are often delivered through water
tariffs, can be a source of major inefficiencies in the
sector. While affordability has been one of the prime concerns
of those setting tariffs and designing subsidies, there
may be significant flaws in many common pricing strategies
and subsidy delivery mechanisms. Rather than providing affordable
water to the poor, these may in fact be leading to financial
unsustainability of utilities, lack of access to services,
and inequity. The reform process provides the opportunity
to rationalize and reconsider the design of tariff and subsidy
structures, and seek new ones which may provide better results.
©
2003 The World Bank (www.worldbank.org). Reprinted with
permission.
Integrated
Water Resources Management and National Water Policy-Prospects
and Challenges
--
R S Goel
This
presentation basically aims at critical review of the obstacles
in implementation of National Water Policy; in view of the
disasters and consequences of stoppage and slowing down
of the construction of almost all major dams; by a few environmental
activists and novelists, without scientific analysis; perhaps
at the behest of developed countries. We must not forget
the basic fact that the medium and small water projects
as well as water harvesting schemes cannot substitute the
need of large water storages in highly populous countries
like India, but can at best complement the larger projects.
It is essential that novelists and self-styled activists
are restrained from adopting irrational approaches and overstatements
of adverse environmental impacts of river valley projects,
and thus the community must be made water conscious. This
presentation also highlights the fast emerging crises in
water related areas, while suggesting strategies to ensure
integrated water resources development and management. For
the same, scientific analysis and critical review of the
environmental impacts of water storage projects are also
presented. Unless these obstacles in the creation of water
storage projects are removed, the country is bound to face
serious crises on account of water scarcity, floods and
droughts, alarming water pollution and the dangers of environmental
degradation thereof.
©
2004 IUP. All Rights Reserved.
Infrastructure
Issues for BPO Industry in India
--Vishal
Thakur and Harsh Bhargava
The
services sector is contributing to almost half of India's
GDP. Therefore, the BPO industry, as part of this services
sector, cannot be ignored. BPO industry in India has grown
at a phenomenal pace despite the poor infrastructure. This
article talks about the status of telecom connectivity in
India and tells how choosing the right technology is very
important to make a BPO company cost effective. Such technologies
are Multi-service WAN switches, Switching technologies,
Automatic Call Distribution, Interactive Voice Response
and upcoming innovative technologies. The main advantage
to this sector in India is well-connected undersea cables
and satellites but the telecom cost is still high in India
than US. Other infrastructure issues besides technologies
are road network and power facilities, which need to be
upgraded. India needs to plan for a balanced growth of BPO
and requires using world-class state-of-the-art infrastructure
facilities to make the system more efficient.
©
2004 IUP. All Rights Reserved.
Foreign
Direct Investment in the Indian Power Sector
--Lata
Chakravarthy
Despite
the liberal incentives for foreign investment in power generation,
like 100% FDI under automatic approval scheme, 16% assured,
post-tax return on equity in current dollars, five-year
tax holiday, fuel price as pass through in the tariff, minimum
off-take guarantee, payment guarantees by central/state
governments, additional payment security by way of escrow
account and so on, foreign investments in this sector have
been a mere trickle. It is interesting to note that it was
the generation sector which was opened first to FDI when
the rate of growth of generating capacity was impressive
without much private sector participation. The problems
faced by the sector lie elsewhere and cannot be set right
by FDI. This article focuses on the motivations for inviting
FDI in power sector, the outcome of incentivization and
reforms, an analysis of the current state of affairs and
in conclusion, whether we need FDI in power sector.
©
2004 IUP. All Rights Reserved.
Investment
in Infrastructure: Key to Economic Change
-- Srinivasulu
Bayineni
The
sweeping economic reforms undertaken since 1991 have unleashed
and stimulated domestic and foreign investments, taking
India firmly into the forefront of investment destinations.
The government, keen to promote investment in the country
has radically simplified and rationalized policies, procedures
and regulatory aspects, and thus foreign investment is welcomed
in infrastructure sector. Infrastructure is a critical input
for industrial and overall economic development, and plays
a major role in promoting economic growth through enhancing
productivity, improving competitiveness and reducing poverty.
The expansion and efficient use of infrastructure is one
of the key issues for development in India. Infrastructure
development offers the foundation on which a country can
seize and capitalize on the opportunities ushered in by
globalization and regional integration. It also plays an
important role in `empowering the poor,' enabling them to
participate in the growth process. Large infrastructure
investments may not have immediate effects on poverty reduction,
but they are critical to enable a country to achieve long-term
growth and are the key to economic change. This paper reviews
the regulatory reforms in the infrastructure sectors in
India and focuses on only two sectors, i.e., telecommunications
and power sectors, and discusses issues and concerns in
this regard.
©
2004 IUP. All Rights Reserved.
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