Financing Infrastructure Using Asset-Backed Securities: Lessons for Developing Countries

-- Bwembya Chikolwa

The purpose of the paper is to investigate how Asset-Backed Securitization (ABS) can be used to fund infrastructure development in developing countries. This paper also presents a case study on how ABS has been used to fund infrastructure in Australia and points out the lessons that developing countries can learn from the Australian experience. Huge amounts of funds are being poured into infrastructural investment. However, much of this activity is occurring in developed countries with little activity in developing countries. Developing countries can participate in this windfall, if clear policies, well-functioning institutions, and well led out regulations are put in place. Structured debt or ABS is seen as an innovative way of funding infrastructure.

© 2008 IUP . All Rights Reserved.

Urban Infrastructure Development and Local Self-Government: A Study of Bhubaneswar Municipal Corporation

-- Abhijit Dutta

The Urban Local Self-government is supposed to provide basic infrastructure to its citizens. To fulfill their requirements, the local self-governments need to provide for infrastructure. In view of the current developments due to the availability of the service of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to Bhubaneswar city, a city survey was conducted in Bhubaneswar to find the preparedness and adaptability of the Bhubaneswar Municipal Corporation in providing urban infrastructure facility to its citizens. The survey shows that though the changes are perceived to be good, the citizens still feel that in some areas of crucial interest, like maintaining inner city heritage and providing adequate health and sanitation, the corporation has failed.

© 2008 IUP . All Rights Reserved.

Mass Urban Transportation in India: Features of Three Models and Learning

-- Ramakrishna Nallathiga

Urbanization and urban population growth have now firmly gripped India, and together with them metropolitanization of cities has also been happening. It is expected that the metro class cities (cities with more than 1 million population) shall have the mass urban transport systems in order to sustain their growth and function efficiently on that scale. All the three modes of transport—rail, road and water—can play an important role in the development of suitable transport system in Indian cities. This paper evaluates the attempts to provide mass urban transport systems in the three major metropolitan cities in India—Mumbai, Delhi and Ahmedabad. It brings out the features for each of them, which refer to different systems of transport. The learning and way forward for the remaining metro cities have also been spelt out.

© 2008 IUP . All Rights Reserved.

Power Paradox of India and Imported Nuclear Power Technology

-- Sumantra Bhattacharya

Where, how and at what sociopolitical, economic and geopolitical cost, do we generate a deficit-and-crisis-free quality power? This is the issue, which needs to be addressed while debating over the eventual import of civilian nuclear power. We have neglected the power sector for too long. Had we given coal its due importance even two decades back, India today would have been in a far better position of bargaining in respect of civilian nuclear power import. In view of the problems associated with carbon emission, fly ash disposal, massive requirement of water we, however, cannot solely rely on what we have most, coal. We hardly have natural gas for power generation. Hydroelectricity on an excessive scale in Himalayas can irreversibly damage the environment with serious socio-economic and consequently, political implications. Therefore, India also needs an energy mix and 5-10% contribution from nuclear sector, which could possibly be the right choice. Even at that level, because of the limitations imposed by nuclear waste disposal, we would possibly be forced to restrict our generation through imported technology to not more than 40,000 MW. That might somehow `manage' the situation for the next couple of decades. What after that?

© 2008 IUP . All Rights Reserved.

Telecom Market Structure, Regulation and Pricing in India: An Empirical Study

-- Tayebeh Farahani and D H Manjappa

This study attempts to develop an econometric model to determine cellular telephone pricing on the basis of market structure and regulation for the Indian domestic market. The authors found out a positive relationship between concentration and pricing, whereas more competition of cellular service is associated with lower prices which in turn, stimulated market demand. Thus exerting a downward pressure on costs because of the economies of scale. In other words, market concentration and competition are determinants of prices and assist in evaluating of potential gains to reduce price rates towards the marginal cost of services. It is found out that concentration combined with an independent regulator is negatively correlated with telecom price performance, i.e., competition couples with independent regulation leads to more prices. The empirical analysis indicates that market structure is far from competition, and pricing competition strategies are less effective even though price is falling. The operators have resorted to non-pricing competition strategies, such as offer of a variety of service plans like prepaid calling card schemes as a means to attract new customers.

© 2008 IUP . All Rights Reserved.

Special Economic Zones of India: Controversial Paradigms of Economic Growth and Infrastructure Development

-- Manoj Pillai

The existence of a well-maintained and efficient basic infrastructure is extremely important for the growth of an economy. Power, telecommunications, transportation and water are the precious support components for rapid economic growth. The Special Economic Zones (SEZs) are ambitious plans of the Government of India to set up specific regions with liberalized economic regulations and a world class infrastructural facility with the aim of export promotion and increasing the Foreign Direct Investment (FDI) in India. These zones are free trade enclaves, which have liberal economic and labor laws with the aim of attracting FDIs, promotion of exports and creation of a level playing ground for domestic business institutions to compete in the global market. Critics, on the other hand, are of the opinion that the present legislation on SEZs results in the displacement of people, financial drain and the liberal land acquisition policies that will result in `land-scams'. This paper delves into all the aspects of SEZs in India.

© 2008 IUP . All Rights Reserved.