The unprecedented turmoil in the global financial market and its possible impact on the infrastructure sector draws attention of the policy makers and analysts. With the collapse of US banking institutions, the sources of funding to the infrastructure sector are severely strained all over the globe. In addition to the steps taken by the market regulators to ease liquidity, the economy requires an urgent policy response which will revive confidence resulting in the continuance of investment plans. The economists opine that it is high time for the government to go in for huge spending on infrastructure projects to fight the present downturns and mayhem. To bridge the massive infrastructure gap and for a sustained growth, the deficiencies in various sectors need to be addressed. We need more investments in roads infrastructure to improve rural connectivity and create better highways for the traffic to move at an accelerated rate. The National Highways, which constitute only 2% of the national road network, need to be extended. Again, 38% of our highways are single-laned. The railways also need to be expanded and modernized as the existing network is insufficient to handle the traffic with the expected efficiency. This will increase the average freight moving speed, which is currently 22 km per hour. The port sector also requires fresh funds for capacity addition to meet the growing demand of sea-mode of transport. Power sector, which is most vital for the economic development, is also in an unpleasant situation to supply uninterrupted and adequate power for all. The peak-hour deficit is as high as 13.8% and the transmission and distribution losses are at an unacceptable 40%, which signifies the state of the power sector.

Against this backdrop, the current issue deals with the topics ranging from financing infrastructure using asset-backed securities, financing of urban infrastructure, mass urban transportation, imported nuclear power technology, telecom infrastructure, and special economic zones of India.

Infrastructure financing is a crucial subject for discussion. Various models have been evolved but none is self-sufficient. Keeping this in view, Bwembya Chikolwa, in the paper, "Financing Infrastructure Using Asset-Backed Securities: Lessons for Developing Countries", investigates the model of asset-backed securities for financing infrastructure from the experience of Australia and suggests its implementation in the developing countries.

The urban population explosion is expected to be a whopping 40% of the total population by 2030 from 29% at present. The major reason for such growth is the great rural-urban divide in terms of available earning opportunities and civic facilities, besides large growth in IT-ITES investment in the major urban locations of India. This is mainly drawing large number of people from across the country to these locations. The paper, "Urban Infrastructure Development and Local Self-Government: A Study of Bhubaneswar Municipal Corporation", by Abhijit Dutta, observes that the role of local self-government cannot be overlooked in providing better infrastructure for the urban population.

Urban Mass Transportation Systems play an important role in the economic development of cities. In the absence of well-developed state-owned mass urban transport systems, cities depend on private transport. The overindulgence of private transport not only results in severe congestion and traffic jam, but also leads to severe environmental degradation due to excessive emissions and noise from the traffic. Against this background, the paper, "Mass Urban Transportation in India: Features of Three Models and Learning", by Ramakrishna Nallathiga, explores the efficacy of urban transport system in the three metropolitan cities; Mumbai, Delhi and Ahmedabad.

The economic growth of India is feeding a voracious appetite for electricity. Analysts expect that the demand for electricity will rise at about 10% a year. (For comparison, the US power demand notches up at just 2% annually). A country should choose an optimal mix between thermal, hydro, nuclear, renewable and non-conventional energy sources. India is poised for a comprehensive nuclear power program with an emphasis on a new series of nuclear power plants, including some of higher capacities. Sumantra Bhattacharya, in his paper, "Power Paradox of India and Imported Nuclear Power Technology", enumerates the merits and demerits of various sources of power along with their cost effectiveness. Further, he says that the future potential demand for electricity in India can be met through an energy mix of 5-10% contribution from nuclear sector.

The authors Tayebeh Farahani and D H Manjappa in their paper, "Telecom Market Structure, Regulation and Pricing in India: An Empirical 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 study further reveals 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 offering a variety of service plans like prepaid calling card schemes as a means to attract new customers.

Special Economic Zones are one of the most promising opportunities for generation of Employment, Economic Growth and Infrastructure Development for the country according to a research study conducted by Export Promotion Council for EOUs and SEZ Units (EPCES), The study reiterates that the international investors look towards India and China which constitute almost 40% of the world population as the most opportune places for investments because of the inherent market potential as well as availability of youth that can be skilfully utilized for economic growth. The paper, "Special Economic Zones of India: Controversial Paradigms of Economic Growth and Infrastructure Development", by Manoj Pillai, makes a detailed analysis of SEZs in India including their operational performance over the years.

- Pradeepta Kumar Samanta
Consulting Editor