The IUP Journal of Infrastructure - Management Journals

The article discusses about rural infrastructure such as road, water, sanitation, power, telecommunication, education, health, and information and communication technology. It also talks about the initiatives taken by the government both in the past and in recent times. In sum, the picture is not so rosy and there is an urgent need to upgrade rural infrastructure in the near future.

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Rural Development through Public-Private Partnerships

-- Rosmarie Sommer,
Cyrill Rogger and Felix Hintermann

Public-Private Partnerships (PPPs) in rural development are still rather uncommon, although the increased opening of agricultural markets clearly provides potential for development. Current rural PPPs are mainly concerned with organic farming, the use of non-timber forest products, and the certification of ecologically and socially sound production. Three examples analyzed in the paper are: Oda-Kotoamso Community Agroforestry Project (OCAP); Improvement of Coffee, Quality and Sustainability of Coffee Production in Vietnam; and Watermelon Export Program in Honduras. The paper finds that companies usually invest in lucrative farm products in international markets, while the public sector supports the less profitable production of basic foods with a view to providing food security. The chances of success are more if a private initiative succeeds in triggering an increase in productivity, and governmental guidance ensures that the benefits are transmitted to a broader section of the population. Thus, PPPs in rural infrastructure is successful only if the responsibility and risks are shared between the public and private partners.

Warehousing Infrastructure: Empowering the Agriculture Sector

-- Mamta Baranwal

Developing warehousing infrastructure is the need of the hour in India. This paper talks about its need, benefits, types, storage alternatives, and criteria of good warehousing facilities. It also discusses about the agencies involved in the process and the government's initiatives in this context. However, the paper finds that developing warehousing infrastructure on a need-basis is a challenge and we have to reach high standards to face this, in the coming years.

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Tariff Policy of the Electricity Act, 2003: A Commentary

-- P Nair

In February 2005, the Central Government came out with a detailed tariff policy. This is basically an extension of the Electricity Act 2003. The importance of this policy cannot be overestimated in view of the fact that this is the first concrete step towards getting micro-policies right. There is no real point in drafting a macro-policy and leaving the players to figure out the details, especially in infrastructure. This can lead to untold problems.

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Growing India's Energy Needs: Tapping Renewable Energy Technologies

-- S Bhaskaran

Ranking sixth in the world in terms of energy demands, India accounts for 3.5% of the world commercial energy demands. The projected GDP growth is 8% and the energy demand is expected to grow at 5.2%. The projected requirement of commercial energy is estimated at 412 million tons of oil equivalent by the end of Tenth Five Year Plan, which works out to an annual growth of 6.6%. While the current share of renewable energy accounts for only 6% of the total installed capacity, the renewable energy will produce 8000MW by the end of March 2008. With depletion in conventional energy sources and high cost of nuclear and petroleum sources, the only way to meet the increasing demand is tapping renewable energy sources like solar, wind and biomass, which can provide a cheap source of energy to the rural masses.

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Airport Privatization and Financing: Experiences from Countries and Lessons for India

-- Padmalatha Suresh

With the privatization of the British Airport Authority (BAA) in 1987, the participation of the private sector in airport infrastructure has increased substantially. A better air transport sector also contributes significantly to the development of an economy. With this sector making a positive contribution to the expanded economy, the respective governments of different countries could focus on safety and security regulation, along with competitive policies, and economic and environmental regulations, as well. The commercial viability of operating the airport infrastructure for the private sector arises from (i) being able to price its services effectively, and (ii) the customers being able and willing to pay for these services. Airport infrastructure privatization is promising to be a global mega trend, with more and more governments and private players being pushed in that direction. Most mature airports remain profitable through the vagaries of the airline industry largely due to the fact that they earn a high proportion of their income from non-aeronautical revenues. Bangalore International Airport Ltd., is the first Public-Private Partnership (PPP) Greenfield project in India. It has been recently project-financed with a substantial amount of bank funding. However, international experience suggests that markets also have a greater role to play in airport financing. With airport privatization already gaining momentum, the government machinery, financing and contractual structures have to gear up to keep pace.

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Case Study

Visakha Container Terminal Project

-- P Nair and Deepak Kumar

Visakhapatnam Port has made substantial achievements in the last few years. The opening of a modern container terminal is like the icing on the cake. This terminal is a joint venture with the Dubai Port Trust, which has earned itself an international reputation in the maritime sector as a major player in the field. The project was set up in record time and is equipped with the most modern gadgetry. With the ratio of containerized cargo increasing every year, it is these kinds of modern terminals which could boost up India's east coast and offer alternatives to Colombo and Singapore. The best performing ports have traditionally been on the west coast, while on the eastern side, the performance has generally been below par. The technical details, layouts and growth figures have been laid out in this most interesting case study. Future potential has also been assessed in the light of the need to have faster turnaround times.

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