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September' 07
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Infrastructure Building Through TEQIP in Maharashtra's Technical Institutions in the Event of Globalization
Financing Rural Godowns: An Important Infrastructure for Agriculture
Rejuvenated Canal System in Infrastructure Development: A Case Study of Rajarhat in Kolkata Metropolitan Area
National Telecom Policy (NTP) 1994 and Structural Change in Telecommunication Sector of Gujarat
Tracking the Trucking Sector: Eleventh Plan
Urban Transport in India: Status, Investment Need and Financing Options
Special Economic Zones: Issues, Opportunities and Ground Realities
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Infrastructure Building Through TEQIP in Maharashtra's Technical Institutions in the Event of Globalization

-- N B Pasalkar and V M Mohitkar

Quality educational infrastructure at the technical institutions is an essential parameter for producing competent technocrats. This enables the building up of technological capabilities of the nation, which drive the socioeconomic development at the state and national level. The government funding was mainly responsible for providing infrastructure at educational institutions. However, economic reforms initiated in the early 1990s opened up avenues for private players to play a key role in the establishment of educational institutions on self-financing basis. Since 2004, the World Bank-assisted Technical Education Quality Improvement Program (TEQIP) has been playing a major role in developing educational infrastructure in select engineering institutions in Maharashtra state. This is proving to be a timely input in regard to General Agreement on Trade in Services (GATS) regime.

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Financing Rural Godowns: An Important Infrastructure for Agriculture

-- Deepak Kumar

The paper highlights the need for establishing rural godowns to offset the current food crisis scenario. It also focuses on the issues and perspectives related to the scheme, which encourages the establishment of godowns. However, it cautions the borrowers that they should not be just after the subsidy. Borrowers must realize that subsidy is only a motivating factor to promote infrastructure such as rural godowns and they must not change their entrepreneurial mindset. The paper also discusses the eligibility criteria for getting subsidy, such as the way the dimensions of rural godowns are being followed within the stipulated guidelines of National Bank for Agriculture and Rural Development (NABARD).

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Rejuvenated Canal System in Infrastructure Development: A Case Study of Rajarhat in Kolkata Metropolitan Area

-- Sumita Gupta Gangopadhyay and Janmejoy Gupta

Sustainable and innovative infrastructure planning is the need of the hour. The plan to meet the water supply requirement for the upcoming New Town, Rajarhat, located in the eastern fringes of Kolkata is an instance of innovative, sustainable, and economical urban planning. The transfer of water through pipeline connections in right quantity and quality from the River Hooghly to the New Town treatment plant through the existing Kestopur Canal has been preferred. The economic and environmental implications of this preferred mode of transfer has been discussed in this paper.

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National Telecom Policy (NTP) 1994 and Structural Change in Telecommunication Sector of Gujarat

-- Smruti Bulsari

Adoption of liberalization policy by India in 1991 opened up doors for many private and foreign entrepreneurs in various sectors of business, including telecommunication services. With the opening up of global trade, telecommunication infrastructure started gaining importance as an essential means of communication across the borders. In the telecommunication sector too, the entry of private operators was encouraged. A National Telecom Policy (NTP) was announced for the first time in 1994 with an objective to regulate the entry of private service providers. Subsequently, many loopholes were identified in the NTP 1994 and a new policy was announced in 1999 after making substantial revisions in the NTP 1994. Despite this, the NTP 1994 can be considered to be a milestone in the history of telecommunication regulation. This paper examines the shift in growth rate, if any, in the telecommunication sector of Gujarat after adoption of the NTP 1994. This has been done by undertaking Chow Breakpoint Test and Dummy Variable Analysis on yearly time series of number of telephone connections in Gujarat state from 1975 to 2004. The results of Chow Breakpoint Test as well as that of dummy variable analysis show that the NTP 1994 was a turning point in the telecommunication sector.

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Tracking the Trucking Sector: Eleventh Plan

-- P R Kulkarni

Trucking industry is now in a better position to face competition. The road transport sector, roughly estimated at US$12 bn, dominated the logistic industry. The improved road infrastructure is already showing visible effect on the freight transported. This resulted in rapid growth in trucking segment. However, there is no reliable information available on the volume of freight carried by the road transport. Similarly, information on the number of trucks in operation, capacity build-in, and its utilizations are also not available. It is, therefore, very difficult to determine the demand for Commercial Vehicles (CVs). This paper has developed a methodology for projecting the demand for trucks. The demand projection is based on forecasting billion tons freight movement by correlating it with IIP and agriculture growth. The replacement demand for CVs is also estimated which is based on a survey of the transporters. This study also provides year-wise requirement of CVs during the Eleventh Plan period.

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Urban Transport in India: Status, Investment Need and Financing Options

-- Ramakrishna Nallathiga

Rapid urban population growth and accelerated economic development are exerting pressure on the provision of public services in urban areas, particularly in the delivery of infrastructure services, such as urban transport. However, many cities have not come up with plans and investments in urban transport, which is resulting in chaotic traffic and transport conditions in several cities. This paper highlights this deficiency by analyzing the scenario, estimating the basic investment needs in urban transport, and discussing the methods of resource mobilization. It also discusses the alternative methods of laying down urban transport infrastructure through funding channels and partnership mechanisms, given the services fall beyond the purview of municipal functions.

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Special Economic Zones: Issues, Opportunities and Ground Realities

-- Mamta Baranwal

The government is of the view that the development of Special Economic Zones (SEZs) will lead to the development of business and economy. In the process of establishing a SEZ, land acquisition plays an important role, which is also a sensitive issue among different players, such as NGOs, local people, politicians, developers, and the industrialists. Any delay in SEZ development leads to cost overrun of projects that is painful to the developers who have to pay a huge amount towards interest on their investment to banking institutions. This paper discusses how industries are `migrating' from their existing sites to SEZs for getting tax exemptions. A good example is that of Videocon which has hired 50 farmers in 100-acre SEZ project at Aurangabad. However, Article 243G of the Constitution provides the necessary guidelines that the local government and the Planning Commission may examine each proposal and decide whether to continue or discontinue with the sharing of local resources. The paper also briefly discusses the salient features of Rehabilitation and Resettlement (R&R) Policy and concludes that India has to learn from the Chinese strategy—to implement not more than 50 SEZs initially, learn fully and carefully from one's own experiment, and then move forward slowly to achieve a bigger target.

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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