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Transportation Sector in India

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The presentation made for Transportation Sector India as part of Business Environment course.

Following is the introduction video we used to start off the presentation.



Jist of Presentation Script

1. History:
  • British India Era: infrastructure focused on colonial requirements.
  • Independent India: India’s infrastructure vision was top down and govt got carried away with trying to prove to the world what India was capable of. The urgency to turn a desperately poor country into a gleaming industrial power had promted the state to emphasize higher education over primary power plants, steel factories and massive dams over rural roads, and building new cities over reforming older urban pestholes.
  • For most governments, investment were anyway a lose-lose option. With govt so unstable, it was likely that the next government would take credit for what you did.

2. Comprehending Transport
  • Sometimes difficult to fully comprehend the significance of transport to the economy
  • When there are problems in the power or water sectors its immediately visible
  • Lights go off or taps run dry –the public immediately knows –medical analogy is a heart attack
  • Transport sector grinds to a halt slowly –like lung disease –slowly crippling the body
  • Public comes to accept poor transport as a way of life –the economy runs slow, quality of life bad, people die in accidents –media must enlighten, focus attention

3. Road
  • Network of 66,590 km of National Highways, of which 200 km are classified as expressways.
  • Umbrella project: 7-phase NHDP

4. Railways
  • 18 million passenger daily.
  • Tariff policies: overcharge freight to subsidize passenger travel

5. Intra City
  • New initiatives, low floor A/C buses, Bus rapid transit(BRT).
  • Delhi Metro. under construction in Bangalore, Chennai, Mumbai

6. Water and Sea
  • 12 major ports and about 180 minor and intermediate ports in India.
  • Underutilized water way: 0.1% of the total inland traffic in India, compared to the 21% figure for the United States.

7. Aviation
  • System untapped. 90 million passenger annually. Railways do that in 5 days!
  • Upgradation of existing airports. Greenfield airports.

8. Investment
  • Investment requirements $492 billion in the next five years
  • Of this, $147 billion to come from private investment
  • Share of private investment in total to rise from 17% to 30% by 2012. Investment to touch $1.48 trillion by 2017
  • Role of IIFCL: It's a SPV to provide long term finance to infrastructure projects
  • Overriding priority to PPP projects, Finance projects in sectors like roads, airports, ports, power, urban infrastructure etc

9. Challenges.
  • India’s roads are congested and of poor quality.
  • Rural areas have poor access.
  • The railways are facing severe capacity constraints.
  • Urban centres are severely congested.
  • Ports are congested and inefficient.
  • Airport infrastructure is strained.


10. Way forward
  • Expanding Construction Capacity
  • Improving Contract Management
  • Report cards on delivery of services by PWDs
  • New programs/projects public consultations
  • Performance statistics, e.g. road accidents by public transport buses (DTC example)
  • Regular columns responding to citizens queries about transport

11. References
  • Imagining India - Nandan Nilekani
  • Planning Commision Website.
  • World Bank Report
  • Asia Development Bank Report.

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