Page 24 - DECO303_INDIAN_ECONOMY_ENGLISH

Unit 2: Structure of Indian Economy

2.3.1 Key Factors of Indian Infrastructure Notes

You must take a note of the following key constituents of Indian Infrastructure:

Roads

Roads are a dominant mode of transportation in the country today. They carry about 65 per cent
of India’s freight and about 90 per cent of its passenger traffic. India’s National Highway (NH)
network stretches to 80,000 km. It has a density of 0.66 km of highway per square kilometre of
land. It is enclosed by over 200 toll plazas, about half of which are operated by the National
Highway Authority of India (NHAI) while the other half is handled by several highway
developers.

Railways

Indian Railways is one of the busiest and largest rail networks in the world. The Indian Railways,
which is a significant mode of transport for bulk freight traffic and passenger traffic, is spread
over 64,015 route kilometres.

According to statistics released by the Department of Industrial Policy and Promotion (DIPP),
the cumulative Foreign Direct Investment (FDI) inflow into the railways related components
sector from April 2000 to March 2013 stood at US$ 270.33 million.

The Indian Railways produced total estimated earnings on originating basis of ` 124,814.87
crore during 1st April 2012 to 31st March 2013 compared to ` 104,334.61 crore during the same
period last year, indicating an increase of 19.63 per cent. While the total passenger revenue
earnings shot up by 11.35 per cent, the total goods earnings increased by 23.24 per cent. The
revenue earnings from other coaching during 1st April 2012 to 31st March 2013 amounted to
` 3,137.92 crore (US$ 540.88 million).

Ports

32 projects awarded by the ministry in 2012-13 will add an annual capacity of 136.75 MT
across the Indian port segment; involving an investment of ` 6,765.63 crore (US$ 1.17
billion).

Total cargo handled at major ports in the country during April–February 2013 stood at 498
MT.

Power

According to the statistics released by Corporate Catalyst India in its brief report on ‘Power and
Energy Industry in India’, of the total energy generated in India about 55 per cent is based on
coal, 26 per cent on hydro, 3 per cent on nuclear, 10 per cent on gas, 3 per cent on renewable
sources and 1 per cent on diesel.
Reliance Power owned by Anil Ambani has started commercial generation from the first 660
megawatt (MW)-unit of Sasan Ultra-Mega Power Project (UMPP) in Madhya Pradesh. Being the
largest integrated power plant and coal mining project in the world, Sasan project has an estimated
expenditure of over ` 23,000 crore (US$ 4 billion). Power generated by this facility is expected to
be sold to 4 distribution firms across seven states.
After the Tata Group’s Mundra Port, Sasan project is the second showcase power project.

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