Page 213 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Fundamentals of Project Management

Notes investments, and how to broadly finance the projects. The capital investment plan provides
broad investment requirements based on conceptual scopes. During project development, the
costs are detailed and reflect actual implementation requirements. For the most part, the FIRE
(D) Program structured infrastructure projects within a municipal finance framework with
recourse to the city’s general revenue sources, in specified situations. In this framework, cost
recovery for the infrastructure service is linked not only to a specific project’s revenue streams
(e.g., water user charges), but also to the overall municipal finances. Therefore, revision in
property taxes, connection charges, and other non-related fees can still enhance project viability.
The municipal finance framework is justifiable on the grounds of high economic rates of return
of environmental infrastructure, due to considerable public health gains affecting the whole
city. In contrast, financial rates of return based solely on project revenues tend to be unviable
due to historically low tariff levels. A municipal finance approach needs to be combined with
gradual tariff reforms to improve financial sustainability, with the recognition that user charges
should at least pay for O&M costs.

13.8 Summary

Companies incorporated in India and branches of foreign corporations are regulated by
the Companies Act, 1956 (the Act).
The Act, which has been enacted to oversee the functioning of companies in India, draws
heavily from the United kingdom’s Companies Act and although similar, is more
comprehensive.

The Registrar of Companies (ROC) and the Company Law Board (CLB) both working
under the Department of Company Affairs ensure compliance with the Act.
Key issue regarding e-governance and m-governance is absence of any legal framework
for mandatory electronic delivery of services in India (MEDSI).
Indian government is planning to adopt and use mobile governance (m-governance) for
governmental purposes.

Unbundling solid waste management services for assigning individual components to
private companies and public agencies in Asansol and Durgapur, West Bengal.

Politics can play both negative and positive roles in the process, and systems need to be in
place so that political pressure helps improve service delivery.
If local infrastructure projects are to access commercial investment from financial
institutions, capital markets, and private firms, it is important that services be delivered
on a sustainable basis.

The need for determining the true cost of service provision after factoring in O&M costs,
asset depreciation, environmental degradation, and social objectives.
Ironically, tariff subsidies are justified in the name of poor, although the poor are not
usually connected to the city networks as legal users (despite often having the ability and
willingness to pay).

13.9 Keywords

CLB: The Company Law Board

E-waste: E-waste is a popular, informal name for electronic products nearing the end of their
“useful life.”

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