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Unit 2: Project Analysis and Selection
What would be the potential availability? Notes
What are the likely shortages/bottlenecks?
What measures may be taken to augment supplies?
Did u know? Government of India recognizes that there are significant shortcomings in
the availability of critical infrastructure in the country at central as well as state and local
level and that this is hindering rapid economic development.
2.8 Basis of Government Regulatory Framework
Government of India recognizes that there are significant shortcomings in the availability of
critical infrastructure in the country at central as well as state and local level and that this is
hindering rapid economic development. In addition, the development of infrastructure requires
very large investment that may not be possible out of the budgetary resources of Government
of India alone. In order to remove these shortcomings and to bring in private sector resource as
well as techno-managerial efficiencies, the government is committed to promoting Public Private
Partnerships (PPPs) in infrastructure development.
It is also recognized that infrastructure projects have a long gestation period and may not all be
fully financially viable on their own. On the other hand, financial viability can often be fully
financially viable on mechanism that provides government support to reduce project costs. The
Government of India therefore proposes to set up a special facility to provide such support to
PPP projects. This support is generically termed as ‘viability gap funding’ throughout this
document. This facility will be housed in the Department of Economic Affairs (DEA). Suitable
budgetary provisions will be made on a year basis.
Self Assessment
Fill in the blanks:
11. The ....................... chosen must be judged in terms of the total product mix generated by it,
including saleable by products.
12. ....................... sources of data on livestock and forest products often do not provide a
dependable basis for estimation.
13. ....................... viability can often be fully financially viable on mechanism that provides
government support to reduce project costs.
Case Study UIDAIs Aadhaar Project: Challenges Ahead
adhaar previously called as the Unique Identification (UID) project was the 12
digit identification number provided by the Unique Identification Authority of
AIndia (UIDAI) on behalf of the GoI. The number served as proof of address and
identity for citizens anywhere in India. In June 2009, Nandan Nilekani (Nilekani), former
CEO of Infosys Technologies Limited was invited by Singh to head the Aadhaar project and
was roped in with the rank of a Union Cabinet Minister as the Chairperson of the UIDAI. In
September 2010, the Aadhaar project was launched by Singh and UPA Chairperson, Sonia
Contd...
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