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Showing posts from December 18, 2008

India's Infrastructure Deficit

§Highways 66,590 Km of NH (2% of network, 40% of traffic): only 12% Four-lane; 50% Two-lane; and 38% Single-lane §Ports Inadequate berths, rail / road connectivity and draft are constraints §Airports In dequate capacity: Runways, aircraft handling capacity, parking space & terminal buildings §Railways Old technology; saturated routes: slow average speeds (freight: 22 kmph; passengers: 50 kmph); low payload to Tare ratio (2.5) §Power 13.8% peaking deficit and 9.6% energy shortage; 40% T&D losses; absence of competition; and inadequate private investment Prospects Investment requirements of infrastructure sector huge India growth story to continue domestic demand Need to bridge infrastructure gaps to sustain economic growth Opportunities for international investors significant India can leverage on its vast human capital to successfully adopt the PPP model( Public Private Partnerships)