Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
133 views10 pages

Infrastructure and Development

This document discusses infrastructure, its importance for development, and issues related to infrastructure projects and development. It defines infrastructure as including public works like roads, dams, and canals, as well as public utilities for power, telecommunications, water, sanitation, and transportation. Infrastructure is described as social overhead capital that creates investment opportunities and economic growth. However, infrastructure projects face challenges due to their large upfront costs and long timescales. Issues discussed include the need for private sector involvement, competition, and user input in infrastructure development and management.

Uploaded by

Shompa Dhali Nandi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
133 views10 pages

Infrastructure and Development

This document discusses infrastructure, its importance for development, and issues related to infrastructure projects and development. It defines infrastructure as including public works like roads, dams, and canals, as well as public utilities for power, telecommunications, water, sanitation, and transportation. Infrastructure is described as social overhead capital that creates investment opportunities and economic growth. However, infrastructure projects face challenges due to their large upfront costs and long timescales. Issues discussed include the need for private sector involvement, competition, and user input in infrastructure development and management.

Uploaded by

Shompa Dhali Nandi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 10

Infrastructure and

Development
What is Infrastructure ?
• Infrastructure Covers a number of Social and
Public Utilities which are known as “Social
Overhead Capital”
• Public Works –Roads ,Major Dam and canal
works for Irrigation and Drainage
• Public Utilities -Power, Telecommunications
Water Supply, Sanitation and Sewerage ,Solid
waste Collection &Disposal and Piped Natural
Gas
• Other Transport- Urban and inter urban railways
Urban transport , Ports and waterways and
airports
Social overhead capital or
investment in infrastructure
• Investment in infrastructure is significant
because of its products /results are investment
opportunities created in other industries/sectors .
• They require a “great minimum size”
• Excess (idle) capacity is unavoidable in the
initial period
• This Investment is “ irreversible in time “
• It must directly precede investment in production
and other directly productive investment.
• Its services cannot be imported.
Infrastructure projects
• A minimum durability of service
• A long gestation period
• A minimal industry mix of different kinds of
industries/related services/public utilities.
• Because its huge requirement of funds for
initial capital investment and private
sector would neither be able to mobilize
huge funds / manage it independently.
Problems of infrastructure projects
• The concept of infrastructure projects was highlighted
by originally by Paul Rosenstein-Rodan & Ragnar
Nurkse
• These investment decisions are inter related and
individual investment projects have high risk because of
uncertainty as to whether their product will find a market.
• It needs a “big push “ to be sustainable ,but nevertheless
stimulates overall economic progress
• Infrastructure facilities like Special economic zones
(examples : SEEPZ for electronics & IT , Kandla EPZfor
heavy machinery &Ship breaking , Surat EPZ for gems &
jewellery) Bandra –Worli Sea link bridge
Why it is important ?
what are its contributions ?
• Infrastructure means physical framework
of facilities provided to the public. Its
linkages to the economy are multiple and
complex .
• It contributes to economic development
both by increasing productivity and by
providing amenities which enhance the
quality of life.
Its contributions ……
• They are intermediate services which
increases profitability of production,
permitting higher levels of production
output ,income and employment
• They raise productivity of other factors
including labour and other capital
• infrastructure programmes include
medical, educational and other primary
services
Major benefits of Infrastructure
• Economic growth
• Poverty alleviation
• Environmental sustainability
• Quality of life
• Standards of living
• Expanding trade
• Contributes income and foreign exchange
Issues in Infrastructure
development & management
• Manage Infrastructure like a business ,not
a bureaucracy .
• Give larger autonomy to raise resources
and revenue to manage public utilities
efficiently and effectively
• Introduce competition to improve the
quality of services and its efficiency
• Give voice to the users of public utilities
Issues in Infrastructure
• Public Private Partnership (PPP) in
construction ,ownership and financing and
management offers better service and
higher returns and performance
improvements
• Governments would have continuing role
in infrastructure development and
management.

You might also like