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Infrastructure

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Home/Indian Economy/Infrastructure/Page 4

Mains Answer Writing Latest Questions

Adheesh Raman
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Adheesh RamanLearner
Asked: January 7, 2025In:
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Roadmap for Answer Writing 1. Introduction Briefly introduce the current status of India’s aviation sector. Mention the projected growth, positioning India as one of the largest aviation markets globally by the end of the decade. 2. Key Drivers of Growth in India’s Aviation Sector Higher ...

upsc: infrastructure
  1. Team
    Best Answer
    Team Supreme

    Model Answer Drivers of Growth in India's Aviation Sector India is rapidly emerging as one of the largest aviation markets in the world. Several key factors are fueling the growth of the country's civil aviation sector: Higher Household Income Rising incomes are leading to increased business and leiRead more

    Model Answer

    Drivers of Growth in India’s Aviation Sector

    India is rapidly emerging as one of the largest aviation markets in the world. Several key factors are fueling the growth of the country’s civil aviation sector:

    1. Higher Household Income
      • Rising incomes are leading to increased business and leisure travel. Professionals are opting for air travel for work, and more individuals can afford to travel for leisure.
      • Fact: The aviation sector is benefiting from growing household income, contributing significantly to the rise in passenger traffic.
    2. Entry of Low-Cost Carriers
      • Low-cost airlines have revolutionized air travel by making it affordable for the common man, further driving domestic traffic growth.
      • Fact: The expansion of budget airlines has made air travel more accessible across various segments of the population.
    3. Increased Foreign Direct Investment (FDI)
      • The government has allowed up to 100% FDI in non-scheduled air transport services, seaplanes, and helicopter services, leading to infrastructure development and further growth.
      • Fact: 100% FDI is allowed through the automatic route in key aviation sectors, promoting development.
    4. Increased Tourism
      • A rise in inbound tourism has contributed to the growth of air travel. In 2021, 87.5% of foreign tourists arrived in India by air.
      • Fact: 87.5% of the 1.52 million foreign tourists in 2021 entered India via air.
    5. Development of Modern Airports
      • Airports are being upgraded with new technologies, focusing on speed, capacity, and sustainability, which boosts the aviation industry.
      • Fact: The development of modern airports is a key driver of growth, incorporating advanced technologies.

    Challenges Faced by India’s Aviation Sector

    Despite strong growth drivers, the Indian aviation sector faces several challenges:

    1. High Fuel Costs
      • Fuel costs, particularly Jet Fuel, make up 20-30% of operational costs. In 2022, the cost of Aviation Turbine Fuel (ATF) rose by over 70%, one of the steepest increases in recent years.
      • Fact: High ATF prices in India, due to taxes and levies, make fuel costs among the highest in the world.
    2. Infrastructure Bottlenecks
      • Many airports are outdated and located in hard-to-reach areas. Expanding runways is costly, time-consuming, and complicated due to land acquisition issues.
      • Fact: India faces challenges with aging airport infrastructure and limited space for expansion.
    3. Regulatory and Compliance Issues
      • Multiple government agencies overseeing the sector create delays and increase compliance costs.
      • Fact: The involvement of several regulatory bodies complicates the sector and causes delays.
    4. Shortage of Skilled Workforce
      • The aviation sector faces a lack of skilled labor due to the high cost of training and the need for updated facilities and equipment.
      • Fact: There is a shortage of qualified personnel, exacerbated by expensive and outdated training infrastructure.
    5. Security and Efficiency Challenges
      • The need for stringent security measures, while essential, can add to travel time and costs.
      • Fact: Security measures are essential but contribute to delays and increased costs in the aviation sector.
      • Source: Provided content.

    Conclusion

    India’s civil aviation sector has the potential to become the world’s largest, driven by rising incomes, increased tourism, the expansion of low-cost carriers, and modern airport development. However, challenges like high fuel costs, inadequate infrastructure, regulatory complexities, workforce shortages, and security measures need to be addressed to fully realize this potential.

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Adheesh Raman
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Adheesh RamanLearner
Asked: January 7, 2025In:
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Roadmap for Answer Writing To address the question effectively, use the following roadmap: Introduction Begin by explaining the importance of roads and highways in the context of India’s physical infrastructure. Briefly mention India’s extensive road network and its contribution to the economy (GDP share, ...

upsc: infrastructure
  1. Team
    Best Answer
    Team Supreme

    Model Answer Roads and Highways Sector: Driving Physical Infrastructure Growth in India India's roads and highways sector, with a vast network of approximately 63.72 lakh km (second largest globally), plays a critical role in infrastructure growth by contributing over 3.6% to GDP. Roads support overRead more

    Model Answer

    Roads and Highways Sector: Driving Physical Infrastructure Growth in India

    India’s roads and highways sector, with a vast network of approximately 63.72 lakh km (second largest globally), plays a critical role in infrastructure growth by contributing over 3.6% to GDP. Roads support over 85% of passenger traffic and 65% of freight transport, making them a fundamental part of India’s logistics and connectivity. The following factors explain how the sector is anticipated to drive infrastructure growth:

    1. Supporting the Logistics Sector
      Roads and highways enhance logistics efficiency by reducing transportation costs and improving cargo handling. This improves supply chain management, lowering turn-around times for goods transport and bolstering the overall logistics sector (source: provided content).
    2. Integration with Other Transport Modes
      Road infrastructure serves as a feeder system for other transportation modes (e.g., railways, airports, and seaports), enabling a seamless multi-modal logistics network and facilitating trade across the country .
    3. Promoting Urban Development
      New urban centers and satellite towns emerge around road networks, facilitating easy access for the workforce and fostering economic activity in once-remote areas .
    4. Addressing Development Deficits and Regional Integration
      Road development in under-served regions allows access to essential services such as healthcare, education, and internet connectivity, further integrating isolated areas. For instance, projects like the Zojila Tunnel on the Srinagar-Leh road open up new economic opportunities in challenging terrains .

    Key Factors Causing Delays in Road Infrastructure Projects

    Despite these advantages, delays affect 407 of 717 projects in this sector (source: Ministry of Statistics and Programme Implementation). The primary causes of delay include:

    1. Financial and Land Acquisition Issues
      Insufficient project feasibility studies, underestimation of costs, and the complex, lengthy land acquisition process hinder timely project initiation.
    2. Planning and Procurement Challenges
      Delays in site handover, project approvals, contract awards, and machinery procurement further disrupt schedules .
    3. Execution and Decision-Making Bottlenecks
      Slow decision-making, weak inter-departmental collaboration, and poor contracting practices lead to project slowdowns .
    4. Inadequate Project Monitoring
      Ineffective project monitoring, inadequate delay penalties, and insufficient technical staff exacerbate delays.

    India’s roads and highways sector is poised for growth, yet overcoming these challenges is vital for realizing timely project completion and sustaining infrastructure development.

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Adheesh Raman
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Adheesh RamanLearner
Asked: January 7, 2025In:
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Roadmap for Answer Writing When addressing the question, “In the context of port-led development in India, what is the significance of the Sagarmala programme, and what challenges does it face?”, follow this structured approach: Introduction Briefly define port-led development and its relevance to ...

upsc: infrastructure
  1. Team
    Best Answer
    Team Supreme

    Model Answer Significance of the Sagarmala Programme The Sagarmala programme is a transformative initiative by the Ministry of Ports, Shipping and Waterways, aimed at promoting port-led development in India. This programme leverages the strategic advantages of ports to stimulate economic growth andRead more

    Model Answer

    Significance of the Sagarmala Programme

    The Sagarmala programme is a transformative initiative by the Ministry of Ports, Shipping and Waterways, aimed at promoting port-led development in India. This programme leverages the strategic advantages of ports to stimulate economic growth and enhance the country’s maritime infrastructure. Key significance includes:

    1. Reduced Logistics Costs: Sagarmala seeks to lower logistics costs for both domestic and international trade by improving connectivity between ports and production centers, making Indian goods more competitive in global markets.
    2. Increased Efficiency: The programme focuses on modernizing port infrastructure and using digital technologies to streamline operations, ultimately improving cargo movement and the ease of doing business in the maritime sector.
    3. Promotion of Coastal Shipping: By shifting more cargo transport to coastal and inland waterways, which currently contribute only 6% to the transport modal mix, the programme aims to enhance sustainability and reduce road congestion.
    4. Job Creation and Economic Growth: The initiative is projected to boost merchandise exports by approximately $110 billion by 2025 and create around 10 million new jobs, significantly impacting the economy.
    5. Regional Development: Sagarmala aims to revive traditional trade routes with regions like Africa, West Asia, and Southeast Asia, strengthening India’s position in global trade.
    6. Community Development: Funds from the programme will support skill development, livelihood generation, and coastal tourism, benefiting local communities.

    Challenges Associated with the Sagarmala Programme

    Despite its potential, the Sagarmala programme faces several challenges:

    1. Resource Mobilization: Investment mobilization and timely budgetary support remain critical hurdles, as highlighted by ICRA .
    2. Complex Taxation: The shipping industry is burdened by a complex tax regime, which increases operational costs and deters investment .
    3. Poor Coordination: A report from a Parliamentary Standing Committee pointed out inefficiencies due to lack of coordination among ministries, leading to delays and increased costs .
    4. Environmental Concerns: Infrastructure development poses risks to fragile ecosystems, including coastal erosion and challenges associated with dredging .
    5. Disaster Vulnerability: Coastal regions, particularly on the eastern coast, are at risk from natural disasters like cyclones, necessitating resilient infrastructure .
    6. Security Issues: Developing numerous small ports could heighten security vulnerabilities, especially along the western coast, due to geopolitical tensions .

    Addressing these challenges through better coordination, integrated planning, and climate-resilient infrastructure is essential for the success of the Sagarmala programme.

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Guru
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GuruEnthusiast
Asked: November 13, 2024In: , , , , , ,
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indian railywayquestionreason
  1. shivamx
    shivamx Learner

    Indian Railways still uses diesel locomotives due to incomplete network electrification, especially in remote or difficult terrains. Diesel engines provide flexibility on non-electrified routes and act as backups where power supply is unreliable. Full electrification is costly and challenging in somRead more

    Indian Railways still uses diesel locomotives due to incomplete network electrification, especially in remote or difficult terrains. Diesel engines provide flexibility on non-electrified routes and act as backups where power supply is unreliable. Full electrification is costly and challenging in some areas, so a phased approach is in place. While diesel use continues, Indian Railways aims for net-zero carbon emissions by 2030 through gradual electrification and renewable energy adoption.

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Bhanu Chopra
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Bhanu ChopraBegginer
Asked: July 25, 2024In:
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Examine the government’s efforts to close the financing gap for infrastructure, including the National Infrastructure Investment Fund (NIIF) and other efforts to raise money from both domestic and international sources. Also, assess how well these programs are working to direct ...

upsc: infrastructure
  1. Bhavesh Desai
    Bhavesh Desai Begginer

    Addressing the infrastructure financing gap is crucial for India’s economic growth and development. The government has implemented various measures to mobilize both domestic and foreign capital to bridge this gap. Key initiatives include the National Infrastructure Investment Fund (NIIF) and other sRead more

    Addressing the infrastructure financing gap is crucial for India’s economic growth and development. The government has implemented various measures to mobilize both domestic and foreign capital to bridge this gap. Key initiatives include the National Infrastructure Investment Fund (NIIF) and other strategies designed to attract long-term investment. Here’s an analysis of these efforts and their effectiveness:

    Government Efforts to Address the Infrastructure Financing Gap

    1. National Infrastructure Investment Fund (NIIF)

    Overview:

    • Establishment: NIIF was established in 2015 as a fund to attract long-term investments in infrastructure projects.
    • Objective: The primary goal is to provide a platform for investing in infrastructure projects across sectors such as transport, energy, and urban development.

    Key Components:

    • Funds Structure: NIIF is structured as a quasi-sovereign wealth fund, with contributions from the Government of India, as well as domestic and international investors. It operates through three funds:
      • NIIF Master Fund: Focuses on large-scale projects across various sectors.
      • NIIF Fund of Funds: Invests in other infrastructure funds.
      • NIIF Strategic Opportunities Fund: Targets specific infrastructure projects with strategic importance.

    Effectiveness:

    • Attracting Investment: NIIF has successfully attracted investments from various international investors, including sovereign wealth funds and global pension funds. This demonstrates its ability to mobilize significant capital for infrastructure.
    • Project Financing: The fund has played a role in financing major infrastructure projects, helping to bridge the financing gap and support the development of critical infrastructure.
    • Catalyzing Private Investment: By providing a platform for both domestic and foreign investors, NIIF has helped catalyze additional private sector investment in infrastructure.

    2. Measures to Mobilize Domestic and Foreign Capital

    Domestic Capital Mobilization:

    • Infrastructure Debt Funds (IDFs): IDFs are created to provide long-term financing for infrastructure projects. They help channel institutional capital from banks, insurance companies, and pension funds.
    • Tax Incentives: The government offers tax incentives for investments in infrastructure projects, such as exemptions for infrastructure bonds and investment in infrastructure-related equities.

    Foreign Capital Mobilization:

    • Foreign Direct Investment (FDI): The government has liberalized FDI policies in sectors like transport, energy, and construction to attract foreign investment.
    • Public Private Partnerships (PPPs): PPPs are encouraged to leverage both domestic and foreign investment in infrastructure projects.
    • Infrastructure Investment Trusts (InvITs): InvITs allow for the pooling of investments from various investors to finance and manage infrastructure assets, providing a structure for attracting both domestic and foreign capital.

    Effectiveness of Initiatives

    1. National Infrastructure Investment Fund (NIIF)

    Positive Outcomes:

    • Increased Investment: NIIF has attracted substantial investments from international sources, including notable investments from the Abu Dhabi Investment Authority (ADIA) and other global investors.
    • Project Implementation: The fund has supported the development of key infrastructure projects, contributing to the overall infrastructure development goals.
    • Enhanced Confidence: NIIF’s success has enhanced investor confidence in India’s infrastructure sector, potentially leading to more investment in the future.

    Challenges:

    • Project Delays: Some projects financed by NIIF have experienced delays due to regulatory issues, land acquisition problems, and other logistical challenges.
    • Risk Management: Balancing risk between public and private stakeholders remains a challenge, particularly in ensuring that investments are protected and managed effectively.

    2. Measures to Mobilize Capital

    Positive Outcomes:

    • Increased Capital Flow: The various measures have succeeded in increasing the flow of capital into infrastructure projects, helping to address the financing gap.
    • Diverse Investment Sources: By leveraging multiple sources of domestic and foreign capital, India has diversified its infrastructure financing base and reduced reliance on traditional sources.

    Challenges:

    • Regulatory and Policy Hurdles: Complex regulatory environments and policy uncertainties can deter investment and delay project execution.
    • Coordination and Execution: Effective coordination between various stakeholders, including government agencies, private investors, and financial institutions, is crucial for successful project implementation.

    Conclusion

    The government’s efforts to address the infrastructure financing gap through initiatives like the National Infrastructure Investment Fund (NIIF) and various measures to mobilize domestic and foreign capital have made significant progress. NIIF, in particular, has played a crucial role in attracting long-term investment and supporting major infrastructure projects. However, challenges such as regulatory hurdles, project delays, and risk management remain.

    To enhance the effectiveness of these initiatives, continued focus on improving regulatory frameworks, ensuring efficient project execution, and fostering collaboration between public and private sectors is essential. By addressing these challenges, India can further bridge the infrastructure financing gap and support sustained economic growth and development.

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Anushka Saha
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Anushka SahaBegginer
Asked: July 19, 2024In: , ,
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Explain about the extension in the development of Bharat Mala Pariyojana and the corridors being constructed under it

questions
  1. Anita Dhruw
    Anita Dhruw Legend

    Bharat Mala Pariyojana: A mere extension for improved connectivity This extension would come out among the existing Bharat Mala Pariyojana infrastructure projects and therefore would again be such a massive project for improving the Indian road network that would cross all sorts of challenges whichRead more

    Bharat Mala Pariyojana: A mere extension for improved connectivity

    This extension would come out among the existing Bharat Mala Pariyojana infrastructure projects and therefore would again be such a massive project for improving the Indian road network that would cross all sorts of challenges which infrastructure development at such scales poses.

    Important Corridors Covered Under Bharat Mala Pariyojana:

    The main corridors which form this project are as follows:

    Economic Corridors: These link big economic cities and industrial centers over the nation to trade and commerce.
    Inter-Corridor and Feeder Routes: These link economic corridors to small towns and villages enhancing regional transport networks.
    – National Corridor Efficiency Improvement: Expansion of National Highways involved enhances the efficiency of highways as well as the carrying capacity.
    BI & IC Roads is network of roads that connect India with neighbouring countries and is hoped will encourage trade between the two countries and foster regional integration.
    -Coastal and Port Connectivity Roads: These relate coast and port hinterlands thus facilitating flow and improving coastal accessibility.
    -Expressways: To be precise, they are to serve as high-speed corridors which would significantly decrease the time needed for a journey and enhance transport productivity.

    The government further says that the project if implemented will go along way to boost the economy of India and as such extends the project deadline.

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Devendra Singhal
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Devendra SinghalBegginer
Asked: June 19, 2024In:
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What is the model of Swiss Challenge? Talk about the benefits and drawbacks of this model. (Answer in 200 words)

upsc: infrastructure
  1. Santosh Singh
    Santosh Singh Learner

    The Swiss challenge model means a method of public procurement in which an unsolicited proposal is received by a public authority for a project that predominantly involves uniqueness and specificity of design, technology and intellectual property rights. The government then examines the proposal andRead more

    The Swiss challenge model means a method of public procurement in which an unsolicited proposal is received by a public authority for a project that predominantly involves uniqueness and specificity of design, technology and intellectual property rights. The government then examines the proposal and if the proposal belongs to the declared policy of priorities, then it may invite competing counter proposals from third parties. In the event of a better proposal being received, the original proponent is given the opportunity to modify the original proposal. Finally, the proponent with the best plan is awarded the contract.
    In a 2009 ruling, the Supreme Court had approved the Swiss Challenge method for award of contracts. Further, respective state governments were encouraged to draft guidelines for procurement using the Swiss Challenge method. For example, Maharashtra and Karnataka have adopted their own policy guidelines.
    Advantages of Swiss Challenge Model

    • Promotes competition: It allows the project to be put for competitive bidding and counter- bidding so as to realize the optimum cost.
    • Enhances efficiency: It provides time and cost saving on pre project activities and feasibility studies for the public authority vis-à-vis other Public Private Partnership (PPP) models.
    • Professionalism: With proper identification of timelines, risks and their allocation, it becomes easier for the public authority as the project preparation is done in a more professional manner and in turn reducing red-tapism.
    • Creativity: Since this model allows the prospective bidders to analyse the design submitted by their competitors and come out with better design, it promotes creative designing and project execution.
    • Equitability: Useful for the governments that have limited technical and financial capacity to develop projects.

    Problems associated with Swiss Challenge Model

    • Issue of Transparency: The biggest concerns are the lack of sufficient transparency and inadequate competition, while dealing with unsolicited proposals and thus it becomes difficult to fix accountability.
    • Crony capitalism: This method could breed crony capitalism by allowing companies to employ dubious means to bag projects.
    • Bidding asymmetry: There is asymmetry in bidding time given to bidders to prepare counter proposals in relation to time taken by originator for preparation.
    • Issue of legal validity: There are no adequate regulatory and legal frameworks. Further, there is a problem of proper legal validity of using this method when a counter proposal contains different specifications than the original proposal.
    • Difficult to measure the monetary value: It is very difficult to measure monetary value of an unsolicited proposal when a contract or project is not given to the original proponent.

    However, these issues can be addressed by instituting a national policy framework for the Swiss Challenge method. There should be wider participation and greater flexibility to promote innovation at the pre-proposal stage and sufficient time for counter-bidders to respond at the post-proposal stage.

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Suraj Singh
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Suraj SinghLearner
Asked: June 21, 2024In:
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Talk about the several problems that India’s port infrastructure is facing and mention the recent steps the government has taken to solve them. (Answer in 200 words)

upsc: infrastructure
  1. Kamini g
    Kamini g Learner

    India, having a coastline of more than 7500 kilometres, is serviced by 13 major ports and more than 200 notified minor and intermediate ports. The Economic Survey 2021-22 has called for improved port governance and augmentation as one of the key drivers of the infrastructure sector and a necessary vRead more

    India, having a coastline of more than 7500 kilometres, is serviced by 13 major ports and more than 200 notified minor and intermediate ports. The Economic Survey 2021-22 has called for improved port governance and augmentation as one of the key drivers of the infrastructure sector and a necessary vehicle for social and economic transformation.

    However, many issues and impediments have hindered the development of the port infrastructure in India, which include:

    • Financial constraints: Underinvestment and poor financing have led to inadequate port infrastructure. This has also been one of the reasons for the dismal condition of ports, especially the non-major ports.
    • Limited private sector involvement: The financial viability of port projects is a major deterrent for private developers as well as financiers. Greenfield port projects are usually in remote locations and considerable government level support is required to create basic infrastructure for site access.
    • Regulatory issues: Major and non-major ports fall under different jurisdictions and the regulatory framework is also rigid. Further, there have been constraints in port infrastructure development due to land acquisition issues and delayed environmental clearances.
    • Infrastructure bottlenecks: The high turnover time and pre berthing time, and freight costs make Indian ports less competitive. For example, in Singapore, the average ship turnaround time was less than a day and in India, it was just over two days.
    • Old docks and terminals: There have been issues related to poor maintenance of old ports and lack of efforts for their upgradation.

    With the acknowledgement of the crucial role of the port infrastructure modernisation and augmentation, following measures have been undertaken by the government:

    • The Sagarmala project, which aims to modernize India’s ports so that port-led development can be augmented and coastlines can be developed to contribute to India’s growth.
    • In 2016, India passed the Central Port Authority (CPA) Act, which grants more autonomy to the major ports.
    • The Revised Model Concession Agreement (MCA) provides incentives for the private sector to get involved in port development. The government provides a 10-year-tax holiday to companies that help maintain and operate ports.
    • The Major Port Authorities Act, 2021, provides for regulation, operation and planning of major ports in India by vesting their administrative control on the boards of major ports authorities.
    • A new captive policy for port-dependent industries has been prepared to address the challenges of renewal of concession period, the scope of expansion and creating a dynamic business environment.
    • Initiatives to enhance Ease of Doing Business include implementing Enterprise Business System (EBS) to simplify and digitize processes across Major Ports by 2021 and developing National Logistics Portal (Marine).

    The country’s marine sector is intricately linked to economic trade and competitiveness. The Maritime Indian Vision 2030 is a step in the right direction to enhance the port infrastructure and give the necessary impetus for rapid and efficient expansion of India’s port sector.

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Rohit Valiyan
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Rohit ValiyanLearner
Asked: June 22, 2024In:
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What are InvITs, or Infrastructure Investment Trusts? Talk about their importance to the development and expansion of India. (Answer in 200  words)

upsc: infrastructure
  1. Devendra Singhal
    Devendra Singhal Begginer

    Infrastructure Investment Trusts (InviTs) are collective investment vehicles similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return. In India, InvITs are governed by SEBRead more

    Infrastructure Investment Trusts (InviTs) are collective investment vehicles similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a small portion of the income as return. In India, InvITs are governed by SEBI (Infrastructure Investment Trusts) (Amendment) Regulations, 2016.

    The following are the key features of InvITS:

    • InvITs are designed as a tiered structure with a sponsor setting up the InvIT, which in turn, invests into the eligible infrastructure projects either directly or via special purpose vehicles. (SPVs).
    • These long-term revenue-generating infrastructure assets, in turn generate cash flows, which are then distributed to the unitholders periodically.
    • InvITs are a hybrid between equity and debt investment, i.e., it has features of both equity and debt.
    • Public InvIT units can be listed and traded on a stock exchange like equity stocks.
    • For example, National Highways Authority of India’s (NHAI’s) InvIT is a trust established under the Indian Trust Act, 1882 and Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.

    Significance of InvITs for India’s growth and development:

    • Infrastructure creation: InvITs spur infrastructure creation by providing an efficient way to raise capital from investors development. individual and institutional and fund new projects for
    • Predictable and stable capital: InvITs help the infrastructure developers to recycle capital locked in long-term infrastructure projects such as roads, transmission lines or renewable assets.
    • Attract foreign investment: InvITs attract the interest of foreign investors especially pension funds, sovereign wealth funds and insurance companies.
    • Low risk: As per the SEBI regulations, InvITs must invest at least 80% of their assets in projects that are completed and revenue-generating. InvITs cannot invest more than 10% of their assets in under-construction projects.
    • Robust corporate governance: Regulatory framework built around InvIT’s incorporates corporate governance, stable long-term returns because of mandatory distribution rules, lower risks, and tax benefits on income distributions.
    • High quality assets: InvlTs house long-term infrastructure assets with superior credit quality and low demand and price-related risks, i.e., assured annuity cash flows (pre-regulated cash flows every year) such as power transmission, renewable, telecom towers, roads, and gas distribution.

    Despite multiple benefits associated with the InvITs, there are associated risks related to their operation, refinancing, regulation and return. Considering the fact that infrastructure development is pertinent for India’s growth and development, there is a need to address the associated risks.

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Ram Lal
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Ram LalBegginer
Asked: June 22, 2024In:
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By 2030, the National Rail Plan (NRP) for India – 2030 aims to establish a railway network that is “future ready.” Talk about it. (Answer in 200 words)

upsc: infrastructure
  1. Devendra Singhal
    Devendra Singhal Begginer

    The Indian Railways have prepared a National Rail Plan (NRP) to create a 'future ready' railway system by 2030. The NRP is aimed to formulate strategies based on both operational capacities and commercial policy initiatives. It seeks to create capacity ahead of demand, which in turn, would also cateRead more

    The Indian Railways have prepared a National Rail Plan (NRP) to create a ‘future ready’ railway system by 2030. The NRP is aimed to formulate strategies based on both operational capacities and commercial policy initiatives. It seeks to create capacity ahead of demand, which in turn, would also cater to future growth in demand right up to 2050.
    The National Rail Plan seeks to create a ‘future ready’ railway system by 2030 in the following ways:
    • Formulating of strategies based on both operational capacities and commercial policy initiatives to increase the modal share of the Railways in freight to 45%.
    • Reducing transit time of freight substantially by increasing average speed of freight trains to 50Kmph.
    • Under the plan, Vision 2024 has been launched for accelerated implementation of certain critical projects by 2024 such as 100% electrification, multi-tracking of congested routes, upgradation of speed to 160 kmph on Delhi-Howrah and Delhi-Mumbai routes, upgradation of speed to 130kmph on all other Golden Quadrilateral-Golden Diagonal (GQ/GD) routes and elimination of all Level Crossings on all GQ/GD route.
    • Identifying new Dedicated Freight Corridors and High Speed Rail Corridors.
    • Assessing rolling stock requirement for passenger traffic as well as wagon requirement for freight.
    • Assessing locomotive requirement to meet twin objectives of 100% electrification (Green Energy) and increasing freight modal share.
    • Assessing the total investment in capital that would be required along with a periodical break up.
    • Sustained involvement of the private Sector in areas like operations and ownership of rolling stock, development of freight and passenger terminals, development/operations of track infrastructure etc.
    • Complete executable gauge conversion projects.
    • 58 Super critical Projects and 68 Critical Projects have been identified for completion by 2024.

    In the historical evolution of the Railways in India, the emphasis has largely been on passengers and not on freight. The NRP seeks to rectify this bias, and develop a capacity that will cater to demand in 2050. In comparison with the earlier Committee reports that mainly concentrated on policy issues and operational constraints, the NRP includes a detailed analysis of the existing network as well. Furthermore, the NRP seeks to make decisions around new tracks and investments more objective, which were previously often driven by political considerations and were ad hoc in nature.

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On: March 7, 2025 Comments: 0

मानव-वन्यजीव संघर्ष का प्रबंधन

प्रधानमंत्री की घोषणा: मानव-वन्यजीव संघर्ष प्रबंधन के लिए एक समर्पित केंद्र की स्थापना। चुनौतियाँ: जनसंख्या वृद्धि और संसाधनों की प्रतिस्पर्धा। वन्यजीव संरक्षण का महत्व पारिस्थितिक संतुलन और जलवायु अनुकूलन: वन्यजीव पारिस्थितिकी तंत्र को बनाए रखने और जलवायु पैटर्न को विनियमित ...

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