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Home/upsc: infrastructure/Page 4

Mains Answer Writing Latest Questions

Neeru Kumari
  • 1
Neeru KumariBegginer
Asked: July 24, 2024In:
  • 1

India’s railway industry is beset by problems with inadequate infrastructure, safety, and funding. Explain.

upsc: infrastructure
  1. Rajesh Meena
    Rajesh Meena Begginer

    India has the fourth largest railway network in the world that runs almost 21000 trains carrying 23 million passengers and 3 million tonnes of freight per day. It also is the largest public sector employer with around 1.3 million employees. Although Indian Railways (IR) have come a long way in termsRead more

    India has the fourth largest railway network in the world that runs almost 21000 trains carrying 23 million passengers and 3 million tonnes of freight per day. It also is the largest public sector employer with around 1.3 million employees. Although Indian Railways (IR) have come a long way in terms of the number of trains or the carrying capacity, there still remain wide gaps across the following areas that need a relook:

    • Safety issues: During 2013-2018, for example, an average of around 110 accidents took place every year, with around 890 casualties over the period 2010-18. During 2017-18 alone, Indian Railways reported 73 consequential train accidents. Although the number of accidents has decreased over the years, it still remains a cause of concern.
      • An alarming 85% of these accidents were caused by human failure. Other factors responsible for railway accidents are equipment failure, overaged tracks, wagons, coaches, bridges and poor signalling system etc.
      • The number of accidents at unmanned level crossings in India, still comprise almost 14% of the total number of consequential rail accidents.
      • According to the Khanna Railways Safety Review Committee Report, nearly 25 per cent of the total railway track in India is overaged and is due for replacement.
    • Insufficient Financing: Indian Railways has historically been financed mostly through internal accruals and budgetary support.
      • Over the past decade, the Centre’s share in capital receipts has stagnated and the railways own investment is negligible in the wake of no surpluses.
      • External financing in Indian Railways started only from the 7th FYP. However, the share of external budgetary sources has not increased commensurately starting from 17% in 7th FYP to only 27% in 2014-15.
      • Even limited private sector participation has not been fruitful because of lack of adequate involvement with regard to policy-making, operational functions etc.
      • Furthermore, there is a lack of corporate entities like IRCTC, RITES etc. that can borrow on behalf of Indian Railways. This not only limits its market access but also absolves the Indian Railways from a critical investor oversight.
    • Infrastructural problems: Infrastructural issues such as outdated wagons, lack of modern infrastructure, wearing of railway tracks, lack of passenger facilities including cleanliness at the railway stations, lack of security arrangement on the railways resulting in theft and dacoities, etc., are other issues that mire the Indian Railways.
      • This has an impact on the operational efficiency and safety of railway operations. For instance, adherence to schedules is often disturbed during winters owing to lack of portable GPS-based fog safe devices, and other technologies, especially in the Northern Railways.

    In this context, a slew of reforms to improve the functioning and redefine the role of Indian Railways must be in order. The government must implement all the appropriate recommendations of the Bibek Debroy Committee, execute safety action plans and other reforms to reinvigorate railway infrastructure in India. Many reforms are already underway such as elimination of all manned level crossings, setting up a Special Purpose Vehicle (SPV), Indian Railway Station Development Corporation (IRSDC), Swachh Rail Swachh Bharat, and modernisation of railway stations and the recent proposal to merge railway services from 2021.

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Avinash Mohan
  • 0
Avinash MohanBegginer
Asked: July 23, 2024In:
  • 0

Evaluate the impact of these investments on the effectiveness of logistics, the integration of domestic and international markets, and the general competitiveness of the Indian economy. Assess the progress made by the Indian government in developing and modernizing the nation’s ...

upsc: infrastructure
  1. Kamini g
    Kamini g Learner

    The development and modernization of transportation infrastructure in India, including roads, railways, ports, and airports, have been crucial for enhancing efficiency in logistics, integrating domestic and international markets, and boosting the overall competitiveness of the economy. Let's assessRead more

    The development and modernization of transportation infrastructure in India, including roads, railways, ports, and airports, have been crucial for enhancing efficiency in logistics, integrating domestic and international markets, and boosting the overall competitiveness of the economy. Let’s assess the progress made by the Indian government in this regard and evaluate the impact of these investments.

    Progress in Transportation Infrastructure Development:

    1. Roads:

    • Expansion and Connectivity: The National Highways Development Project (NHDP) and Bharatmala Pariyojana have focused on expanding and upgrading the road network, enhancing connectivity between major cities, ports, and economic corridors.
    • Rural Connectivity: Pradhan Mantri Gram Sadak Yojana (PMGSY) has aimed at connecting rural areas through all-weather roads, improving access to markets and services.

    2. Railways:

    • Dedicated Freight Corridors: Construction of Eastern and Western Dedicated Freight Corridors aims to decongest existing rail networks and improve freight movement efficiency.
    • Modernization: Initiatives like station redevelopment, electrification of rail lines, and introduction of high-speed trains (e.g., Vande Bharat Express) are modernizing rail infrastructure.

    3. Ports:

    • Capacity Expansion: Major ports have undergone capacity expansion and mechanization to handle larger volumes of cargo efficiently.
    • Sagarmala Project: The Sagarmala Programme aims at modernizing port infrastructure, enhancing connectivity between ports and hinterland, and promoting port-led industrialization.

    4. Airports:

    • Modernization and Expansion: Airports Authority of India (AAI) has been modernizing existing airports and developing new ones to cater to growing air traffic demands.
    • Regional Connectivity Scheme (UDAN): UDAN aims to improve regional connectivity by developing underserved and unserved airports across the country.

    Impact of Infrastructure Investments:

    1. Efficiency of Logistics:

    • Reduction in Transit Time and Costs: Improved road and rail connectivity has reduced transit times and logistics costs, making movement of goods more efficient.
    • Multimodal Connectivity: Integrated transport networks (road-rail-air) under initiatives like Sagarmala and Bharatmala have facilitated seamless multimodal logistics operations.

    2. Integration of Domestic and International Markets:

    • Trade Facilitation: Efficient ports and airports have facilitated smoother movement of goods, enhancing India’s connectivity with global markets.
    • Supply Chain Efficiency: Enhanced connectivity has improved supply chain efficiency, benefiting industries like manufacturing, agriculture, and exports.

    3. Overall Competitiveness of the Indian Economy:

    • Attracting Investments: Improved infrastructure has made India a more attractive destination for investments, both domestic and foreign, by reducing logistics costs and improving connectivity.
    • Regional Development: Infrastructure development has spurred economic activity in hinterland regions, contributing to balanced regional development and employment generation.

    Challenges and Considerations:

    • Funding and Financing: Sustained investment is crucial to address the funding requirements for large-scale infrastructure projects.
    • Regulatory Clearances: Delays in obtaining regulatory approvals can impact project timelines and escalate costs.
    • Last-mile Connectivity: Ensuring last-mile connectivity to remote areas and improving urban transport infrastructure remains a challenge.

    Conclusion:

    The Indian government has made significant strides in developing and modernizing transportation infrastructure, which has positively impacted logistics efficiency, market integration, and overall economic competitiveness. Continued focus on infrastructure development, addressing challenges like funding and regulatory clearances, and enhancing last-mile connectivity will be essential to sustain and maximize the benefits of these investments for India’s economic growth and development in the global context.

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Bhairavi Gauatam
  • 1
Bhairavi GauatamBegginer
Asked: July 20, 2024In:
  • 1

Chronic underinvestment has hurt Indian Railways, negatively affecting important facets of its business. Talk about the difficulties the railroads have in building infrastructure quickly in this scenario. Mention the government’s actions taken in this respect as well.

upsc: infrastructure
  1. Mona Singh
    Mona Singh Begginer

    In the last few decades, there has been considerable underinvestment in rail infrastructure, thereby reducing the efforts required to expand, strengthen and modernize the Indian Railways. Further, the investment has been insufficient for introducing technological improvements, improving safety aspecRead more

    In the last few decades, there has been considerable underinvestment in rail infrastructure, thereby reducing the efforts required to expand, strengthen and modernize the Indian Railways. Further, the investment has been insufficient for introducing technological improvements, improving safety aspects and meeting the demands of both freight and passenger customers.

    Challenges in speedy creation of rail infrastructure include

    • Regulatory delays: The process of land acquisition is lengthy and cumbersome in India because of land disputes and rehabilitation and compensation issues. For instance, several cases have been filed in Supreme Court and High Courts against land acquisition for Dedicated Freight Corridors.
    • Non-viability of decisions: The working of Indian Railways is caught up between making it a self-sufficient organization and serving it as a transport system for the poor, the result being rise in passenger fares and new trains and routes being decided on non-commercial reasons.
    • Financial issues:
      • High operating ratio (at 98% in 2018) curtails the ability of Railways to make fresh investments through internal accruals. The alarming increase in operating ratio can be attributed to implementation of the Seventh Pay Commission award, reduced passenger fares, and declining market share in freight traffic.
      • High debt servicing costs put further strain on railway finances. It is set to rise at a much faster pace in the coming five years due to repayment obligations related to Dedicated Freight Corridors and High-Speed Rail (HSR) network, thereby putting a freeze on newer infrastructure projects.
      • Rail infrastructure development is highly dependent on government funding, which is limited. Further, few PPP projects which have been implemented are fraught with several hurdles including unrealistic cost estimates.
    • Difficult terrain and weather conditions: Risk assessment in hazard zones and uncertain weather conditions such as in rugged Himalayan terrains and flood prone Brahmaputra region pose challenges in completing projects on time.
    • Law and order problems: Many projects in the North-Eastern region, Jammu and Kashmir and Naxal-affected areas of Madhya Pradesh, Andhra Pradesh, Chhattisgarh, etc. are suffering on account of law and order problems.

    Faced with the above challenges, a number of steps have been taken up by the government, including

    • Increasing Capital Expenditure (Capex): Annual Average Capex has been doubled from Rs.45,974 Cr in 2009-14 to Rs. 99,512 Cr in 2014-19. In the recent Budget Estimate (2021), Capex has been further increased to Rs. 2.15 Lakh Crore.
    • Vision 2024 document: It has been envisaged to achieve targets of 2024 Million Tonnes freight loading by 2024.
    • National Rail Plan (NRP) 2030: It has been developed with a view to develop infrastructure by 2030 to cater to the traffic requirements up to 2050 and increase modal share of rail freight to 45%.
    • National Infrastructure Pipeline (2020-25): It has dedicated investment worth more than 13 lakh crores to revamp the Indian Railways.

    In addition, the need of the hour is to bring administrative reforms in Railways, introduction of new-age technology, prioritization of projects and their tim- bound execution and outcome-oriented action, privatization of some of the operations of the Indian Railways as suggested by the Bibek Debroy Committee etc.

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Panna Lal
  • 1
Panna LalBegginer
Asked: July 19, 2024In: ,
  • 1

“Land banks” have the potential to significantly contribute to the expansion of India’s economy and ease of doing business. Talk about it.

upsc: infrastructure
  1. Santosh Singh
    Santosh Singh Learner

    Land banks are government agencies or private organisations that help manage and dispose of vacant properties, vacant land, or tax-delinquent properties so that these can be redeveloped for more productive use. Adoption of the idea of land banks has the following advantages: Ready availability of laRead more

    Land banks are government agencies or private organisations that help manage and dispose of vacant properties, vacant land, or tax-delinquent properties so that these can be redeveloped for more productive use. Adoption of the idea of land banks has the following advantages:

    • Ready availability of land: Land banks will help in reducing land-related litigations and streamlining the availability of associated permits, which would help reduce cost overruns and decrease corporate bankruptcy.
    • Attract investment: Land banks can serve as a one-stop solution to the free and easy accessibility of all related industrial information, which will help in informed decision making by investors and boost investments.
    • Addressing inordinate delay in disposing government land: This happens due to the absence of a single comprehensive land database, opposition from trade unions, illegal encroachment and lack of coordination between various ministries. A dedicated land bank will ensure time-bound disposal of unutilised land.
    • Improves land utilisation: Land banks will allow for better utilization of unused government land, including that in notified SEZs, which has about 52 percent vacant land. Moreover, the government can use these lands for public projects like highway construction, afforestation, nature restoration etc. and promote economic development.
    • Promotes economic activity: At a time when the COVID-19 pandemic has led to the halt of many economic activities, land banks can be used to attract investment and jump-start the economy.

    However, pursuing the idea of land bank scheme may not always lead to expected results and could create various issues, such as

    • Questions of ownership and rights: Common or joint ownership of land is a practice in India and any difference between owners over the control of land and its use could lead to land conflict.
    • Legal loopholes: According to the Forest Conservation Act of 1980, the government is required to get forest clearances or approval from the Ministry of Environment to use forest land for a non-forest purpose. However, there is no provision to obtain forest clearance for a land bank under the Act.
    • Potential future conflicts: There is a potential risk of future investments on land under the land bank scheme facing conflicts similar to those that prevented the previously planned projects. Moreover, the mismatch between the de jure records presented by the bank and the de facto utilisation on the ground leads to ambiguity.

    In order to make land banks a robust strategy, associated concerns should be given adequate attention. Reforms including creation of a land record repository, digitization and integration of all records relating to land ownership titles, adequate checks and balances, defining a structured timeline for timely resolution of property disputes etc. need to be adopted.

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Neeru Kumari
  • 0
Neeru KumariBegginer
Asked: June 29, 2024In:
  • 0

Jawaharlal Nehru Port (JNP) became India’s first port owned entirely by a landowner. What does the Landlord Port model mean to you? Which models are used in the various port management systems?  (Answer in 250 words)

upsc: infrastructure
  1. Santosh Singh
    Santosh Singh Learner

    Jawaharlal Nehru Port (JNP) is one of the leading container ports of the country and is ranked 26th among the top 100 global ports. It is a container handling port accounting for around 50% of the total containerized cargo volume. The JNP became the first 100% Landlord Major Port of India. A LandlorRead more

    Jawaharlal Nehru Port (JNP) is one of the leading container ports of the country and is ranked 26th among the top 100 global ports. It is a container handling port accounting for around 50% of the total containerized cargo volume. The JNP became the first 100% Landlord Major Port of India.
    A Landlord Port is characterized by its mixed public-private orientation. Under this model, the port authority acts as the regulatory body and landlord, while port operations (especially cargo handling) are carried out by private companies. Today, the Landlord Port is the dominant port model in larger and medium-sized ports.
    The features of the Landlord Port include:

    • The port authority manages the basic port assets by letting land and infrastructure to port operators in an efficient manner. It would also be involved in planning, lease negotiation, safety, navigation and overall coordinating functions.
    • Cargo services, marine service, ancillary services, berths etc. are privatised on captive/BOT(Build-Operate-Transfer) basis to the primary port users.
    • Port operators and other undertakings which need to be located in the port, lease the land, infrastructure and associated services and provide them to the secondary users cargo owners, ship owners and cargo ship owners.

    Other types of models employed in port management are as follows:

    • Public service port model: In this model, the public authority owns the land and all available assets-fixed and mobile-and performs all regulatory as well as operational tasks. The main objective is to provide a smooth and secured transaction through the port and create employment rather than focusing on profit.
    • Tool port model: It is close to the public service port model with the public authority owning all the land and providing all the infrastructure and superstructure including, cranes, port control equipment, and other supplies. The port operator uses the provided equipment to continue the port operation. A tool port is a transitional form between a public service port and a landlord port.
    • Corporatized port model: These ports are almost entirely privatized, with the exception that the ownership remains public and often assumed as a majority shareholder. The port authority essentially behaves as a private enterprise. This management model is unique since it is the only one where ownership and control are separated.
    • Private service port model: The port authority is entirely privatized with almost all the port functions under private control with the public sector retaining a standard regulatory oversight. Still, public entities can be shareholders and thus gear the port towards strategies that are deemed to be of public interest.

    The government enacted the Major Port Authorities Act, 2021 to empower the ports and enable them to perform with greater efficiency on account of increased autonomy in decision-making and by modernizing their institutional framework. Further, as part of the Maritime India Vision (MIV) 2030, globally benchmarked targets have been defined to help India develop best-in-class port infrastructure.

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Dolly Mehara
  • 0
Dolly MeharaLearner
Asked: June 26, 2024In:
  • 0

Private investment has contributed very little to the financing of infrastructure in the road sector, even after various measures were adopted to expedite the process. Talk about it. (Answer in 250 words)

upsc: infrastructure
  1. Shreya Shah
    Shreya Shah Begginer

    Despite various measures taken to facilitate financing in the road sector, private investment remains limited due to several challenges. One important obstacle is the perception of high risk associated with road projects. These projects tend to have longer gestation periods and higher initial investRead more

    Despite various measures taken to facilitate financing in the road sector, private investment remains limited due to several challenges. One important obstacle is the perception of high risk associated with road projects. These projects tend to have longer gestation periods and higher initial investments, making them unattractive for private investors seeking quick returns coupled with regulatory and bureaucratic hurdles can delay project approval and implementation, further restricting private participation.

    Government initiatives such as public-private partnerships (PPPs) and feasibility gap financing (VGF) have been initiated to mitigate these issues. However, this strategy is not effective due to inconsistent implementation and unrealistic planning. Furthermore, investor confidence can be affected by economic and political factors.

    Some in points such as:

    1. High-Risk-Thinking:

    – Long gestation period and adequate initial investment.

    – Investors are looking for quick returns.

     

    2. Legal and professional restrictions:

    – Delays in project approval and execution.

    – Improved implementation.

     

    3. Insufficient Economic Growth:

    – Lack of real revenue generated through taxation.

    – Financial uncertainty.

     

    4. Lack of robust regulatory framework:

    – Difficulty in resolving disputes.

    – Difficulties in implementing agreements.

     

    5. Ineffective government strategies:

    – Applications other than PPP and VGF.

    – Policy deficiencies affecting investor confidence.

     

    6. Economic and Political Environment:

    – Effects of the financial crisis.

    – Changes in government policies affecting the status of the business.

     

    7. A comprehensive solution is needed:

    – Removal of barriers to increased private sector participation is essential.

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Gita Sharma
  • 0
Gita SharmaBegginer
Asked: June 26, 2024In:
  • 0

India’s railway network is among the biggest in the world, yet its trains move more slowly than those in wealthy countries. Give the reasons for this and the actions the government is taking in this respect. (Answer in 250 words)

upsc: infrastructure
  1. Rishika Raj
    Rishika Raj Begginer

    Infrastructure  Constraints: Much of India's railway infrastructure is outdated and needs modernization. This includes old tracks, signaling system and station that limit the speed at which trains can travel safely.   High Trafic Density:  Indian railways carry a massive volume of passenger andRead more

    • Infrastructure  Constraints: Much of India’s railway infrastructure is outdated and needs modernization. This includes old tracks, signaling system and station that limit the speed at which trains can travel safely.

     

    • High Trafic Density:  Indian railways carry a massive volume of passenger and freight traffic, leading to congestion on tracks. This congestion prevents train from operating at higher speeds.

    . Old Rolling Stock: The trains themselves may be older models that are not designed for high speed travel. Moderns high speed trains require specialized rolling stock with advanced feature for safety and efficiency.

    . Safety Concerns: Indian railways prioritize safety, which sometimes necessitates slower speeds, specialy on older tracks and in densely populated areas.

    To address this challenges the Indian government has initiated several steps:

    1. Dedicated Freight Corridors ( DFCs) : These corridors are being developed to separate freight traffic from passenger traffic which will help in decongesting the existing railway network and allowing faster movement of both passengers and freight.

     

    2. High Speed Rail Projects: The government has launched ambitious high speed rail (HSR) projects such as the Mumbai-Ahmedabad corridor( Bullet Train Project) which aims to introduce modern high speed trains capable of speeds up to 350Km/h.

     

    3.Modernization of Infrastructures: Upgradation and modernization of existing railway tracks, including gauge conversion and elimination of level crossing are ongoing to facilitate  faster train movements.

    4. Introduction  of Semi -High Speed -Trains: Projects like the Gatimaan Express and Vande Bharat Express (Train 18) are examples of semi-high-speed trains introduced on select routes to improve travel times and passenger comfort.

    5.Technological Upgradation: Incorporation  of modern signaling system, track maintenance technologies and rolling stock improvements are being implemented to enhance operational efficiency and safety.

    6.Partnership and Foreign collaborations: 

    Collaboration with Foreign countries and companies for technology transfer and expertise in high speed rail development is being actively pursued.

    While these efforts are promising, achieving  comparable  speeds to developed nations will require sustained investment, technological  advancements and comprehensive modernization of the entire railway.

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Anshika Singh
  • 0
Anshika SinghLearner
Asked: June 25, 2024In:
  • 0

The recently introduced National Logistics Policy promises to speed up the development of jobs while also revolutionizing India’s logistics sector. Talk about it. (Answer in 250 words)

upsc: infrastructure
  1. Shekhar jaat
    Shekhar jaat Begginer

    The National Logistics Policy (NLP) formulated by the Ministry of Commerce and Industry was launched in September 2022. It aims to lower the cost of logistics from the existing 13-14% and lead it to par with other developed countries. The Policy lays down an overarching interdisciplinary, cross- secRead more

    The National Logistics Policy (NLP) formulated by the Ministry of Commerce and Industry was launched in September 2022. It aims to lower the cost of logistics from the existing 13-14% and lead it to par with other developed countries. The Policy lays down an overarching interdisciplinary, cross- sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector. The policy complements the PM GatiShakti National Master Plan. Following major steps would be taken under NLP that have the potential to transform India’s logistics ecosystem:

    • Integration of Digital System (IDS): There will be digital integration of different systems of seven various departments (like road transport, railways, aviation, commerce ministries and foreign trade). The digital data of these ministries is to be integrated under the IDS. This will help smoothen cargo movement and reduce logistical costs,
    • Unified Logistics Interface Platform (ULIP): This will ensure shorter and smoother cargo movement and enable the exchange of information confidentially on a real-time basis.
    • Ease of Logistics: E-Logs, a new digital platform, will allow industry to directly take up operational issues with government agencies for speedy resolution. It will enable and ensure the ease of logistics business through transparency and accessibility.
    • System Improvement Group: It will monitor all logistics-related projects regularly through a group of officers from ministries concerned.

    The above-mentioned processes will not only help in streamlining the regulatory environment in the country but also boost employment creation:

    • Growth of the sector: According to the Ministry of Commerce and Industry, the Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate a 10% decrease in indirect logistics cost leading to the growth of 5 to 8% in exports.
      • The NLP policy would accelerate hiring and creating new job roles in transport, supply chain management, digital warehousing and other fields and would also help the economy to recover from challenges faced during pandemic.
    • Multiplier effect: The policy would significantly impact the manufacturing and infrastructure sectors, potentially making India the next global manufacturing hub. Infrastructure development has a multiplier effect on the economy, fuelling faster job creation in the cement, steel, and machinery subsectors of the construction industry.
    • Human Resources Development: Most entry-level workers in India are hired by the infrastructure and construction industries. Providing them access to a skilling ecosystem can further boost their productivity, earnings potential, return on investment (ROI), and project turnaround time.

    NLP is a significant step as it endeavours to make India to be among the top 25 countries by 2030 in the Logistics Performance Index ranking, and create data driven decision support mechanism for an efficient logistics ecosystem. However, for its effective implementation and desired outcome all stakeholders including the states should be aligned to the stated objectives of the policy.

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Ram Lal
  • 0
Ram LalBegginer
Asked: June 22, 2024In:
  • 0

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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Rohit Valiyan
  • 0
Rohit ValiyanLearner
Asked: June 22, 2024In:
  • 0

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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मुख्य विषय: भारत-अमेरिका संबंधों की मजबूती, विशेषकर रक्षा, प्रौद्योगिकी और क्षेत्रीय सहयोग में प्रगति। सहयोग के प्रमुख क्षेत्र 1. रक्षा एवं सुरक्षा सहयोग भारत और अमेरिका के बीच रक्षा संबंधों का विस्तार। प्रमुख रक्षा साझेदार (MDP) का दर्जा और STA-1 ...

On: February 22, 2025 Comments: 0

India’s Disaster Management

The article discusses the growing tensions between the Centre and states regarding disaster relief funding in India. It emphasizes the need for a transparent and equitable disaster management framework. Key Disaster Threats India Faces Increasing Frequency of Extreme Weather Events ...

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