In the past, development of infrastructure bond was completely in the hands of
the public sector and was plagued by slow progress, poor quality and
inefficiency. India's low spending on power, construction, transportation,
telecommunications and real estate, at $31 billion or 6% of GDP in 2002
had prevented India from sustaining higher growth rates. This has prompted the
government to partially open up infrastructure companies to the private sector allowing
foreign investment, and most public infrastructure, barring railways, is today
constructed and maintained by private contractors, in exchange for tax and
other concessions from the government.
Transmission and
distribution losses amount to around 20%, as a result of an inefficient
distribution system, handled mostly by cash-strapped state-run enterprises.
Almost all of the electricity in India is produced by the public sector. Power
outages are common, and many buy their own power generators to ensure
electricity supply. The infrastructure leads to the Economic development of India. Thereby paving the way for creating a
competitive market-based electricity technical news sector.
Substantial improvements in water
supply infrastructure, both in urban and rural areas, have taken place over the
past decade, with the proportion of the population having access to safe
drinking water rising from 66% in 1991 to 92% in 2001 in rural areas, and from
82% to 98% in urban areas. however, quality and availability of water supply
remains a major problem even in urban India, with most cities getting water for
only a few hours during the work. India has the world's third largest road network, covering about
3.3 million kilometers and carrying 65% of freight and 80% of passenger
traffic. Economic development of India started maximum in 20th century. Container traffic is growing at 15% a year.
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INFRASTRUCTURE
