Implementation issues - infrastructure, Business Economics

IMPLEMENTATION ISSUES:

Infrastructure sector, especially economic infrastructure, projects are facing a variety of problems, which are to be addressed in order to realise the full advantage of infrastructure investments in the country. These are: 

a)  Cost and Time Overruns: Cost and time overruns of infrastructure projects in general and projects managed by public sector enterprises in particular, still remain at very high levels. These arise due to the delays in obtaining clearances like environmental clearances from the concerned Government bodies, land acquisition problems, financing problems and problems arising due to the poor management practices of the agencies involved. 

b)  Huge Inter-State Variations: Considerable inter-state variations of infrastructure development exist in the country. This is owing to the situation of State governments having major role in developing economic infrastructure. Many of the critical development subjects are added to the 'State' list. In India, National Plans are prepared for the country as whole and do not specify state specific growth targets. Some states, owing to their increasing revenue expenditure and inefficient economic management are not able to develop the requisite infrastructure.  

c)  Cross Subsidisation: Cross subsidisation practices followed in different infrastructure segments like railways, telephones, and electricity, though they have been reduced drastically in sectors where agencies are in position, still call for major tariff rebalancing exercise.  

d)  Regulatory Mechanism: In the liberlised policy environment, designing suitable regulatory environment, which prohibits the exploitation of natural monopoly nature of infrastructure services by the private operators is necessary. Designing, an efficient regulatory system, specifying their scope, roles and responsibilities, has become a major problem associated with the development of infrastructure sectors. 

e)  Huge Project Risks: Private investments are not forthcoming as the private operators are deterred by the huge risks and low returns in the initial years associated with infrastructure projects. Availability of long tenor loans and risk insurance policies need to be designed.  

f)  Policy on Private Participation: Suitable sector specific policies for private investments in the identified aspects need to be put in place.    

Posted Date: 11/10/2012 7:48:13 AM | Location : United States







Related Discussions:- Implementation issues - infrastructure, Assignment Help, Ask Question on Implementation issues - infrastructure, Get Answer, Expert's Help, Implementation issues - infrastructure Discussions

Write discussion on Implementation issues - infrastructure
Your posts are moderated
Related Questions
What are Rostowís assumptions? Assumptions of Rostowís: • Economic development procedure is universal which is all countries whether within Africa or Asia go by the same se

Distribution of benefits for transferring drivers to transit during a congested morning commute A residential suburb has N = 30,000 commuters who drive alone to jobs in a cen

purely competitive firms increase total revenue by

How is the social capital measured? Measurement of the socilal capital: Social capital is a latest, multidimensional, qualitative idea which is problematic to measure. Res

Calculate the market value of your corporation at the end of the sample period.  Multiply the last price in the sample times the number of shares outstanding at that time.  You can

QUESTION Write detailed notes on the following: (a) Activist and non activist monetary policy debate. (b) Optimality of Policy Rule compared to discretionary monetary pol

#question.During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use supply and demand diagrams, how the following markets are affected in t

QUESTION (a) What are the causes of inflation in an economy? (b) Discuss the policy implications that the central bank will implement if there is excess liquidity in the mar

What are the assumptions of dependency theory? The assumptions of dependency theory: Dependency theory extends Marx is theory of surplus value to international relationship

QUESTION 1 (a) What are the objectives and instruments of monetary policy? (b) "With financial liberalisation, there is a need to shift from direct instruments to indirect m