A crisp and sharp presentation by Mr. Vinayak Chatterjee, Chairman-Feedback Infra on the three priorities for infrastructure in India. This was part of a lecture delivered at Pune International Centre on 7th May 2016.

1. 3 Priorities In The Infra Agenda
Pune: Saturday, May 7th, 2016
Vinayak Chatterjee
By

2. 1
“You and I come by
road or rail, but
economists travel
on infrastructure !”
Margaret Thatcher

3. 2
THE THREE PRIORITIES
A: GCFI (Gross Capital Formation In Infrastructure)
B: A National Market For Electricity
C: PPP Revival

4. 0
1
2
3
4
5
6
7
8
9
10
2002
4.8%
9.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
5.6%
10th Plan Average
5.0%
11th Plan Average
7.1%
12th Plan Expected Average
8.3%
11th Plan Expectation
(%ofGDP)
10th Plan Actual 12th Plan Projection
[Source: Erstwhile Planning Commission]
6.26%
7.32%
6.81%
8.41%
6.51%
7.40%
7.69%
8.08%
8.58%
Gross Capital Formation in Infra as % of GDP
3.0%
Historically
The “Infra Deficit”
3
?
3 YEARS NOW WITH NO VISIBILITY

5. 4
INVESTMENTS IN INFRA : 10TH, 11TH AND 12TH PLANS
Eleventh Plan
(2007 - 12)
Twelfth Plan
(2012 - 17)
Actuals
(April, 2012 –
March, 2016)
Achievement at
Current Prices*
Projection*
Grand Total (₹ Lac Crores) 23.86 56.32 ?
Grand Total (US $ Billions) 477@ 1126@ ?
Investment as % of GDP 7.1 8.3 ?
Share of Public Expenditure 63% 52% ?
Share of Private Capital 37% 48% ?
*₹ Lakh Crore at Current Prices; @50₹ = 1US$
Source: Erstwhile Planning Commission – 12th Plan Document
PUBLIC AND PRIVATE INVESTMENTS ARE A HUGE CONCERN

6. 5
ESTIMATES INDICATE 30% SHORTFALL

7. 6
B: A NATIONAL MARKET FOR ELECTRICITY

8. 7

9. 8
C: PPP REVIVAL

10. 9
WAKE-UP CALL FOR PPP VERSION 2.0
Finance Minister
- Mr. Arun Jaitley
announced ₹500
Crore for 3P India
in the Union
Budget : July,
2014
Dr. Vijay L. Kelkar
Committee on
“Revisiting and
Revitalizing the
PPP Model of
Infrastructure
Development”

11. 10
• Reset Risk Allocation
• Create truly Independent Regulators
• Create a Renegotiation Commission
• Resources for Long-term Investments
• Receiving All Critical Permissions before bid-out: “Plug and Play.”
THE 5Rs OF A PPP REVIVAL

12. 11
“The significance of a man is not in what he
attains, but rather what he longs to attain.”
- Kahlil Gibran

13. 12