The 12th Five Year Plan in India aims to address persistent infrastructure deficits through increased investment. Key points:
1) Infrastructure sectors like power, highways, ports and airports face issues like deficits, losses, inadequate capacity and outdated technology.
2) Infrastructure investment was only 5% of GDP from 2002-2007 but increased to 7.2% under the 11th Plan with more private sector participation.
3) The 12th Plan projects total infrastructure investment of $1.07 trillion with nearly half from the private sector, focused on sectors like electricity, roads, telecom and railways.
4) Private sector investment is expected to continue growing significantly while central and state government contributions may decline as a percentage
2. Infrastructure Deficit
Power
11.1% peaking deficit and 8.5% energy shortage (April 2011-March
2012); 23.97 % T&D losses (2010-11) and; absence of competition;
and inadequate private investment
Highways
75,430 Km of NH (1.83% of network, 40% of traffic): only 24%
Four-lane; 50% Two-lane; and 26% Single-lane and Intermediate
standard; State highways also suffer from prolonged neglect
Ports
Inadequate berths, rail / road connectivity and draft are constraints
Airports
Inadequate capacity: Runways, aircraft handling capacity, parking
space & terminal buildings
Railways
Old technology; saturated routes: slow average speeds (freight: 22
kmph; passengers: 50 kmph); low payload to Tare ratio (2.6) 2
3. Inadequate investment in Infrastructure
Investment in infrastructure was only 5% of GDP in 2002-07; mainly
in the public sector; only 22% came from private capital
Economic liberalisation of the 1990s led to GDP growth of 7-9%;
not accompanied by similar rise in infrastructure spending
Infrastructure deficit increased during 10th Plan (2002-07) owing to
rapid growth of economy
East Asian economies and China typically invested 9-10% of GDP
in infrastructure
Investment increased by 2.1 times in 11th Plan (2007-12); 7.2% of
GDP; share of private investment rose to 38% .
3
4. Investment in Infrastructure: 11th Plan
135
125
XI Plan (2007-12):
115
Anticipated: US$ 484 bn
105 X Plan
(Rs. 19,35,058 cr.) Actual
95
US$ Billion
85
75 XI Plan
Anticipated
X Plan (2002-07):
65
Actual: US $ 229 bn
55 (Rs. 9,16,176 cr.)
45
35
4
(US$ 1 = Rs. 40 at 2006-07 Prices)
5. Investment in Infrastructure as % of GDP
(10th and 11th Five Year Plans)
9.00
8.41
Private
8.00
Public 7.32
6.81 6.94
7.00
Total 6.26
6.00 5.61
5.10
5.00 4.77 4.76 4.69
% of GDP
4.00
3.00
2.00
1.00
0.00
5
Provisional Figures for 2010-12
6. Growth of Private Investment
(10th and 11th Five Year Plans)
2,50,000
2,00,000
1,50,000
Rs. crore
1,00,000
50,000
-
6
Provisional Figures for 2010-12
7. Relative Share of Private Investment
(10th and 11th Five Year Plans)
90
Public
80
Private
70
60
Per cent Share
50
40
30
20
10
0
7
Provisional Figures for 2010-12
8. Share of Private Investment in different Sectors
(11th Five Year Plan)
90
81 80
80
70
64
60
Per cent Share
49
50
40
30
20
20
10
5
0
Ports Telecom Airports Electricity Roads & Bridges Railways
(incl. NCE)
8
9. Projected Investment in Infrastructure: 12th
18,00,000
Plan
XII Plan:
Projected: 55,74,692cr.
14,00,000
XI Plan:
Anticipated : Rs. 24,24,277 cr.
10,00,000
Rs. crore
6,00,000
XI Plan Anticipated
2,00,000 XII Plan Projected
2007-08
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2008-09
-2,00,000
9