The funds available for urban infrastructure(UI) development fall short by more than 10 times the actual requirement, according to the Rakesh Mohan committee report.
Addressing the second day session of Tech-2001, a power and construction seminar, on Thursday, Hudco director K Subramaniam said: "The commission estimates the requirement for UI development covering backlog, new investments and O&M costs for the next 10 years to be about Rs 1,50,000 crore ($57 billion). In contrast, a provision of around Rs 25,000 crore ($5.7 billion)has been made in both the 9th Plan and 10th Plan."
Nasser Munjee, managing director, IDFC, speaking on financing & policy issues, said most urban infrastructure schemes suffer from deficiency of services, which needs to be tackled immediately.
"Most of the times, there is a willingness on the part of the user to pay for quality services, but the lack of a proper system worsens the problem," he added.
Earlier N K Chidambaram, member, Railway Board, said with an growing demand for augmenting freight and passenger capacity, the traditional government funding becoming scarce and a change in the funding pattern is imperative. He felt private sector participation in future railway projects was crucial for sustaining the development of India's economy.
Chidambaram pointed out that the world average of passenger train movement is at 300 kmph and freight 200 kmph. In contrast, India's at 162 kmph and 75 kmph, respectively. Efforts are on to increase the speed of the freight movement at 100 kmph, which alone offered tremendous scope for private sector participation through various schemes like "own your wagon", leasing and so on, he said.
Chidambaram felt with the Indian Railways is intent on providing better safety, comfort and cost effective travel through latest technology in its rolling stock, both locomotives and EMUs. Hence there was tremendous opportunity for private manufacturers to augment rolling capacity of the railways.
Former chief secretary and current chairman of the JNPT, Arun Bongirwar, emphasised on the urgency for setting up excess capacity in the country's ports as, the world over, most ports operate at an average 60 per cent capacity which would lead to better ship movement at a day's notice. He said the actual port capacity and traffic as on March-end 1997 (at the end of 8th Plan) was 220 MT while traffic was 227.26 MT. In short, the capacity was inadequate to handle the traffic-movement.
The 10th Plan's port capacity needs an investment of Rs 18,800 crore, of which around Rs 11,096 crore will come from private sector through joint ventures and leasing of assets. It should enhance port capacity to 475 million tonne in the country which itself speaks about the role of private sector in the development of the ports, Bongirwar pointed out.
