The Survey notes that the initial response of the private sector has been satisfactory with as many as 17 road projects involving a sum of Rs 835.5 crore in various stages of implementation.In the rail sector, market borrowings have increased in order to meet growing investment needs. As a result, lease charges being paid by the Indian Railways have risen to Rs 1,929 crore in 1997-98. "Increased market borrowings have thus constrained the Railways' ability to mobilise internal resources and has induced it to reprioritise some of the ongoing development projects."

The Survey says that efforts are being made to contain cross-subsidisation by freight business in order to make it more customer-friendly and growth-oriented. The growth in goods traffic earnings turned negative duringApril-December, 1998. One of the constraints to private investment in infrastructure has been the relative paucity of market mechanisms "Infrastructure being a non-tradable commodity, revenue streams of most projects are incapable of supporting exchange risk," the Survey notes.Private financing of infrastructure projects will require a major domestic focus. "The all-India financial institutions and banks have been constrained by the time profile of their liabilities while extending debt capital of longer maturities. To mobilise long-term finance, domestic capital markets will have to be reformed so as to create a vibrant debt market."

Besides private companies, municipal corporations and other urban development bodies will also have to issue bonds to fund their requirements. "The role of specialised financial institutions like IDFC assumes significance in this respect."

In the port sector, the Indian ports continue to show lower productivity in comparison to the Asian region in terms of labour andequipment productivity norms.

Five mega port projects, costing a total of Rs 1,800 crore, are underway with external assistance. "The government's efforts will be supplemented by investment from the private sector so that the projected port handling capacity of 424 mt is fully met by the end of Nonth Plan period."

Private sector participation in ports will help to bridge Rs 8,000-crore resource gap during the Ninth Plan period. This constitutes 50 per cent of the total investment envisaged in the port sector over the next five years.During April-November 1998, 162.2 mt of cargo was handled by major ports registering a 0.1 per cent growth compared to 162 mt in the corresponding period of 1997-98. The slow growth was on account of fall in the export of iron ore and the decline in the import of fertilisers and its raw material.