It is not that India has not progressed at all where growth in infrastructure services is concerned. There has been a distinctive improvement in the core infrastructure performance. Six core infrastructure sectors of power, coal, steel crude oil, cement and refinery which have a combined weight of 26.7 per cent in IIP have recorded an average growth of 8.8 per cent in April-December 1999 compared to a mere 2. 8 per cent in the corresponding period last year. A look at specific sectors will show that with the government relaxing guidelines there has been an improvement in performance by these sectors .

Power
The government has announced a mega power policy and restructuring of State Electricity Boards (SEBs) is to be encouraged. New distribution systems are to get fiscal benefits. Power generation in 1998-99 at 448.4 billion kwh was a record growth of 6.6 per cent over 1997-98. The total generation of power in April-November 1999 at 313.8 billion kwh was a record growth of 7. 6 per cent over generation during April-November 1998. Thermal and nuclear generation grew by 9. 9 per cent and 12. 8 per cent respectively, while hydro generation decreased by 1. 9 per cent. But efficiency of this sector could be further enhanced if the low plant load factor of thermal plants, heavy transmission and distribution loses suffered by SEBs and other operational and technical inefficiencies are improved upon and full benefits derived from existing capacities.

The installed capacity of power generation as on March 31, 1999 was 93,249. 6 mw and capacity addition for April-October 1999 was only 1958 mw falling short of the set target of 2,308 mw. Today the power situation in the country can be improved on if the financial health and operational performance of SEBs is improved. Unless and until all the 16 SEBs do not achieve a positive three per cent and above rate of return the managerial and financial inefficiencies in the state power sector will continue. Poor commercial and financial performance of SEBs is a major hurdle for them to tap financial resource. Fall back in repayment of dues is also resulting in a shortfall in overall investments to the power sector.

Roads
To enhance the investment funds for expanding the road network, the government came out with a strategic plan wherein in the latest budget a new cess of Rs 1 per litre on HSD was imposed to generate funds to be transferred to the Central Road fund. A major portion of this fund will be used for the development and maintenance of state roads and national highways. A model Concession Agreement for BOT road projects of more than Rs 100 crore and less than Rs 100 crore has also been finalised.

India has a large roads network comprising more than 3 million km of road making it one of the largest in the world. However, quality of roads is poor and cannot meet the needs of fast moving transportation. National Highways that are the prime arterial route span about 52,010 km throughout the country and cater to about 40 per cent of the total road transport demand. Fund allocations as a per percentage of total central plan outlay declined to Rs 2,163 crore for 1999-2000 as compared to Rs 2,230 crore for 1998-99.

To speed up the process of roads development a National Highways Authority (NHAI) was constituted under the National Highways Authority of India Act 1988 and was made operational in February 1995. It was entrusted with the development of the five prestigious national highways (NH). Subsequently, it also took charge of some BOT projects on NHs. NHAI has been mandated to implement the National Highway Development Programme (NHDP) which constitutes 4/6 laning of the golden quadrilateral (GQ) connecting Delhi - Mumbai - Chennai - Calcutta - Delhi and North -South and East West corridors connecting Kashmir to Kanyakumari and Silchar to Saurashtra respectively, and Salem to Cochin. A taskforce headed by deputy chairman Planning Commission will see completion of this programme 2009. The total length to be upgraded under NHDP is 13,252 km approximately and the total fund requirement will be around Rs 54,000 crore. Work on the GQ has already commenced on the North-South and East-West corridors. 504 km on GQ hasalready been four laned and construction work is in progress on 716 km. To fund the huge requirements, the cess levied on petrol and HSD will be diverted towards roads development and maintenance. A 50 per cent levy on diesel will be used to support rural connectivity and balance 50 per cent of this levy along with the duty of Rs 1 per litre of petrol effected from June 2, ‘98 will be transferred to the central road fund. 30 per cent of this fund will be reserved for development schemes on state roads and the balance for the development and maintenance of NH, for construction of rail/road overbridges and other railway safety works at unmanned railway crossings. The cess on petrol and HSD is likely to yield Rs 5,000 crore per year as per current price levels. Today a detailed exercise on various allocations between different sectors is being carried out and Rs 1,900 crore has been made available to the ministry of surface transport during the current year for special repairs and NHDP/GQ. Under the ModelConcessional Agreement under BOT todate 20 projects involving an investment of around Rs 1,000 crore have been taken.

Ports
India has a 750 km coastline. There are 11 ports and 148 minor operable ports along the coastline. The government realising the growing importance of external trade has allowed private participation in this sector on a BOT basis. Minor ports have been opened up for upgradation and maintenance for private players on a BOOT or lease basis. Major ports account for almost 90 per cent of India’s trade. Minor ports are basically used as connectivity points . A new major port at Ennore 25 kms north of Chennai is being constructed with the help of an ADB loan. At a revised cost of Rs 927 crore, this port will have a capacity to handle 16 million tonnes of coal. During 1998-99 there was an overall slump in trade and major ports handled around 251. 7 million tonnes of cargo almost equal that of 1997-98. 83 per cent of the cargo was by way of dry and liquid bulk while the remaining was container traffic. When one compares Indian ports with the efficient ports of the Asian region, they fail where productivity of labourand equipment is concerned. But last year, productivity indicators of pre-berthing detention, average turnaround time and output per ship berth witnessed marked improvement. Today the existing port infrastructure is insufficient to handle trade flows effectively and a further creation of capacity is being planned according to projected traffic requirements. The ninth plan has envisaged an outlay of Rs 9,428 crore and a resources gap of Rs 8,000 crore will be bridged by private sector participation. So far, 12 private sector proposals aggregating 48. 50 million tonnes capacity and involving an estimated investment of Rs 3,676 crore have been approved. The Traffic Authority for Major Ports and Maritime States Development Council have been formed to look after ports development. An empowered committee on Environment Clearances has also been constituted to look into environment clearance guidelines for balanced development and environment protection.

Telecommunication
The government has granted industry status to telecommunication. A new telecom policy has been announced wherein domestic calls are to be opened up, the Department of Telecom (DoT) is to be corporatised by 2001 and MTNL will foray into cellular operations. Trai has been constituted through an ordinance and has made it mandatory for the government to seek its recommendations in matters dealing with the need and timing for introduction of new service providers and terms and conditions of licence to a service provider.

To make communication access easy across the country, the government has set forth specific targets such as making available phones demand by 2002, encourage rural telecom and increase rural tele density to 4 by 2010 from the present 0. 4 and village to be covered by 2002 and internet access to all headquarters by 2002 and existing licence holders of basic and value-added services allowed to switchover to a revenue sharing agreement. To facilitate rapid development of the telecom network a separate Department of Telecom Services was set up in October 1999. Do T will look into the implementation of treaties and agreements with other countries, policy matters, licencing, coordination, R&D,private investment and administration of laws.

The telecommunication network including that of MTNL comprises 25,394 telephone exchanges with a capacity of 272.2 lakh lines and 226. 3 lakh working connections as on 1999 end. India operates one of the largest telecom networks in Asia. The country’s switching capacity increased by around 22. 5 per cent in 1998-99 and new connections added were 38 lakhs.

In order to provide basic telephony companies registered in India are being licenced to plan, install, operate and maintain the basic services. Six companies have signed licence agreements with the government for providing basic telephony in AP, Gujarat, Maharashtra, MP Rajasthan and Punjab. The National Telephone Policy 1994 has the envisaged objective of one PCO for every 500 person in urban areas. For 1999-2000 the government has proposed to provide 45,000 village public telephones higher than the previous year’s target of 37,000. Today there are about 13.5 lakh cellular customers in the country and four metros and 18 telecom circles have been cellular connected.