
Contents of the Chapter:
- Introduction
- Transport Sectors
- Overview of Performance
- Telecommunication
- Energy
- USOF
- Power
- Urban Infrastructure
- Petroleum
- Challenges and Outlook
Introduction
The Twelfth Five Year Plan lays special emphasis on
development of the infrastructure sector including energy, as the availability
of quality infrastructure is important not only for sustaining high growth but
also ensuring that the growth is inclusive. The total investment in the
infrastructure sector during the Twelfth Five Year Plan, estimated at Rs. 56.3
lakh crore (approx. US$1trillion), will be nearly double that made during the
Eleventh Five Year Plan. This step up in investment will be feasible primarily
because of enlarged private-sector participation that is envisaged. Unbundling
of infrastructure projects, public private partnerships (PPP), and more
transparent regulatory mechanisms have induced private investors to increase
their participation in infrastructure sectors. Their share in infrastructure
investment increased from 22 per cent in the Tenth Five Year Plan to 38 per cent
in the Eleventh Plan and is expected to be about 48 per cent during the Twelfth
Five Year Plan. Yet, more than half of the resources required for infrastructure
would need to come from the public sector, from the government, and the
parastatals. This would require not only the creation of the fiscal space but
also use of a rational pricing policy. Further, scaling up private-sector
participation on a sustainable basis will require redefining the contours of
their participation for the development of infrastructure sector in a
transparent and objective manner with a comprehensive regulatory mechanism in
place. This chapter summarizes recent developments in the infrastructure sector,
particularly the energy scenario in India, and the challenges and opportunities
in the context of the targets and milestones envisaged in the Twelfth Five Year
Plan.
OVERVIEW OF PERFORMANCE
Infrastructure projects take a long time to plan and
implement. Delays in the execution of projects not only lead to shortfalls in
achieving targets but widen the availability gaps. Time overruns in the
implementation of projects continue to be one of the main reasons for
underachievement in many infrastructure sectors.
ENERGY
During the Eleventh Five Year Plan, nearly 55,000 MW of new
generation capacity was created, yet there continued to be an overall energy
deficit of 8.7 per cent and peak shortage of 9.0 per cent. Resources currently
allocated to energy supply are not sufficient for narrowing the gap between
energy needs and energy availability. Indeed, this may widen as the economy
moves to a higher growth trajectory. India's success in resolving energy
bottlenecks therefore remains one of the key challenges in achieving the
projected growth outcomes. Further, India's excessive reliance on imported crude
oil makes it imperative to have an optimal energy mix that will allow it to
achieve its long-run goal of sustainable development.
Reserves and potential for energy Generation
The potential for energy generation depends upon the
country's natural resource endowments and the technology to harness them. India
has both non-renewable reserves (coal, lignite, petroleum, and natural gas) and
renewable energy sources (hydro, wind, solar, biomass, and cogeneration
bagasse). As on March 2011, India's estimated coal reserves were about 286
billion tonnes, lignite 41 billion tonnes, crude oil 757 MT, and natural gas
1241 billion cubic metres (BCM). Estimated hydro potential (above 25 MW) is
about 145 gigawatts (GW). The total potential for renewable power generation
from various sources other than large hydro projects was 89,760 MW. The
estimated reserves of non-renewable and the potential from renewable energy
resources change with the research and development of new reserves and the pace
of their exploration.
Energy production
The trend in production of the primary sources of
conventional energy such as coal, lignite, crude petroleum, natural gas, and
electricity shows that in last four decades, i.e. from 1970-1 to 2010-11, the
compound annual growth rate (CAGR) of production of coal, lignite, crude
petroleum, natural gas, and electricity (hydro and nuclear) generation was 5.0
per cent, 6.1 per cent, 4.3 per cent, 9.1 per cent, and 4.0 per cent
respectively. In terms of energy equivalent of all the primary energy sources in
2010-11, the share of coal and lignite, electricity (hydro and nuclear), and
natural gas was 52 per cent, 28 per cent, and 11 per cent respectively.
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