With the economy growing at 7 - 8 %, it is imperative that due care is given to Infrastructure to stimulate growth and to give multiplier effect. It was widely believed that the state can provide the best infrastructure were given a go by and now with liberalization, we see a large no. of projects with private sector taking a lead. To sustain and accelerate economic growth of 8 % and above, continuous investment in infrastructure has to take place. Sweeping reforms have taken place to attract private sector investment and foreign direct investment.

Pipeline Distribution 

With the costlier imports of around 69% India, still resort to movement of petroleum products by road, which is 15 to 20 times costlier than pipe transportation. The loss due to this mode of transportation is also put at 3 to 5 times higher. Petroleum products are largely transported to Installations, depots, terminals by road from ports. With the privatization, more projects are in the offing from private ports, jetties etc.,

 Airports

With the Indian economy all set to integrate with global economy, it is imperative that we upgrade and modernize our outdated aviation infrastructure. By the dawn of this decade, air travel is recognized as a mere mode of transport than luxury and the importance of its role in trade and tourism. A better airport infrastructure will facilitate indirect foreign investment. At present, there are 449 airports/air strips in the country which serves over the Indian airspace and adjoining ocean areas.

Recently, foreign equity participation 74 % with automatic approvals, and upto 100% with special permission is one of the key features that may prop up more projects in this sector. In the policies announced, the Government of India has also recognized potential to earn more revenue from non-aeronautical sources on par with global scale to increase the finances of many ailing airport finances.

Recent Inititatives

The Government of India has likely to include 35 non metro airports for private participation according to recent reports from ET. This radical move against the backdrop strikes of AAI staff, support from left and UPA is a welcome relief for the sagging sector. This move comes as a surprise. Though, we are yet to see the fruits of recent privatasation of airports of Mumbai and Delhi. This may help the govt. decision for queued up privataisation of Kolkatta and Chennai airports. Bangalore and Hyderabad have been completed but tanlges remain with user-development fees s or airport-development fees for to plug funding gaps.

Railways

It is the backbone of our transport infrastructure and it has an extensive route length of more than 62,800 kms moving 1.36 crore passenger and

and 12 lakh tonnes cargo. However, Indian Railways faces serious problems with its competitiveness, lack of operational facility, high costs, high pension payments and other social costs makes the railways finance unhealthier. To overcome these plaguing problems, Railways have launched 'Own Your Wagon Scheme', Build, Own, Lease, Transfer schemes to bolster private participation. Also the recent initiatives allow connectivity to ports also comes with private participation. However, in recent years, Railways have shown greater business acumen by adopting differential price schemes to come out of red and shown a positive trend.