Question : DISMAL INFRASTRUCTURE HURDLES OF GROWTH RATE



(a) whether the pitiable condition of basic infrastructure is the major hurdle in obtaining desired growth rate;

(b) if so, the details thereof along with stance of the Government;

(c) whether as per the entrepreneurial survey of the World Bank, all the domestic industries of India failed to prosper and march ahead due to absence of desired basic infrastructure;

(d) if so, the details thereof along with the reaction of the Government, thereto;

(e) whether the Government has taken a decision to accord priority to the development of basic infrastructure during the Twelfth Five Year Plan; and

(f) if so, the details thereof?

Answer given by the minister


MINISTER OF STATE FOR PLANNING, SCIENCE & TECHNOLOGY AND EARTH SCIENCES (DR. ASHWANI KUMAR)

(a) & (b): The fast growth of the economy in recent years has placed increasing stress on physical infrastructure such as electricity, railways, roads, ports, airports, irrigation, and urban and rural water supply and sanitation, all of which already suffer from a substantial deficit from the past in terms of capacities as well as efficiencies in the delivery of critical infrastructure services. The Plan recognizes that the pattern of inclusive growth of the economy projected for the Eleventh Plan, with GDP growth averaging 9% per year can be achieved only if this infrastructure deficit can be overcome. Accordingly, the Eleventh Five Year Plan has set an ambitious target of increasing the total investment in infrastructure from about 5 per cent of GDP in the Tenth Five Year Plan to 9 per cent of GDP by the terminal year (2011-12) of the Eleventh Plan. This level of investment amounts to Rs. 20,54,205 crore over the Plan period.

(c) & (d): The Enterprise Survey data base 2008 published by the World Bank uses the following nine indicators to measure the reliability and provision of infrastructure services in 125 countries. It does not state that all the domestic industries of India failed to prosper and march ahead due to absence of desired basic infrastructure.

1. Number of Power Outages in a Typical Month

2. If there were outages, Duration of Power Outages (hours)

3. Value Lost Due to Power Outages (% of Sales)

4. If a generator is used, Electricity from Generator (%)

5. Delay in Obtaining an Electrical Connection (days)

6. Average number of Incidents of Water Insufficiency in a Typical Month

7. If there were shortages, Average Duration of the Water Shortage (hours)

8. Delay in Obtaining a Water Connections (days)

9. Delay in Obtaining a Mainline Telephone Connection (days)

(e) & (f): The Twelfth Five Year Plan is yet to be formulated and is expected to give priority and focus on the development of world class infrastructure in the country.