Which of the following is a plan for infrastructure development
Abstract
India’s Eleventh Plan includes strategies and plans for infrastructure development and inclusive growth from 2007 to 2012. The Eleventh Plan’s strategy involves an increase in investment in infrastructure through both the public and private sectors. In the private sector, the strategy is to promote investment directly where feasible or through some form of public-private partnership (PPP). Public investment has been given priority in areas where private participation is unlikely to be forthcoming. Where there is scope for private investment, the aim will be to attract such investment in a transparent manner with clearly defined responsibilities and an open, competitive bidding process. Infrastructure priorities include all-weather roads; round-the-clock availability of power at a stable voltage and frequency; water for irrigation; railways that are not overcrowded, run on time, and do not overcharge for freight; ports with a low turnaround time to reduce costs of imports and exports; airports to handle growing air traffic; air services to connect all parts of the country; and telecommunications and broadband connectivity to provide the benefits of the Internet to people all over the country.
Developing countries are diverse not only in culture, tradition, and social norms, but also in economic development, phase, the strength of governance, assimilation capacity, and ability to mobilize private sector resources (Yashida 2000). Good quality infrastructure is the most critical physical requirement for attaining faster growth in a competitive world and also for ensuring investment in underdeveloped regions. Also, infrastructure development is essential for the attainment of the main development targets of developing countries, namely an improved human development index (a measure of a country’s achievement in ensuring the health, education, and standard of living of its citizens), broad-based participation in development with an equitable distribution of benefits, sustainable economic development, and preservation of land and environment.
(Which of the following is a plan for infrastructure development)
To achieve inclusive growth, infrastructure development must be based on long-term planning based on economically viable projects that are managed using commercial-based practices. The master plan for infrastructure development should be drafted every five years with the long-term strategic objectives of efficiency, competition, clustering, cost-benefit analysis, and both economic and social development objectives (Lim, 2007). The involvement of the private sector must be encouraged, as the private sector often sets the standards for efficiency and benchmarking of quality competitiveness.
India has entered the Eleventh Plan period with an impressive record of economic growth. After a lackluster performance in the Ninth Plan period (1997–02), when the gross domestic product (GDP) grew at only 5.5 percent per annum, the economy accelerated in the Tenth Plan period (2002–07) to record an average growth of 7.7 percent, the highest in any Plan period so far. There was acceleration even within the Tenth Plan period; the growth rate in the last four years of the Plan averaged 8.7 percent, making India one of the fastest-growing economies in the world. If this momentum can be accelerated in the years ahead, it will put India on the path to becoming one of the key players in the world economy over the next two decades.
The Eleventh Plan (Planning Commission, Government of India 2008a) outlines a comprehensive program for infrastructure development, especially in rural areas and in remote and underdeveloped parts of the country, consistent with the requirements of inclusive GDP growth at 9 percent per year. For the purposes of this paper, infrastructure includes the integrated transport system and its components—railways, roads, coastal shipping and ports, and air traffic—as well as telecommunications, power, energy, education and skill development, the health care system, rural and urban development, science and technology, and environmental management and stability. Although public investment has to play a large part, infrastructure development cannot be achieved through public investment alone, as large demands are placed on public sector resources by the health, education, and agriculture sectors.
The Eleventh Plan (Planning Commission, Government of India 2008b) therefore proposes a strategy for infrastructure development that involves a combined response—public sector investment in infrastructure in combination with private sector investment, directly or through some form of public-private partnership (PPP). Public investment has been given priority in meeting infrastructure requirements in irrigation and other general rural sectors (e.g., roads, electrification, water supply and sanitation) and in underdeveloped and remote parts of the country, where private participation is unlikely to be forthcoming. In areas where there is scope for private investment—the integrated transport system, ports, airports, telecommunications, and power and energy—the aim is to attract private investment or investment through PPPs.
Integrated Transport System
The transport system in India comprises a number of distinct modes and services, notably railways, roads and road transport, coastal shipping and ports, and air traffic. Railways and roads are the dominant means of transport, carrying more than 95 percent of the country’s total passenger and freight traffic. Development of the various transport modes needs to occur in an integrated manner that will lead to the realization of an efficient, sustainable, safe, and regionally balanced transportation system with competitive and nondiscriminatory prices that are adequate to support its progressive development.
Railways
Indian Railways is often referred to as the lifeline of the Indian economy because of its predominance in the transportation of bulk freight and long-distance passenger traffic. The railways are an important part of India’s transport infrastructure as they have much higher fuel efficiency than trucks and cars.
Strains and Needs
The key challenge before Indian Railways is to meet the accelerating demand for high-quality services imposed by a vibrant economy and to augment capacity and deploy it optimally through new investment and tariff policies. The Railways need to execute projects and procure assets more rapidly by incorporating best practices in project implementation, production, and procurement of new assets.
Strategies
The government has decided to build dedicated freight corridors in the western and eastern high-density routes involving the construction of 7,201km of new rail tracks along their path. This effort will help decongest the two routes for freight movement and increase the economic potential of remote areas, which will benefit from the reduced cost of transport. It will also provide spinoff benefits in terms of industrial clusters along the new corridors that attract potential investment.
Indian Railways is not expected to be able to generate sufficient funds internally to meet the investment requirements of the Eleventh Plan. The shortfall will be met through PPP projects. Additional investment from the private sector is also expected through investment in manufacturing facilities created as a consequence of partnerships with Indian Railways. Private sector participation in container movement will also be introduced. PPP models identified in the Eleventh Plan include multimodal logistics parks, upgrading of major freight and passenger terminals, construction of roads over bridges (overpasses), the establishment of a railway optical fiber cable network, consolidation of piecemeal parcels into wagons and trainloads, and a program for redevelopment of 22 railway stations into world-class stations.
Roads
A good road network is critical for rapid growth. It provides connectivity to remote areas; provides access to markets, schools, and hospitals; and opens up underdeveloped regions to trade and investment. Roads also play an important role in intermodal transport development, establishing links with airports, railway stations, and ports. India has one of the largest road networks in the world, consisting of 3.314 million km (2.1 million miles) in national highways, state highways, major district roads, and rural roads (i.e., other district roads, and village roads).
Strains and Needs
Despite its importance to the national economy, the road network is grossly inadequate in various respects. It is unable to handle high traffic density and high speeds in many places and has poor riding quality. Besides the speedy implementation of the Golden Quadrilateral (a highway network connecting Delhi, Mumbai, Kolkata, and Chennai) and the North-South and East-West (NS-EW) corridors, addressing the deterioration of large stretches of national highways and other improvements in the road network are accorded high priority in the planning process.
Deficiencies in existing state highways and major district roads result from inadequate lane width in relation to traffic demand; weak pavement and bridges; congested stretches of state highways and major district roads through cities and towns; poor safety features and road geometrics and inadequate formation width in hilly and mountainous regions; missing links and bridges; and railway level crossings requiring urgent replacement with roads over or under bridges. The existing road network is under severe strain from traffic growth, the overloading of vehicles, and inadequate maintenance.
Strategies
The Eleventh Plan envisages a major program of road development covering the national highways. Public and PPP investment will be involved, as well as funding for the completion of rural road connectivity through the PMGSY program, begun in the Tenth Plan to provide reliable road connectivity to all towns with 1,000+ population (500+ in hilly regions) by 2009. An expanded National Highway Development Programme (NHDP) is currently underway that includes widening to four lanes of the Golden Quadrilateral and the NS–EW corridors covering 14,488km; widening of 10,000km of national highways to four or six lanes, connecting state capitals and tourist attractions with the national network; widening of 20,000km of national highways to two lanes with paved shoulders; widening of 6,500km of selected national highways to six lanes; development of 1,000km of expressways; and construction of ring roads around major towns and bypasses, flyovers, and so forth on national highways.
The Eleventh Plan accords high priority to the integrated development of the entire road network. Higher maintenance standards will reduce the frequency of reconstruction of capacity and preserve road assets already created. The strategy focuses on the optimum utilization of existing capacity rather than creating new capacities. Based on lessons learned, conditions conducive to private sector participation have been created in the states. To ensure the safety and free flow of traffic, various steps are being taken, including strengthening the institutional mechanism by setting up the National Road Safety and Traffic Management Board as an apex body and encouraging the appropriate design of roads with interchanges; segregation of slow-moving traffic; and adequate provision of underpasses, overpasses, and service lanes.
Coastal Shipping and Ports
The recent accelerated growth in the Indian economy and trade underscores the increasing criticality of the shipping sector for India, as the bulk of the country’s export-import trade takes place through the maritime route. Coastal shipping is an integral part of the supply chain in the domestic and overseas trade of merchandise. It is a viable, eco-friendly alternative to the already stretched rail and road infrastructure and has a low socioeconomic cost. In addition to its economic advantages, coastal shipping eases the traffic congestion that occurs frequently in road transport. Apart from their substantial contribution to the nation’s the trade and economy, shipping services also play a crucial role as the major source of income for the population in many coastal states.
Strains and Needs
Adequate rail and road connectivity to each port is required, along with the development of infrastructure to encourage emerging areas with promising potential in the coastal shipping sector. Berthing capacities at Indian ports should be developed to address the needs of coastal shipping. Indian ports suffer from inefficiency and congestion as reflected in the high turnaround time of ships. New berths and better-handling facilities are needed at the existing ports, and new ports also need to be developed.
Strategies
To encourage the growth of Indian coastal shipping, during the Eleventh Plan period the government has accorded various concessions and initiatives such as certain relaxations in customs procedures, the benefit of tonnage tax, lower vessel- and cargo-related charges at ports, and provision of dedicated terminals for coastal shipping. The government has put in place a scheme for private participation in major ports, mainly in container terminals, specialized cargo berths, and warehousing and storage facilities on a toll basis.
The Eleventh Plan envisages a major program of expansion in port capacity through PPPs. Many state governments are also taking initiatives to develop their ports through such partnerships.
Air traffic
Strains and Needs
Air transport is the preferred mode of transport, especially for long-distance travel, business travel, access to difficult terrain, and transport of high-value and perishable commodities, mainly on account of the speed of travel and savings of time. With the opening up of domestic skies to private carriers in the last few years, air services have become affordable and are now effectively competing with other modes of transport. Propelled by the growth of the economy and liberalization, the sector experienced unprecedented growth, accelerating particularly in the last five years. However, the development of airports and related facilities has not kept pace.
Strategies
The Eleventh Plan accelerates the program launched in the last two years to upgrade airports and related facilities. Four major airports (Delhi, Mumbai, Hyderabad, and Bangalore) are being developed by private-sector entities. Modernization of Kolkata and Chennai airports and 35 nonmetro and 13 other airports is underway. Some new greenfield airports are also being constructed during the Eleventh Plan. The government Ministry of Civil Aviation provides crucial transport infrastructure in hilly and inaccessible areas. It is therefore proposed to augment airport infrastructure in these areas during the Eleventh Plan, including the development of three greenfield airports, expansion or modification of six existing airports in the northeast region, and modernization and upgrading of the Jammu, Dehradun, Agatti, and Port Blair airports under the scheme for modernization of 35 nonmetro airports.
To sustain the spectacular growth registered by the civil aviation sector in the last few years through the Eleventh Plan, the following initiatives have been taken:
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The standard bidding document, or model concession agreement, is being revised to help attract private investment and facilitate the smooth execution of air transport projects.
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The Airports Economic Regulatory Authority is being established to create a level playing field and healthy competition among major airports (i.e., those handling more than 1.5 million passengers per annum); encourage investment in airport facilities; regulate the tariffs for aeronautical services; protect the reasonable interest of users; and operate efficient, economic, and viable airports.
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Air India and Indian Airlines merged to optimize fleet acquisition, leverage the asset base, strengthen the network, and achieve economy of scale.
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Human resource development is underway to mitigate the acute shortage of qualified personnel, especially pilots and flying instructors. Flying clubs and schools are being encouraged to improve equipment and infrastructure.
Telecommunications
Strains and Needs
It is an irony that the phenomenal growth in the telecom sector has also created a digital divide between urban and rural India in terms of telephone and Internet connections. The Eleventh Plan addresses this divide as an important issue. The Eleventh Plan calls for continued progress toward developing a world-class telecommunications infrastructure with an emphasis on broadening access. The targets for the Plan period are a telecom subscriber base of 600 million and a rural teledensity of 25 percent. Expanding rural telephony is also a priority area of the Plan.
Broadband connectivity plays an important role not only as a medium but also as a means of bringing knowledge and data through networking to less fortunate institutions. To empower the nation and to create a world-class ambiance for education, science, technology, and governance, the country aims toward creating a dynamically configurable national multigigabit backbone core network.
Strategies
It is envisaged during the Eleventh Plan period to connect 5,000 institutions of education, science, and technology to this core to enable collaborative research and development nationally and internationally. Campuses are being empowered technologically through campuswide networks and entry devices to provide access to the knowledge network.
Power
Rapid growth of the economy places a heavy demand on electric power. Reforms to make the power sector more efficient and competitive have been underway for several years. Although there has been some progress, shortage of power and lack of access continue to be major constraints on economic growth.
Strains and Needs
The greatest weakness is on the distribution front, which is entirely the domain of the states. Distribution losses of most of the state power utilities remain as high as 40%, leaving them financially unhealthy and unable to invest adequately in additional generating capacity. For the same reason, these utilities have had only limited success in attracting private investors to set up power plants. The Eleventh Plan seeks to ensure substantial expansion in order to support a growth rate between 9% and 10% per annum. Policies are needed that would ensure the completion of ongoing projects quickly and add new capacity efficiently and at the least cost while emphasizing the exploitation of India’s hydroelectric potential and nuclear capabilities. Renewable energy sources, such as wind power, that can be set up in a short time play a useful role. One of the main challenges is a major step-up in investment in distribution infrastructure and a restructuring of the Accelerated Power Development and Reforms Programme using technological and managerial tools (e.g., smart metering, geographic information system mapping in real-time), monitoring, and accountability at each distribution transformer with a goal set to bring down losses from around 40% to 15% by the end of the Eleventh Plan. Given the high level of such losses at present, it may be difficult for some states to attain these targets. Another challenge is to provide electricity access to all households and connect all below-poverty-line households.
Rapid economic growth cannot be realized if energy is not available at a reasonable cost. Electricity is a crucial energy input in this context. Investment in the distribution has been inadequate in the last few years. The most important problem in the power sector is the continued unviability of the distribution segment reflected in very high transmission and distribution losses, including pilferage, and uneconomic tariffs for some categories of consumers. As a result, the financial position of the distribution companies, which are in the state sector, is severely strained, and this is the cause of inadequate investment by the state sector. Efforts should be made to ensure that the rural electrification infrastructure created does not focus on households alone but is also capable of providing a three-phase supply to operate pump sets for agriculture.
Strategies
The Eleventh Plan aims at making a radical break from past practices in the electricity sector. The main thrust is on improving the efficiency of the distribution system. Rural electrification is an important instrument for bringing about inclusive growth by making electricity available to farmers and in rural areas. The Electricity Act, of 2003 allows full scope for competition within a reasonable regulatory framework. A good start has been made in setting up the regulatory framework and the institutional structure necessary for an efficient market for electricity generation and distribution.
A major new initiative for promoting competition and attracting private investment in the power sector launched in the last three years was the Ultra Mega Power Projects program. Under this program, the government invites proposals on a competitive basis from the public and private sectors to set up nine large power projects of 4,000MW each. Successful completion of this program has the potential to add significantly to the total private sector generation capacity. The public sector will continue to play a dominant role during the Eleventh Plan while progress along the reform path helps clear the roadblock for greater private participation in the medium to long term.
Energy
India is both a major energy producer and consumer. India currently ranks as the world’s seventh largest energy producer, accounting for about 2.49 percent of the world’s total annual energy production. It is also the world’s fifth largest energy consumer, accounting for about 3.45 percent of the world’s total annual energy consumption in 2004.
Strains and Needs
Transport infrastructure is not of much use unless the fuel—gasoline, diesel, and electricity—is available to run scooters, cars, trucks, and trains. Thus, the availability of energy at competitive prices is as important as infrastructure. Availability of and access to energy are catalysts for economic growth. The Eleventh Plan cannot achieve 9 percent growth without a commensurate increase in the availability of energy. About half of the country’s population does not have access to electricity or any other form of commercial energy. Meeting the energy access challenges and ensuring the supply of clean energy to all is essential for empowering individuals, especially women and girls, who have the task of collecting and using noncommercial fuels such as firewood, crop residues, and dung cakes that remain the primary energy source for cooking in more than two-thirds of households. The provision of clean fuels, or at least a wood source within 1km of population centers, and dissemination of technology for use of clean fuels are vital for good health. This effort is essential if growth is to be inclusive.
India is short of most energy resources. Even coal, which is the most abundant resource, may run out in 40to50years. An integrated energy policy to stimulate efficient use and allocation of fuels is therefore important. A key requirement of such a policy is that relative prices of different fuels, their transportation charges, and taxes and subsidies are consistent so that they reflect true social costs. Such a pricing system is envisaged in the Eleventh Plan. Under the Nationalization Act, only public sector units and designated users are permitted to mine coal for their own use. There is a need to increase competition in the sector to improve efficiency and inject new technology.
The pricing policy for petroleum products has posed a major challenge during the Eleventh Plan. The private sector was allowed to market transportation fuels—namely, gasoline, high-speed diesel, and aviation turbine fuel. However, the unprecedented increase in crude oil prices in the international market led to government intervention to moderate the prices of petroleum products.
Strategies
The Eleventh Plan will carry forward the process initiated in the last few years for encouraging other public sector units and private users to mine coal. At the same time, coal is competitively priced. Sale of at least 20 percent of coal through e-auction, rail freight rationalization, imports without duty, and pricing of coal based on its gross calorific value is promoted. New technology to extract more oil from known or depleted reserves is also encouraged.
The measures to be taken in Eleventh Plan for improving energy efficiency include energy auditing of large energy consumers, benchmarking with more efficient units, labeling and rating energy-consuming equipment, forcing higher efficiency standards in major energy-consuming sectors such as automobiles, and promoting energy-efficient buildings. Labeling will help consumers buy energy-efficient products, and procurement policies will be changed so that government departments buy equipment based on life cycle costs.
Education and Skill Development
Strains and Needs
Education and skill development receive high priority both to meet the needs of a growing economy and to promote social equality by empowering groups who are currently excluded from the growth process because of unequal access to education and skills. Public (both national and state) expenditures on education are only about 3.6 percent of GDP. The dropout rate has remained high. The gross enrollment ratio (GER) for higher education (percentage of the 18–23 age group enrolled in a higher education institution) currently is about 11 percent; it is 25 percent in many other developing countries. China increased its GER in higher education from 10 percent in 1998 to 21 percent in 2005. Although the best of India’s institutions of higher education compare well internationally, a large number experience serious quality problems.
Strategies
The National Common Minimum Programme (NCMP) set a target of raising public expenditure on education to 6 percent of GDP. The Eleventh Plan aims at increasing the GER for higher education to 15 percent by the end of the Plan. This increase is necessary to meet not only the needs of a growing economy but also the aspirations of young people who see education as an essential requirement for advancement. Along with the expansion, improvements in quality are envisaged in the Eleventh Plan, including upgrading facilities and improved methods of teaching. Other initiatives include
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Establishment of 30 new central universities, one in each of the 16 states that do not have a public university at present and 14 others in different parts of the country, that will cover a wider range of subjects, especially engineering and medicine.
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Establishment of eight Indian Institutes of Technology, seven Indian Institutes of Management, and five Indian Institutes of Science Education and Research.
Because the establishment of world-class institutions involves considerable expenditure on creating facilities, the scope for public-private participation in setting up these universities is carefully being explored. The Eleventh Plan also seeks to reposition Employment Exchanges (registries for government job seekers) as outreach points for information on employment and skill development and to encourage them to function as career counseling centers.
Health Care System
Strains and Needs
Good health contributes to economic growth. Meeting the health needs of the population requires a comprehensive and sustained approach. Health services should be affordable and of reasonable quality.
Strategies
The Eleventh Plan plans to strengthen all aspects of the health care system—preventive, promotive, curative, palliative, and rehabilitative. Emphasis is also placed on access to clean drinking water, sanitation, diet, hygiene, and feeding practices, which significantly affect the health status of the population. The goal is to raise public health spending to at least 2 percent of GDP during the Eleventh Plan period. Both the national and state governments aim to augment resources devoted to health. They must also build absorptive capacity for these enhanced allocations and develop innovative health financing mechanisms, including health insurance for the poor in which the premium for basic coverage will be borne by national and state governments. The Eleventh Plan aims to establish 60 medical colleges and 225 new nursing and other colleges in states through PPPs. Incentives linking payment to performance will also be introduced in the public health system.
The Eleventh Plan also focuses on developing human resources not just to meet the needs of the health care system, but also to increase employment opportunities and make India a hub for health tourism. This effort will involve reintroducing licentiate courses in medicine and establishing medical, nursing, dental, and paramedical colleges in underserved areas. Good governance, transparency, and accountability in the delivery of health nutrition and related services are ensured through the involvement of local self-governments and community and civil society groups.
Rural Development, Poverty Alleviation, and Urban Infrastructure Development
Strains and Needs
Accelerating agricultural development, with emphasis on watershed development in dryland areas and a special focus on small farmers, will increase employment and help reduce poverty in rural areas. Because the scope for employment opportunities in rural areas is limited, accelerated growth as envisaged in the Eleventh Plan is expected to result in more rapid migration of rural populations to urban centers. India is relatively less urbanized than other countries at the same level of development, and the state of urban infrastructure, especially the availability of water and sewage treatment facilities, is much lower than it should be. Urban transport infrastructure also leaves much to be desired.
Strategies
To deal with migration to the cities, the Eleventh Plan frames a two-pronged action plan. First, the quality of infrastructure in existing cities is being upgraded to provide improved municipal services to larger numbers of people, and second, new suburban townships are planned in the vicinity of existing cities as satellites or counter-magnets to reduce and redistribute the influx of population. The Jawaharlal Nehru National Urban Renewal Mission, which commenced in the Tenth Plan, continues to be the main vehicle for raising the level of infrastructure and utilities in the existing cities. The aim of the Mission is to create economically productive, efficient, equitable, and responsive cities with a focus on improving and augmenting the economic and social infrastructure; ensuring basic services to the urban poor, including security of tenure at affordable prices for tenants; initiating wide-ranging urban sector reforms whose primary aim will be to eliminate legal, institutional, and financial constraints that have impeded investment in urban infrastructure and services; and strengthening municipal governments.
The development of satellite townships will be left largely to the private sector. However, to facilitate and induce such development, the state governments are to undertake the provision of trunk (shared) infrastructure.
The National Capital Region Planning Board is tasked with planning the process of infrastructure development for the areas around Delhi. Urban poverty alleviation and slum development will continue to be an important component of the Eleventh Plan.
Science and Technology
Strains and Needs
Science and technology are important drivers of economic growth and development in the contemporary world. The present juncture is critical for Indian science, and major positive steps in this area will help the country to achieve sustained and rapid growth in the future.
Strategies
Under the Eleventh Plan, discipline-specific education programs will be launched—particularly in strategic sectors like space science and nuclear science—to capture talent at the higher secondary (“plus two”) level with a view to developing quality human resources in these sectors. To promote basic research, a two-pronged strategy will be adopted consisting of expanding and strengthening the science and technology base in the universities and providing support to established centers of advanced research through competitive research funding for major and internationally competitive research programs. An effort will be also made under the Eleventh Plan to ensure that the wide pool of experts in publicly funded research institutions also participates actively as adjunct faculty in the universities and newly created academic and research institutions.
Environmental Management and Sustainability
Strains and Needs
Translating the vision of environmental sustainability will require that environmental concerns are given a very high priority in development planning at all levels. Environmental management (including municipal solid waste and sewage management) is a crucial component of urban planning and has been sadly neglected in the past. There is a need to strongly enforce the mechanisms for dealing with industrial and vehicular pollution. The prospect of climate change presents a serious threat to India’s development over the longer term; available scientific evidence suggests that India will be one of the countries severely affected by climate change. The Himalayan glaciers are already receding, and the trend could intensify. There is likely to be an increase in mean temperatures, which would have adverse effects on food grain production with the present level of technology. The monsoon would be accompanied by a greater frequency of extreme events. Development and promotion of low-carbon and highly energy-efficient technologies with reasonable costs should be a priority.
Strategies
A national action plan on climate change is being prepared. The government’s effort will be toward encouraging energy and carbon efficiency in the public and private sectors and internalizing climate change concerns in development planning.
Sewage treatment is given focused attention in the Eleventh Plan. Recycling of the treated water for appropriate purposes has been incentivized. Efforts are made to integrate sewage treatment with water conservation, and local bodies are provided with financial support for the purpose.
The River Conservation Programme has been strengthened to ensure that river flows are adequate to provide water of at least bathing quality. Action plans for the Yamuna and other important rivers are being implemented.
Summary
A key feature of the inclusive growth strategy in the Eleventh Plan is that the growth of GDP should not be treated as an end in itself, but only as a means toward inclusive growth. The Eleventh Plan outlines a comprehensive strategy for the development of both rural and urban infrastructure, defined to include electric power, roads, railways, ports, airports, telecommunications, irrigation, drinking water, sanitation, storage, and warehousing.
The strategy for infrastructure development has been designed to rely as much as possible on private sector investment through various forms of PPP. Both the central government and the states have seen varying degrees of success in attracting private investment in areas such as power generation, telecommunications, roads, railways, airports, and ports.
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