INFRASTRUCTURE
DEFINITION
Infrastructure provides supporting services in the main areas of industrial and agricultural production, domestic and foreign trade and commerce.
These services include roads, railways, ports,airports, dams, power stations, oil andgas pipelines, telecommunication facilities,
the country’s educational system including schools and colleges,health system including hospitals,sanitary system including cleandrinking water facilities
and the monetary system including banks, insurance and other financial institutions.Some of these facilities have a direct impact on the working
of the system of production while others give indirect support by building the social sector of the economy.
Some divide infrastructure into two categories — economic and social.
Infrastructure associated with energy,transportation and communication are included in the former category whereas those related to education,health
and housing are included in the latter.
Infrastructure provides supporting services in the main areas of industrial and agricultural production, domestic and foreign trade and commerce.
These services include roads, railways, ports,airports, dams, power stations, oil andgas pipelines, telecommunication facilities,
the country’s educational system including schools and colleges,health system including hospitals,sanitary system including cleandrinking water facilities
and the monetary system including banks, insurance and other financial institutions.Some of these facilities have a direct impact on the working
of the system of production while others give indirect support by building the social sector of the economy.
Some divide infrastructure into two categories — economic and social.
Infrastructure associated with energy,transportation and communication are included in the former category whereas those related to education,health
and housing are included in the latter.
RELEVANCE OF INFRASTRUCTURE
Infrastructure is the support system onwhich depends the efficient working of a modern industrial economy.
Modern agriculture also largely depends on it for speedy and large-scale transport of seeds,pesticides, fertilisers and the produce by making use of
modern roadways, railways and shipping facilities.
Modern agriculture also has to depend on insurance and banking facilities because of its need to operate on a very large scale.
Infrastructure contributes to economic development of a country both by increasing the productivity of the factors of production and improving
the quality of life of its people.Inadequate infrastructure can have multiple adverse effects on health.Improvements in water supply
and sanitation have a large impact by reducing morbidity (meaning proneness to fall ill) from major waterborne diseases and reducing
the severity of disease when it occurs.
In addition to the obvious linkage between water and sanitation and health,the quality of transport and communication infrastructure can affect
access to health care.
Air pollution and safety hazards connected to transportation also affect morbidity,particularly in densely populated areas.
Modern agriculture also largely depends on it for speedy and large-scale transport of seeds,pesticides, fertilisers and the produce by making use of
modern roadways, railways and shipping facilities.
Modern agriculture also has to depend on insurance and banking facilities because of its need to operate on a very large scale.
Infrastructure contributes to economic development of a country both by increasing the productivity of the factors of production and improving
the quality of life of its people.Inadequate infrastructure can have multiple adverse effects on health.Improvements in water supply
and sanitation have a large impact by reducing morbidity (meaning proneness to fall ill) from major waterborne diseases and reducing
the severity of disease when it occurs.
In addition to the obvious linkage between water and sanitation and health,the quality of transport and communication infrastructure can affect
access to health care.
Air pollution and safety hazards connected to transportation also affect morbidity,particularly in densely populated areas.
THE STATE OF INFRASTRUCTURE ININDIA
It was found that the government’s investment in infrastructure was inadequate.
Today, the private sector by itself and also in joint partnership with the public sector, has started playing a very important role in infrastructure development.
A majority of our people live in rural areas. Despite so much technical progress in the world, rural women are still using bio-fuels such
as crop residues, dung and fuel wood to meet their energy requirement. They walk long distances to fetch fuel, water and other basic needs.
The census2001 shows that in rural India only 56per cent household shave an electricity connection and 43per cent still use kerosene.
About90 per cent of the rural households use bio-fuels for cooking. Tap water availability is limited to only 24 per cent rural households.
About 76 per cent of the population drinks water from open sources such as wells, tanks,ponds, lakes, rivers,canals, etc.
Another study conducted by the NationalSample Survey Organization noted that by 1996, access to improved sanitation in rural areas was only six per cent.
Though it is widely understood that infrastructure is the foundation of development, India is yet to wake upto the call. India invests only 5 per cent
of its GDP on infrastructure, which isfar below that of China and Indonesia.
Some economists have projected that India will become the third biggest economy in the world a few decades from now.
For that to happen, India will have to boost its infrastructure investment.
In any country, as the income rises, the composition of infrastructure requirements changes significantly.
For low-income countries,basic infrastructure services like irrigation, transport and power are more important.
As economies mature and most of their basic consumption demands are met, the share of agriculture in the economy shrinks and more service related infrastructure is required.
This is why the share of power and telecommunication infrastructures greater in high-income countries.
Thus, development of infrastructure and economic development go hand in hand.
Agriculture depends, to a considerable extent, on the adequate expansion and development of irrigation facilities.
Industrial progress depend son the development of power and electricity generation, transport and communication.
Obviously, if proper attention is not paid to the development of infrastructure, it is likely to act as a severe constraint on economic development.
Today, the private sector by itself and also in joint partnership with the public sector, has started playing a very important role in infrastructure development.
A majority of our people live in rural areas. Despite so much technical progress in the world, rural women are still using bio-fuels such
as crop residues, dung and fuel wood to meet their energy requirement. They walk long distances to fetch fuel, water and other basic needs.
The census2001 shows that in rural India only 56per cent household shave an electricity connection and 43per cent still use kerosene.
About90 per cent of the rural households use bio-fuels for cooking. Tap water availability is limited to only 24 per cent rural households.
About 76 per cent of the population drinks water from open sources such as wells, tanks,ponds, lakes, rivers,canals, etc.
Another study conducted by the NationalSample Survey Organization noted that by 1996, access to improved sanitation in rural areas was only six per cent.
Though it is widely understood that infrastructure is the foundation of development, India is yet to wake upto the call. India invests only 5 per cent
of its GDP on infrastructure, which isfar below that of China and Indonesia.
Some economists have projected that India will become the third biggest economy in the world a few decades from now.
For that to happen, India will have to boost its infrastructure investment.
In any country, as the income rises, the composition of infrastructure requirements changes significantly.
For low-income countries,basic infrastructure services like irrigation, transport and power are more important.
As economies mature and most of their basic consumption demands are met, the share of agriculture in the economy shrinks and more service related infrastructure is required.
This is why the share of power and telecommunication infrastructures greater in high-income countries.
Thus, development of infrastructure and economic development go hand in hand.
Agriculture depends, to a considerable extent, on the adequate expansion and development of irrigation facilities.
Industrial progress depend son the development of power and electricity generation, transport and communication.
Obviously, if proper attention is not paid to the development of infrastructure, it is likely to act as a severe constraint on economic development.
ENERGY
Energy is critical aspect of the development process of a nation.
It is, of course, essential for industries.
Now it is used on a large scale in agriculture and related areas like production and transportation of fertilisers, pesticides and farm equipment.
It is required in houses for cooking, household lighting and heating.
It is, of course, essential for industries.
Now it is used on a large scale in agriculture and related areas like production and transportation of fertilisers, pesticides and farm equipment.
It is required in houses for cooking, household lighting and heating.
Sources of Energy
here are commercial and non-commercial sources of energy.
Commercial sources are coal, petroleum and electricity as they are bought and sold.
They account for over 50 per cent of all energy sources consumed in India.
Non-commercial sources of energy are firewood,agricultural waste and dried dung.
These are non-commercial as they are found in nature/forests.
While commercial sources of energy are generally exhaustible (with the exception of hydro power), noncommercial sources are generally renewable.
More than 60 per percent of Indian households depend on traditional sources of energy for meeting their regular cooking and heating needs.
Commercial sources are coal, petroleum and electricity as they are bought and sold.
They account for over 50 per cent of all energy sources consumed in India.
Non-commercial sources of energy are firewood,agricultural waste and dried dung.
These are non-commercial as they are found in nature/forests.
While commercial sources of energy are generally exhaustible (with the exception of hydro power), noncommercial sources are generally renewable.
More than 60 per percent of Indian households depend on traditional sources of energy for meeting their regular cooking and heating needs.
Non-conventionalSources of Energy
Both commercial and noncommercial sources of energy are known as conventional sources of energy.
There are three other sources of energy which are commonly termed as non-conventional sources — solar energy,wind energy and tidal power.
Being a tropical country, India has almost unlimited potential for producing all three types of energy if some appropriate cost effective technologies
that are already available are used. Even cheaper technologies can be developed.
There are three other sources of energy which are commonly termed as non-conventional sources — solar energy,wind energy and tidal power.
Being a tropical country, India has almost unlimited potential for producing all three types of energy if some appropriate cost effective technologies
that are already available are used. Even cheaper technologies can be developed.
Consumption Pattern of Commercial Energy
At present, commercial energy consumption makes up about 65 percent of the total energy consumed in India.
This includes coal with the largest share of 55 per cent, followed by oil at 31 per cent, natural gas at 11per cent and hydro energy at 3 per cent.
Non-commercial energy sources consisting of firewood, cow dung and agricultural wastes account for over30 per cent of the total energy consumption.
The critical feature of India’s energy sector, and its linkages to the economy, is the interdependence crude and petroleum products,
which is likely to grow to more than 100 per cent in the near future.
The transport sector was the largest consumer of commercial energy in1953-54.
However, there has been continuous fall in the share of the transport sector while the share of the industrial sector has been increasing.
The share of oil and gas is highest among all commercial energy consumption.
With the rapid rate of economic growth, there has been corresponding increase in the use of energy.
This includes coal with the largest share of 55 per cent, followed by oil at 31 per cent, natural gas at 11per cent and hydro energy at 3 per cent.
Non-commercial energy sources consisting of firewood, cow dung and agricultural wastes account for over30 per cent of the total energy consumption.
The critical feature of India’s energy sector, and its linkages to the economy, is the interdependence crude and petroleum products,
which is likely to grow to more than 100 per cent in the near future.
The transport sector was the largest consumer of commercial energy in1953-54.
However, there has been continuous fall in the share of the transport sector while the share of the industrial sector has been increasing.
The share of oil and gas is highest among all commercial energy consumption.
With the rapid rate of economic growth, there has been corresponding increase in the use of energy.
Power/Electricity
The most visible form of energy, which is often identified with progress in modern civilization, is power, commonly called electricity;
it is one of the most critical components of infrastructure that determines the economic development of a country.
The growth rate of demand for power is generally higher than the GDP growth rate.
Studies point that in order to have8 per cent GDP growth per annum, power supply needs to grow around 12per cent annually.
Electricity is a secondary form of energy produced from primary energy resources including coal,
hydrocarbons,hydro energy, nuclear energy,renewable energy etc.
Primary energy consumption takes into account the direct and indirect consumption of fuels.
It cannot give a complete picture in respect of the ultimate consumption of energy by consumers.
The secondary sources in India consist of coal, oil,electricity and natural gas.
In India, in 2003-04, thermal sources accounted for almost70 per cent of the power generation capacity.
Hydro, wind and nuclear sources accounted for 28 and 2.4per cent respectively.
India’s energy policy encourages two energy sources — hydel and wind — as they do not rely on fossil fuel and, hence,
avoid carbon emissions. This has resulted in faster growth of electricity produced from these two sources.
Atomic energy is an important source of electric power; it has environmental advantages and is also likely to be economical in the long run.
At present, nuclear energy accounts for only 2.4 per cent of total primary energy consumption, against a global average of 13 per cent.
This is far too low.
it is one of the most critical components of infrastructure that determines the economic development of a country.
The growth rate of demand for power is generally higher than the GDP growth rate.
Studies point that in order to have8 per cent GDP growth per annum, power supply needs to grow around 12per cent annually.
Electricity is a secondary form of energy produced from primary energy resources including coal,
hydrocarbons,hydro energy, nuclear energy,renewable energy etc.
Primary energy consumption takes into account the direct and indirect consumption of fuels.
It cannot give a complete picture in respect of the ultimate consumption of energy by consumers.
The secondary sources in India consist of coal, oil,electricity and natural gas.
In India, in 2003-04, thermal sources accounted for almost70 per cent of the power generation capacity.
Hydro, wind and nuclear sources accounted for 28 and 2.4per cent respectively.
India’s energy policy encourages two energy sources — hydel and wind — as they do not rely on fossil fuel and, hence,
avoid carbon emissions. This has resulted in faster growth of electricity produced from these two sources.
Atomic energy is an important source of electric power; it has environmental advantages and is also likely to be economical in the long run.
At present, nuclear energy accounts for only 2.4 per cent of total primary energy consumption, against a global average of 13 per cent.
This is far too low.
Challenges in the Power Sector
Electricity generated by various power stations is not consumed entirely by ultimate consumers; a part is consumed by power station auxiliaries.
Also, while transmitting power, a portion is lost in transmission.
What we get in our houses, offices and factories is the net availability.
Some of the challenges that India's power sector faces today are
(i) India's installed capacity to generate electricity is not sufficient to feed an annual economic growth of 7 per cent.
In order to meet the growing demand for electricity, between 2000 and 2012,India needs to add 1,00,000 MW of new capacity, whereas, at present,
India is able to add only 20,000 MW a year.
Even the installed capacity is under utilised because plants are not run properly
(ii) State Electricity Boards (SEBs), which distribute electricity, incur losses which exceed Rs 500
Also, while transmitting power, a portion is lost in transmission.
What we get in our houses, offices and factories is the net availability.
Some of the challenges that India's power sector faces today are
(i) India's installed capacity to generate electricity is not sufficient to feed an annual economic growth of 7 per cent.
In order to meet the growing demand for electricity, between 2000 and 2012,India needs to add 1,00,000 MW of new capacity, whereas, at present,
India is able to add only 20,000 MW a year.
Even the installed capacity is under utilised because plants are not run properly
(ii) State Electricity Boards (SEBs), which distribute electricity, incur losses which exceed Rs 500
STAY UPDATED,REST OF THE NOTES AND CHAPTERS WILL BE AVAILABE SOON
Always remember that to be happy, we must not be too concerned with others.
Stay focused and work hard.
Stay focused and work hard.
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