CHAPTER 6: INDIA’S INFRASTRUCTURE DEVELOPMENT & CAPITAL EXPENDITURE from Vajirao & Reddy Institute

CHAPTER 6: INDIA’S INFRASTRUCTURE DEVELOPMENT & CAPITAL EXPENDITURE

• Requirement: Substantial infrastructure investment over the next decade.
• Estimates: Current spending needs to be increased.
• CapEx Increase: From FY20 to FY24, the Union Government increased capital expenditure (CapEx) on major infrastructure sectors by an average of 38.8%.

• Priority Sectors: Atomic energy, civil aviation, telecommunications, renewable energy, power, roads, rural development, ports, housing & urban affairs, and railways.

• National Infrastructure Pipeline (NIP):
  • Target: ?111 lakh crore investment from FY20 to FY25.
  • Projects: Over 9,766 projects across 37 sub-sectors.
  • Tracking: India Investment Grid (NIP-Project Monitoring Group) portal.

• National Monetisation Pipeline (NMP):
  • Launch: August 2021.
  • Target: Monetisation of core infrastructure assets worth ?6.0 lakh crore from FY22 to FY25.

• FY22 to FY24: Target of ?4.30 lakh crore, achieved ?3.86 lakh crore.
• FY25 Target: ?1.91 lakh crore.
• Top-Performing Sectors: Roads, power, coal, and mines.

• Gap: Significant gap in infrastructure development despite increased CapEx.
• Goal: Viksit Bharat (Developed India) requires innovative financing and greater private sector participation.
• Impact of Elections: Q1FY25 CapEx affected by general elections and model code of conduct.
• Weather: Unusual weather patterns slowed down progress.

• Uptick: CapEx saw an uptick from July-November 2024.
• Budget Utilization: Ministries used 60% of their budgeted CapEx between April to November 2024.

• Innovative Frameworks: Attract private investment and speed up infrastructure projects.
• Key Initiatives: NIP and NMP to streamline infrastructure development and address financing challenges.

• Railway Network Expansion:
  • FY24: 2,282 km commissioned.
  • FY25 (April-November): 2,031 km commissioned.
• Rolling Stock Production:
  • Wagons:
    • FY24 (April-November): 968 wagons produced.
    • FY25 (April-November): 1,042 wagons produced.

• Locomotives:
  • FY24 (April-November): 220 locomotives produced.
  • FY25 (April-November): 261 locomotives produced.
• Vande Bharat Trains:
  • Introduction: 17 new pairs introduced between April and October 2024.
  • Coaches: 228 Vande Bharat coaches produced during this period.
  • Total: 68 pairs in service by October 2024, up from 2 pairs in 2018-22.
  • Coaches: 900 Vande Bharat coaches produced by October 2024, up from 32 units in 2018-22.

• Mumbai-Ahmedabad High-Speed Rail:
  • Sanctioned: December 2015.
  • Support: Japan.
  • Cost: Revised cost of ?1.08 lakh crore.
  • Progress: 47.17% physical progress with an expenditure of ?67,486 crore as of October 2024.
• Dedicated Freight Corridors (DFCs):
  • Progress: 2,741 km commissioned out of 2,843 km (96.4% completion) as of November 2024.
  • Benefits: Improved logistics by allowing higher freight volumes without passenger train interference.

• Amrit Bharat Station Scheme:
  • Identified: 1,337 stations for redevelopment.
  • Progress: Work started in 1,197 stations as of October 2024.
• Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs):
  • Started: 50 PMBJKs at railway stations for affordable healthcare services.
  • Inaugurated: Additional 18 PMBJKs in November 2024.
• Food and Catering Services:
  • Policy: New mobile catering policy introduced on November 14, 2023.
  • Base Kitchens: 557 Base Kitchens servicing 468 pairs of trains.

• One Station One Product Scheme:
  • Operational: At 1,900 stations with 2,163 outlets.
  • Beneficiaries: 79,380 local artisans.
• Passenger Facilities:
  • Train Indication Boards: Installed at 1,351 stations.
  • Coach Guidance Systems: Installed at 866 stations.
  • Wi-Fi: Available at 6,112 stations.
• Signalling System Improvements:
  • Elimination of Mechanical Signalling:
    • Upgraded: 25 out of 62 pending stations to electrical/electronic interlocking systems by FY25.
  • Kavach System:
    • Investment: ?1,547 crore invested till November 2024.
  • Electronic Interlocking Systems (EI):
    • Upgraded: 227 stations in FY25, bringing the total coverage to 3,576 stations.

• Automatic Block Signalling (ABS):
  • Completed: 720 route kilometres in FY25, increasing the total coverage to 4,906 km.

• Total Road Network:
  • Length: 63.4 lakh km.
  • National Highway (NH) Network: 146,195 km.
  • Freight Traffic: NH network carries 40% of overall road freight traffic, despite constituting only 2% of the total road network.
• National Highway Construction:
  • FY24 (April-Dec): 6,215 km constructed.
  • FY25 (April-Dec): 5,853 km constructed.
• Shift to Corridor-based Approach:
  • Period: From 2014 to 2024.
  • Increase: Highway length increased from 91,287 km to 1.46 lakh km.

• National Industrial Corridor Development Programme:
  • Aim: Create advanced industrial cities in India.
  • Focus Sectors: Electronics, semiconductors, renewables, automobiles, pharmaceuticals, textiles, and apparel.
  • Phase 1:
    • Allocated: 383 plots (3,788 acres) across four cities: Dholera (Gujarat), Shendra-Bidkin (Maharashtra), Greater Noida (Uttar Pradesh), and Vikram Udyogpuri (Madhya Pradesh).
    • Work Started: In four other cities: Tumakuru (Karnataka), Krishnapatnam (Andhra Pradesh), Nangal Choudhary (Haryana), and Dadri (Uttar Pradesh).
  • Approved: 12 new industrial cities incorporating Industry 4.0 standards.

• Bharatmala Pariyojana:
  • Aim: Develop 34,800 km of national highways.
  • Progress: 76% awarded, 18,926 km constructed by 2024.
• Char Dham Mahamarg Pariyojna:
  • Aim: Connect all four dhams with 825 km of highways.
  • Progress: 620 km completed by 2024.
• National High-Speed Corridors (HSCs):
  • Expansion: From 93 km in 2014 to 2,474 km in 2024.
• 4-lane and above National Highways:
  • Increase: From 18,300 km in 2014 to 45,900 km by 2024 (excluding HSCs).

• Initiatives:
  • Advanced Traffic Management: Implemented across 4,000 km of national highways.
  • Multi-Modal Logistics Parks (MMLPs): Six MMLPs awarded in cities like Chennai, Indore, Nagpur, Jalna, Jogighopa, and Bangalore by December 2024.
  • National Highway Maintenance Policy: Includes Performance-Based Maintenance Contracts (PBMC) and Short-Term Maintenance Contracts (STMC).
  • Vehicle Scrapping Policy: 82 Registered Vehicle Scrapping Facilities (RVSFs) operational, having scrapped about 1.62 lakh vehicles. An additional 65 RVSFs under construction.
  • Ropeway Projects: 15 projects in progress, including those in Varanasi, Dhosi Hill, Bijli Mahadev, and Ujjain.