India's Infrastructure Development and Capital Expenditure

Infrastructure investment raises productive capacity by improving transport, digital connectivity, water, sanitation, housing, tourism and space systems. This consolidated Economic Survey chapter explains India's public capital expenditure, major initiatives, outcomes and implementation challenges.

Key Developments in India's Digital Connectivity:

• Telecommunications Growth:
  • 5G Rollout:
    • Coverage: Launched in all states and union territories, available in 779 out of 783 districts as of October 31, 2024.
    • Infrastructure: Over 4.6 lakh 5G Base Transceiver Stations (BTSs) installed across the country.
  • Expanding Mobile Coverage:
    • Approved Project: Provide 4G services to 24,680 uncovered villages in remote areas and upgrade 6,279 villages from 2G/3G networks to 4G.
    • Progress: By December 2024, 7,815 sites covering 10,706 villages were commissioned.

EFFORTS FOR CONNECTIVITY IN REMOTE AREAS

• Bharat Net Project:
  • Aim: Provide broadband connectivity to all Gram Panchayats and villages.
  • Progress: 6.92 lakh km of Optical Fibre Cable (OFC) laid, and 2.14 lakh Gram Panchayats service-ready as of December 2024.
• Mobile Coverage in North-East and Border Areas:
  • Coverage: 1,358 mobile service sites covering uncovered villages and highways.
  • Arunachal Pradesh and Assam: 671 towers covering 1,178 villages.
  • Meghalaya: 433 towers covering 622 villages and 3 highways.
• Telecom Development in Islands:
  • Andaman & Nicobar Islands: Completed submarine OFC connectivity with 205 Gbps bandwidth and increased satellite bandwidth.
  • Lakshadweep Islands: Submarine OFC project (1,869 km) commissioned in January 2024, enabling 5G and FTTH services.
• Mobile Services in Remote Villages:
  • Border Villages Scheme: 319 villages covered with 4G.
  • LWE-Phase I & II: Upgraded 297 towers to 4G, and 1,106 towers commissioned under Phase II, covering 1,162 locations.
• Aspirational Districts Scheme:
  • Efforts: Cover villages in underserved areas.
  • 502-Village Scheme: 215 towers covering 251 villages across 112 districts.
  • 7,287-Village Scheme: 2,497 sites covering 3,804 villages in 5 states.
• Information Technology (IT) Initiatives:
  • GI Cloud (MeghRaj):
    • Aim: Deliver ICT services through cloud computing.
    • Support: As of November 30, 2024, the National Informatics Centre supports 1,917 applications on its cloud.
  • Digital Bharat Nidhi (DBN):
    • Renamed: Universal Service Obligation Fund renamed Digital Bharat Nidhi (DBN) in August 2024.
    • Support: Continues to support telecom services, mobile services, broadband connectivity, and infrastructure in rural and remote areas.

KEY DEVELOPMENTS IN RURAL INFRASTRUCTURE

• Rural Drinking Water and Sanitation:
  • Jal Jeevan Mission (JJM):
    • Objective: Provide reliable access to safe piped drinking water to rural households, ensuring long-term water security.
    • Progress:
      • Launch: August 2019 with 3.23 crore (17%) rural households having tap water connections.
      • Current: Over 15.30 crore (79.1%) out of approximately 19.34 crore rural households by November 26, 2024.
    • Achievements:
      • States and UTs with 100% Coverage: Arunachal Pradesh, Goa, Haryana, Himachal Pradesh, Gujarat, Punjab, Telangana, Mizoram, Andaman & Nicobar Islands, Dadra Nagar Haveli & Daman Diu, Puducherry.
      • Water Quality Laboratories: 2,160 laboratories, with 1,570 accredited by the National Accreditation Board for Testing and Calibration Laboratories.

IMPACT OF JAL JEEVAN MISSION

• Safe Drinking Water: Provided to 69.23 lakh households in quality-affected areas, including 23 lakh in arsenic-affected areas and 11.43 lakh in fluoride-affected areas.
• Community Water Purification Plants (CWPPs): 618 installed, with 573 in arsenic and fluoride-affected areas.

SWACHH BHARAT MISSION (GRAMEEN)

• Phase I: Achieved open defecation-free (ODF) status in rural areas.
• Phase II (2020-2025): Aims to convert ODF villages into ODF Plus villages.
• ODF Plus Progress:
  • Categorization: Aspiring, Rising, and Model.
  • Goal: Ensure all villages become ODF Plus Model, sustaining ODF status, proper waste management, and visual cleanliness.
• Recent Progress: By November 2024, 1.92 lakh villages incrementally declared ODF Plus under the Model category, bringing the total to 3.64 lakh villages.

KEY DEVELOPMENTS IN URBAN INFRASTRUCTURE

• Swachh Bharat Mission-Urban (SBM-U):
  • SBM-U 2.0:
    • Launch: 2021.
    • Focus: Create garbage-free cities by integrating waste management and sanitation practices, aligning with sustainability and circular economy principles.
  • Progress:
    • Individual Household Latrines: 63.7 lakh units constructed.
    • Community and Public Toilets: 6.4 lakh seats constructed.
    • Door-to-Door Solid Waste Collection: Achieved in 93,756 wards.
    • Waste Processing: Significant progress in processing waste generated across cities.

IMPACT

• Toilet Access: As per the 78th NSS Report, 97% of households in urban areas have access to toilets.
• ODF Certification:
  • ODF: 4,576 ULBs certified (complete access to toilets).
  • ODF+: 3,913 ULBs certified (clean, hygienic, and functional toilets).
  • ODF++: 1,429 ULBs certified (safe faecal sludge management).
  • Water+: 64 ULBs achieved status, ensuring proper treatment and reuse of wastewater.
• ICT-enabled Governance:
  • Swachhata App: 2.08 crore users, resolving 2.39 crore complaints out of 2.55 crore reported.
  • Google Toilet Locator: Mapped 67,407 toilets across 3,326 cities, enhancing accessibility.

URBAN HOUSING

• Pradhan Mantri Awas Yojana – Urban (PMAY-U):
  • Launch: 2015.
  • Aim: Provide permanent housing in urban areas.
  • Achievements (as of November 25, 2024):
    • Sanctioned: 1.18 crore houses.
    • Grounded: 1.14 crore houses.
    • Completed: 89 lakh houses.
  • PMAY-U 2.0:
    • Launch: September 2024.
    • Aim: Assist an additional 1 crore households.
    • Progress: 6 lakh houses approved in FY25.

URBAN TRANSPORT

• Metro and Rapid Rail Systems:
  • Operational or Under Construction: In 29 cities, with 1,010 km operational in 23 cities.
  • Underway: An additional 980 km of metro systems.
  • Daily Ridership: Reached 10.2 million in FY25.
  • Benefits: Contributed to reducing emissions, saving time, and cutting vehicle operating costs.

ATAL MISSION FOR REJUVENATION & URBAN TRANSFORMATION (AMRUT)

• Launch: 2015.
• Focus: Improve urban water management.
• Progress:
  • Tap Water Coverage: Reached 70%.
  • Sewerage Coverage: At 62%.
  • Water Treatment Capacity: Created or augmented 4,649 million litres per day.
  • Parks: Developed 2,439 parks, adding 5,070 acres of green space.
• AMRUT 2.0:
  • Launch: 2021.
  • Aim: Expand coverage to all statutory towns and cities.
  • Initiated: 8,923 projects worth ₹1.89 lakh crore.

SMART CITIES MISSION

• Launch: 2015.
• Aim: Develop smart cities with essential infrastructure and a sustainable environment.
• Progress (as of January 13, 2025):
  • Proposed: 8,058 projects worth ₹1.64 lakh crore.
  • Completed: 7,479 projects worth ₹1.50 lakh crore.
• Key Achievements:
  • Integrated Command and Control Centres (ICCCs): Operational in 100 cities, managing urban services like crime tracking, transport, and disaster management.
  • CCTV and Public Safety: Over 83,000 CCTV cameras installed across 1,200+ projects.
  • Smart Mobility: 16 lakh solar/LED streetlights and 1,700 km of smart roads built, alongside shared bicycles and electric buses.
  • Affordable Housing: Over 35,000 units built in 23 cities.

Investment in Infrastructure:

• 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%.

Focus on Infrastructure:

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

INITIATIVES TAKEN

• 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.

CHALLENGES IN INFRA DEVELOPMENT

• 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.

CapEx Improvement Post-Election:

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

Government's Efforts:

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

KEY FACTS ON INDIA’S RAILWAY & PHYSICAL CONNECTIVITY

• 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.

MAJOR PROJECTS

• 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.

STATION DEVELOPMENT

• 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.

KEY FACTS ON INDIA’S ROAD TRANSPORT

• 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.

KEY INITIATIVES

• 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).

SUSTAINABLE PRACTICES IN HIGHWAY DEVELOPMENT

• 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.

Key Developments in Tourism and Space Infrastructure:

• Tourism Infrastructure:
  • Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD):
    • Objective: Focuses on developing tourism infrastructure at identified pilgrimage destinations and heritage cities.
    • Progress: Various projects sanctioned and completed to enhance religious and heritage tourism as of December 2024.
• Swadesh Darshan Scheme:
  • Objective: Integrated development of tourism destinations, including theme-based tourist circuits.
  • Revamped: In 2022 to Swadesh Darshan 2.0, focusing on sustainable and responsible tourism.
  • Approved Projects: 34 projects with a total funding of ₹793.2 crore.
• Interest-Free Loans for Capital Investment:
  • Approved: 40 projects across 23 states for interest-free loans (50 years) amounting to ₹3,295.8 crore.
  • Aim: Create iconic tourist centres of global standards.

INDIA’S SPACE INFRASTRUCTURE

• Current Space Assets:
  • Total: 56 active space assets.
  • Breakdown:
    • Communication Satellites: 19.
    • Navigation Satellites: 9.
    • Scientific Satellites: 4.
    • Earth Observation Satellites: 24.
• Enhanced Capabilities: Addition of a small satellite launch vehicle to India’s fleet and successful launch contracts with OneWeb and SpaceX.
• ISRO’s Infrastructure Monitoring Platforms:
• • • Bhuvan Platform: Supports infrastructure monitoring for various development schemes such as MGNREGA and PMKSY.
    • Electrical Infrastructure: Manages electrical infrastructure in Maharashtra and Telangana.
    • Nyaya Vikas Portal: Monitors 2,840 judicial infrastructure projects using Web GIS and mobile geotagging.
    • Urban Geospatial Databases: Created for 238 AMRUT cities to assist in urban planning using GIS-based master plans.

INDIA’S SPACE VISION

• Approved: Four key projects to advance India’s space exploration:
  • Gaganyaan Follow-on Mission: India’s human spaceflight program.
  • Chandrayaan-4 Lunar Sample Return Mission.
  • Venus Orbiter Mission.
  • Next Generation Launch Vehicle Development.

Why This Topic Matters for UPSC

• Prelims: Revise definitions, institutions, locations, reports and factual features connected with India's Infrastructure Development and Capital Expenditure.
• Mains: Link the topic with Economy, Infrastructure, Governance, Economic Survey and organise the answer under background, significance, challenges and way forward.
• Interview: Explain the issue in balanced language and distinguish verified facts from opinion.

Key Takeaway

Infrastructure investment raises productive capacity by improving transport, digital connectivity, water, sanitation, housing, tourism and space systems. This consolidated Economic Survey chapter explains India's public capital expenditure, major initiatives, outcomes and implementation challenges.