Thursday, May 28, 2015

Infrastructure - Structural Bottlenecks

Sir, it is being said the infrastructure in India is underdeveloped mainly because of structural bottlenecks rather than financial elements. What exactly does the structural bottleneck mean? How are they different from other problems plaguing infra development?

Let us understand the infrastructure in India. Anyway, when we talk of Infrastructure in India, it includes Electricity, Gas, Water, Transport, Storage and communications. There are lot of opportunities and support organizations to promote infrastructure in India through various initiatives. As we all know, bottlenecks are the problematic areas in any system/ process.
Here the structural bottlenecks means the process involved in getting any infrastructure development project implemented/ deployed.
The process necessarily involves the identification, planning, proposal preparation, obtaining approvals, working out strategies to satisfy all the stakeholders, implementing the project and rolling-out the projects.
The success of all the above activities results in the speedy implementation of the project.
Mostly the question is framed by the report of the IMF- which says that our country India needs to address the 'bottlenecks' in the power and infrastructure sectors which are mainly to be blamed for a dramatic slowdown in the country's economic growth over the past year.
This report is useful in understanding this: http://www.aninews.in/newsdetail3/story103300/india-should-resolve-039-bottlenecks-039-in-power-infrastructure-sectors-for-economic-growth-imf.html
It is clear about structural bottlenecks. What are the other problems faced in infra development?
You spell out a few

Sir, lack of medical facilities in non metropolitan cities.

Good.. you should think about all the facilities around us.. their development.. the strategy for implementing them.. the support structure.. who will do what.. their responsibility.. their contribution to the society.. etc..

Yes sir , non availability of lands for small entrepreneurs
When you think of a project for improvement, you should think of who will do that project, how they will do that project and who will be sponsoring the project and other aspects of project implementation and deployment etc. There are lot of initiatives taken by Government - both Central and State.  Apart from this, there are lot of projects which are done with the help of other international bodies- like World Bank, IMF etc.

Over and above this, there are lot of projects which are executed with the help of citizens (PUBLIC) and other organizations (PRIVATE/ PUBLIC) which also leads to the Public-Private partnership (PPP) models.

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