The Economic Survey FY 2023-24 highlights impressive strides made in India’s infrastructure sector. In particular, it showcases the sector’s critical role in sustaining economic growth and development. Furthermore, this comprehensive survey underscores substantial advancements across various infrastructure domains. These advancements are driven by strategic planning, significant government investments, and a conducive policy environment.
Let’s delve into the key highlights of the Economic Survey FY 2023-24 and explore its detailed insights.
Also Read: Economic Survey FY 2023-24: Industrial Sector
Road Transport
The Government’s strategic planning and increased public investment have significantly enhanced the road network. Capital investment in this sector rose from 0.4% of GDP in FY 2014-15 to 1.0% in FY 2023-24, amounting to approximately INR 3.01 Lakh-Crore. The highest-ever private investment in FY 2023-24 reflects the sector’s attractive policy environment.
Key Initiatives:
- Parvatmala Pariyojana: Awarded six ropeway projects and received bids for two more.
- Pradhan Mantri Gram Sadak Yojana (PMGSY): Completed 7,63,308 km out of the sanctioned 8,29,409 km at INR 3.23 Lakh-Crore (as of 18th June 2024).
- Industrial Corridor Programme: 11 projects are being developed with 308 plots (1,789 Acres) allocated by March 2024. At present, about 2,104 Acres of developed industrial land and 2,250 Acres of commercial/residential/other land use are readily available for allotment.
Civil Aviation
India’s civil aviation sector remains one of the fastest-growing markets globally. The Government plans over INR 26,000 Crore in capital expenditure from FY 2019-20 to FY 2024-25 for airport development and modernization. The Airport Authority of India (AAI) achieved around INR 23,000 Crore of this planned expenditure by FY 2023-24.
Key Initiatives:
- Approved 21 greenfield airports, with 12 operationalized.
- Constructed new terminal buildings at 21 airports in FY 2023-24, increasing passenger handling capacity by approximately 62 million annually.
Rail Transport
Indian Railways, the world’s fourth-largest network under single management, saw a 77% increase in capital expenditure over the past five years. This investment reached INR 2.62 Lakh-Crore in FY 2023-24. Major investments include new lines, gauge conversion, and doubling.
Key Initiatives:
- Amrit Bharat Station Scheme: Launched in August 2023, focusing on continuous station development. Identified 1,324 stations for upgrade so far.
- Dedicated Freight Corridors (DFCs): Nearing completion of the Eastern and Western DFCs, with 96.1% of the total route length finished by FY24.
- GatiShakti Multi-Modal Cargo Terminal (GCT): Commissioned 77 GCTs and issued approval for 186 locations by March 2024.
Water Transport
India’s ports have doubled capacity since 2014, with a 27% increase in capital expenditure for ports, shipping, and waterways between FY 2022-23 and FY 2023-24.
Key Initiatives:
- Sagarmala Programme: Undertaking 8839 projects worth INR 5.8 Lakh-Crore across five key areas: port modernisation, connectivity enhancement, port-led industrialisation, coastal community development, and coastal shipping and inland water transport. Completed 262 projects, with 217 currently under implementation.
- Island Development: Developing Andaman & Nicobar and Lakshadweep Islands for tourism and other initiatives under Maritime India Vision 2030.
Major schemes:
- Jal Jeevan Mission (Launched August 2019): Aims to provide tap water connections to every rural household by 2024. The mission has a total outlay of INR 3.6 Lakh-Crore, with the central share being INR 2.08 Lakh-Crore and the States contributing INR 1.58 Lakh-Crore. Since the mission’s inception, tap water connections have increased from 17% to 76.12%.
- Atal Mission for Rejuvenation and Urban Transformation (AMRUT): Focused on providing safe drinking water in 500 cities, with 62% of projects completed. Awarded contracts for 5,999 projects worth INR 83,327 Crore, of which 5,304 projects worth INR 51,434 Crore were completed.
Renewable Energy Infrastructure
India has installed 190.57 GW of renewable energy capacity as of March 2024. This represents nearly 43.12% of the country’s total installed generation capacity. The sector saw INR 8.5 Lakh-Crore investments between 2014 and 2023 and is expected to attract INR 30.5 Lakh-Crore by 2030.
Key Initiatives:
- PM-KUSUM Scheme: Installed 166 MW of decentralized solar capacity and solarized 3.26 lakh agricultural pumps.
- Production Linked Incentive Scheme: Aiming to achieve GW-scale manufacturing capacity for high-efficiency solar PV modules with an outlay of INR 24,000 Crore. As of 31 March 2024, four manufacturers have commenced production.
- Solar Parks Scheme: Sanctioned 56 parks with a total capacity of 39.7 GW. Commissioned 11.59 GW, with the remaining capacity in various development stages.
- Wind Power: Installed capacity has grown to 45.89 GW, a 2.1-fold increase over the past decade. India ranks fourth globally.
- Green Energy Corridor (GEC) Projects: Achieved 9,111 ckm of transmission lines and 21,303 MVA substations in eight States under GEC-I. GEC-II is underway in seven States.
- Bio Energy Programme: As of March 31, 2024, installed 9.4 GW in biomass power and cogeneration, with additional capacities in waste-to-energy and biogas projects.
- National Green Hydrogen Mission: Approved in January 2023 with an outlay of INR 19,744 Crore. Aiming for 5 MMT of annual green hydrogen production by 2030, supported by 125 GW of renewable energy capacity and INR 8 Lakh-Crore in total investments.
Sports Infrastructure
The Government supports States and Union Territories in bridging gaps in sports infrastructure, with key initiatives under the Khelo India programme and the National Sports Development Fund.
Key Initiatives:
- National Programme for Development of Sports (Khelo India): Sanctioned 323 infrastructure projects at INR 3,073.7 Crore. In FY 2023-24, sanctioned 38 new infrastructure projects and completed 58 projects.
- Model Concession Agreement (MCA): Promoting private participation in sports infrastructure development. Aims to develop integrated sports stadium complexes (greenfield/brownfield) on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis, in consultation with the Infrastructure Finance Secretariat, Department of Economic Affairs, and Ministry of Finance.
Housing
The ‘Housing for All‘ initiative aims to meet the demand for housing, with more than 1.18 crore houses sanctioned and about 84 lakh completed. The scheme has been extended until December 2024.
- Affordable Rental Housing Complexes (ARHCs): Improving living conditions for urban migrants and the poor. So far, under Model 1, 5,648 houses have been made operational, with another 7,413 houses in progress.
- Under Model 2, the Ministry of Housing and Urban Affairs (MoHUA) has approved proposals for 82,273 new ARHC units in 7 States, with a Technology Innovation Grant (TIG) of INR 173.89 Crore.
- Construction for 44,116 of these units is underway, with 3,969 units in Sriperumbudur already completed.
Smart Cities & Tourism
The Smart Cities Mission has seen 100 cities undertake 8,011 projects worth INR 1.64 Lakh-Crore, with 89% completed. The revamped Swadesh Darshan scheme aims to develop tourism destinations across 57 identified locations.
Facilitating Infrastructure Development
National Infrastructure Pipeline (NIP): As of 12th April 2024, NIP encompasses over 9,666 projects and schemes across 37 sub-sectors, monitored through the India Investment Grid (NIP-PMG) portal. Among these, 4,413 projects (46%) are under implementation, and 2,062 projects (21%) have been completed.
Project Monitoring Group (PMG): The PMG resolves issues and regulatory bottlenecks for projects with investments of INR 500 Crore and above. It has resolved 6,867 issues across 1,443 projects worth INR 46.1 Lakh-Crore. The PMG portal has onboarded 2,457 projects totaling INR 62.5 Lakh-Crore, including major PM GatiShakti and critical infrastructure projects.
PM GatiShakti National Master Plan (PMGS-NMP): This plan promotes integrated multimodal infrastructure planning by coordinating among 43 Ministries. As of March 2024, the Network Planning Group, part of the PMGS-NMP, has evaluated 149 project proposals with a total estimated cost of INR 13.3 Lakh-Crore.
Conclusion and Outlook
India’s infrastructure sector continues to evolve, with strategic investments and robust government initiatives paving the way for sustainable and inclusive growth. The Economic Survey FY 2023-24 reflects the Government’s unwavering commitment to modernizing and expanding the nation’s infrastructure, setting a solid foundation for future economic development.
For more detailed insights, you can access the full document echap12.pdf (indiabudget.gov.in)
Also Read: Union Budget 2024-25: Key Highlights for the Construction Sector
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