Economic Survey 2020-21: Infra quintessential to boost growth
New Delhi: Terming investment in infrastructure “quintessential” to boost growth, the Economic Survey on Friday said post unlocking of the economy, infra sectors are poised for growth and construction of roads is expected to return to the high pace attained before COVID-19.
“Basic infrastructure facilities in the country provide the foundation of growth. In the absence of adequate infrastructure, the economy operates at a suboptimal level and remains distant from its potential and frontier growth trajectory.
“Iinvestment in infrastructure is quintessential for more rapid and inclusive economic growth,” the Economic Survey tabled in Parliament said.
Asserting that Rs 111 lakh crore National Infrastructure Pipeline for 2020-2025 will be a game-changer for the Indian economy, the Survey said sectors like energy, roads, urban infrastructure, railways have a lion’s share in it that will help boost growth.
To boost private investment in infra sector, it said the government has set up the Public Private Partnership Appraisal Committee (PPPAC) for appraisal of PPP projects.
In 2020-21, PPPAC recommended 7 projects with total project cost of Rs 66,600.59 crore. Out of these 7 projects, 1 is a telecom sector project, 3 are railway sector projects, 2 are MHA sector projects and 1 is port sector project, it said.
In the current fiscal year, the government approved the continuation of the revamped Infrastructure Viability Gap Funding (VGF) scheme till 2024-25.
Revamping of the proposed VGF scheme will attract more PPP projects and facilitate the private investment in social sectors (Health, Education, Waste Water, Solid Waste Management, Water Supply etc.), it said.
It said road network is the backbone of the transport system.
The pace at which roads have been constructed has grown significantly from 12 km per day in 2014-15 to 30 km per day in 2018-19 before it moderated in 2019-20. Covid had resulted in decline of road construction to 22 km a day in the current fiscal. Construction of roads is expected to return to the high pace attained before Covid, it added.
The Survey said between July 2019 to October 2020, 37 Sagarmala projects worth Rs 8,461 crore were completed which comprise 17 projects of port modernization worth Rs 2,721 crore, 14 port connectivity projects worth Rs 5,372 crore and 6 coastal community development projects worth Rs 368 crore.
On Indian Railways, it said the government has allowed the private players to operate in the railways sector through the PPP mode.
