Index

1-Abstract

2-Introduction

3-Typs of infrastructure
a-hard infrastructure
b-soft infrastructure

4-Types of hard infrastructure

a-Transportation infrastructure
b- Energy infrastructure
c- Water management infrastructure
d- Communications infrastructure
e-Solid waste management

5-Types of soft infrastructure

a- Institutional infrastructure
b- Industrial infrastructure
c-Social infrastructure
d-Cultural, sports and recreational infrastructure

6- Comparing Indian Infrastructure with China’s Infrastructure

7-Conclusion

2
 Abstract

The physical components of interrelated systems providing commodities and services

essential to enable, sustain, or enhance societal living conditions is defined as infrastructure.
Types of infrastructure are: hard infrastructure, soft infrastructure.
Hard infrastructure is further classified as ,Transportation infrastructure, Energy
infrastructure, Water management infrastructure, Communications infrastructure & Solid waste
management.
While soft infrastructure is further classified as Institutional infrastructure, Industrial
infrastructure, Social infrastructure ,Cultural, sports and recreational infrastructure.
Concerning India is very good in Water and sanitation facilities, while lags in computer
literacy, internet users, road transport, production, social infrastructure.

3
 Introdution

1-As a key factor in economic development, infrastructure development occupies a central

place in development policy and planning of developing countries.
2-Infrastructure development can also help in narrowing development gaps between developed
and laggard regions.
3-Cross-border transport infrastructure and connectivity facilitates that benefits of trade
liberalization can be reaped by the local producers and consumers.
4-Hence, transport connectivity and cross border facilitation would be key components of any
scheme of regional economic integration.

Infrastructure is the basic physical and organizational structures needed for the operation of
a society or enterprise, or the services and facilities necessary for an economy to function. The
term typically refers to the technical structures that support a society, such as roads, water
supply, sewers, power grids, telecommunications, and so forth. Viewed functionally,
infrastructure facilitates the production of goods and services; for example, roads enable the
transport of raw materials to a factory, and also for the distribution of finished products to
markets. In some contexts, the term may also include basic social services such as schools and
hospitals. In military parlance, the term refers to the buildings and permanent installations
necessary for the support, redeployment, and operation of military forces.

Encompassing all things to all people is hardly a useful way to define infrastructure –
clouding investors, governments, and their citizens’ ability to understand, advocate, and direct
capital toward durable, networked assets with widespread societal benefits. Primary
infrastructure components are generally monopolistic in nature and require large financial
commitments for their development, repair and replacement. They can be built, touched,
enabled, disabled, and function together to form interrelated, dependent systems that deliver
needed commodities and services to society. In doing so, they facilitate economic productivity
and promote a standard of living.

4
 Infrastructure can then be more concisely defined as “The physical components of
interrelated systems providing commodities and services essential to enable, sustain, or
enhance societal living conditions.

Opportunities in Operations Management for Infrastructural Development

Operations Management has 3 major aspects namely; Quality, Cost and Time i.e to produce and
deliver product and services at the right time with the right quality and right cost. These
objectives can only be achieved when all the players involved from extraction to consumption
work in a synchronized way. Infrastructure plays a major role in order to accomplish the OM
objectives. These can be achieved by following

1. Traffic management at the ports (Capacity Management), i.e., maximum utilization of the
ports
2. Modernization of the airports in India and Scheduling of the air planes at the airports
3. Good environmental management practices through recycling, waste management
Inventory or logistics management to better utilize the transportation facilities
4. Maximum utilization of the resources (Manufacturing machines) through a continuous
and regulated supply of electricity
5. Reducing the cost to quality which saves rework in construction projects by
implementing quality at source.

5. Reducing the cost to quality which saves rework in construction projects by

implementing quality at source.

5
 "Hard" versus "soft" infrastructure

“Hard" infrastructure refers to the large physical networks necessary for the functioning of a
modern industrial nation, whereas
"Soft" infrastructure refers to all the institutions which are required to maintain the
economic, health and cultural/social standards of a country, such as the financial system, the
education system, the health care system, the system of government and law enforcement, as
well as emergency services

Types of "hard" infrastructure:-

1. Transportation infrastructure
2. Energy infrastructure
3. Water management infrastructure
4. Communications infrastructure
5. Solid waste management

6
 Transportation infrastructure

Road and highway networks, including structures (bridges, tunnels, culverts, retaining
walls), signage and markings, electrical systems (street lighting and traffic lights), edge
treatments (curbs, sidewalks, landscaping) and specialized facilities such as road
maintenance depots and rest areas

• Railways, including structures, terminal facilities (rail yards, train stations), level
crossings, signalizing and communications systems
• Canals and navigable waterways requiring continuous maintenance (dredging, etc.)
• Seaports and lighthouses
• Airports, including air navigational systems
• Mass transit systems (Commuter rail systems, subways, tramways, trolleys and bus
transportation)
• Bicycle paths and pedestrian walkways;
• Ferries.

7
 Energy infrastructure

• Electrical power network, including generation plants, electric grid, substations and local
distribution;
• Natural gas pipelines, storage and distribution terminals, as well as the local distribution
network. Some definitions may include the gas wells, as well as the fleets of ships and
trucks transporting liquified gas;
• Petroleum pipelines, including associated storage and distribution terminals. Some
definitions may include the oil wells, refineries, as well as the fleets of tanker ships and
trucks;
• Coal mines, as well as specialized facilities for washing , storing and transporting coal;
• Steam or hot water production and distribution networks for district heating systems.
• Electric vehicle networks for charging electric vehicles

8
 Water management infrastructure

• Drinking water supply, including the system of pipes, storage reservoirs, pumps, valves,
filtration and treatment equipment and meters, including buildings and structures to house
the equipment, used for the collection, treatment and distribution of drinking water
• Sewage collection and disposal of waste water
• Drainage systems (storm sewers, ditches, etc..)
• Major irrigation systems (reservoirs, irrigation canals)
• Major flood control systems (dikes, levees, major pumping stations and floodgates)
• Large-scale snow removal, including fleets of salt spreaders, snow plows, snowblowers,
dedicated dumptrucks, sidewalk plows, the dispatching and routing systems for these
fleets, as well as fixed assets such as snow dumps, snow chutes, snow melters.

9
 Communications infrastructure

• Postal service, including sorting facilities.

• Telephone networks (land lines) including switching systems
• Mobile phone networks
• Television and radio transmission stations, including the regulations and standards
governing broadcasting;
• Cable television physical networks including receiving stations and cable distribution
networks. (Does not include content providers or "networks" when used in the sense of a
specialized channel such as CNN or MTV).
• The Internet, including the internet backbone, core routers and server farms, local internet
service providers as well as the protocols and other basic software required for the system
to function. (Does not include specific websites, although may include some widely-used
web-based services, such as Social network services and web search engines).
• Communications satellites
• Undersea cables
• Major private, government or dedicated telecommunications networks, such as those used
for internal communication and monitoring by major infrastructure companies, by
governments, by the military or by emergency services, as well as national research and
education networks.
• Pneumatic tube mail distribution networks

10
 Solid waste management

• Municipal garbage and recyclables collection;

• Solid waste landfills
• Solid waste incinerators and plasma gasification facilities
• Materials recovery facilities
• Hazardous waste disposal facilities;

Types of "soft" infrastructure

11
1. Institutional infrastructure
2. Industrial infrastructure
3. Social infrastructure
4. Cultural, sports and recreational infrastructure

Institutional infrastructure

12
• The financial system, including the banking system, financial institutions, the payment
system, exchanges, the money supply, financial regulations as well as accounting
standards and regulations;
• The system of government and law enforcement, including the political, legislative, law
enforcement, justice and penal systems, as well as specialized facilities (government
offices, courthouses, prisons, etc.) and specialized systems for collecting, storing and
disseminating data, laws and regulation;
• Emergency services, such as police, fire protection, ambulances, etc., including
specialized vehicles, buildings, communications and dispatching systems.

13
 Industrial infrastructure

• Manufacturing infrastructure, including industrial parks and special economic zones,

mines and processing plants for basic materials used as inputs in industry, specialized
energy, transportation and water infrastructure used by industry, plus the public safety,
zoning and environmental laws and regulations that govern and limit industrial activity,
and standards organizations;
• Agricultural, forestry and fisheries infrastructure, including specialized food and
livestock transportation and storage facilities, major feedlots, agricultural price support
systems (including agricultural insurance), agricultural health standards, food inspection,
experimental farms and agricultural research centers and schools, the system of licencing

14
 and quota management, enforcement systems against poaching, forest wardens and fire
fighting.

Social infrastructure

• The health care system, including hospitals, the financing of health care, including health
insurance, the systems for regulation and testing of medications and medical procedures,
the system for training, inspection and professional discipline of doctors and other
medical professionals, public health monitoring and regulations, as well as coordination
of measures taken during public health emergencies such as epidemics;
• The educational and research system, including elementary and secondary schools,
universities, specialised colleges, research institutions, the systems for financing and
accrediting educational institutions;

15
• Social welfare systems, including both government support and private charity for the
poor, for people in distress or victims of abuse.

Cultural, sports and recreational infrastructure

16
• Sports and recreational infrastructure, such as parks, sports facilities, the system of sports
leagues and associations;
• Cultural infrastructure, such as concert halls, museums. libraries, theatres, studios, and
specialized training facilities;
• Business travel and tourism infrastructure, including both man-made and natural
attractions, convention centers, hotels, restaurants and other services that cater mainly to
tourists and business travellers, as well as the systems for informing and attracting
tourists, travel insurance, etc.

17
 Comparing Indian Infrastructure with China’s Infrastructure

China has plowed its huge reservoir of domestic saving —

about 40% of GDP — into some of the best infrastructure you will see anywhere in
the world. And it has been brilliant in attracting massive inflows of foreign direct
investment as the means to acquire technology, managerial expertise, and factories
on a scale and with scope that is hard to believe. China has, in fact, leapt to the fore
as the largest recipient of FDI in the world — some US$53 billion per year in 2002-03.
India suffers in comparison basically from having none of the above. That’s an
exaggeration but not all that wide of the mark. India has a 24% national saving rate,
only a little more than half that of China. As a result, it has far less in the way of
internally-generated funds available to plow back into infrastructure. And it doesn’t
take much traveling around in India to experience first-hand the seriousness of its
infrastructure constraint.

18
 The India Infrastructure Report 2004, put out by the 3iNetwork of India’s best and
brightest engaged in this field, says it all, “…even relative to our income, our failure
in water, roads, sanitation, schooling, and electricity is woeful.” Nor can India hold a
candle to China on FDI. China’s inflows in 2003 were more than ten times the US$4
billion that went into India. But that’s not the lens through which India should be
viewed, in my opinion. India’s strength is elsewhere —namely, in an extraordinary
stock of human capital. And it has deployed that strength into the creation of world
class IT-enabled service companies such as Infosys and Wipro and the service
subsidiaries of large conglomerates such as Reliance and Tata. I spent time with each
of these companies and was staggered by what they had accomplished in the
relatively short time span of the past 10-20 years. The push into IT-enabled services
sidesteps what I believe are India’s greatest impediments on the road to
development — its infrastructure and FDI deficiencies. Self-sufficient in electrical
power — all big companies have back-up generating capacity — the only
infrastructure

Some Infrastructure comparative Facts.

The indicators of modernization are as follows: and how comparatively the two
countries score over each other.
(a) percentage of population with access to improved water sources (as defined by
the world Bank)
(b) percentage of urban population with access to improved sanitation
Fact
Water and sanitation facilities in India are being modernized at a satisfactory rate. Access to
modern water supply and urban sanitation facilities in India is better than that in China and
improving at a faster rate. The gap between India and the developed countries in this sphere is
also narrowing
(c) number of internet users
(d) personal computers per 1000 people
Fact

19
Despite the much heralded information technology boom in India the rate of growth of computer
infrastructure and computer literacy has lagged behind the Chinese rate of growth in the last five
years. Nevertheless, the gap between India and the developed world has narrowed.

(e) commercial energy use per capita and

(f) electricity consumption per capita.
Fact
Mechanization shows a similar trend to computerization.Thus, while India has done well in
terms of modern infrastructure that affect living conditions the same cannot be said of
productivity enhancing infrastructure.
India has total of 28 million cellular users as of the end of 2003 and 18 million new users
were added in 2003. China has total of 270 million cellular users as of the end of 2003 and
around 60 million new users were added in the same year.
Internet users in India: More than 16 million: see: Internet users in China: 78million.
Broadband users in China:17.4 million. see: Boroadband users in India: Quiet Low Less than 28
million tons of iron and steel was used in 2003 in India (An important index of infrastructure
construction. This is the total India produced in 2003, and India is a net iron & steel exporter)
(This is even less than what China produced in 1978 when China began its reform)
China produced around 225 million tons of iron and steel and imported other 35
million tons in 2003 for the construction. 55% of the world cement (Another infrastructure
construction index) was used in China.
China's expressway (at least 4 lanes, speed limit 100KM/hour or 120KM/hour)
reaches 30, 000KM. Around 4, 600 KM is being added each year. India just began its
first expressway project in 2003:
India produced around 36 million tons of oil (A natural resource index) in 2003 and
will face the resource problem soon.
China produced 160 million tons of oil in 2003 and imported more than 100 million
tons in the same year.
India initiated an ambitious reform programme, involving a shift from a
controlled to an open market economy showing signs of overheating because of

20
basic infrastructure constraints, both physical and human. So far, the bulk of
infrastructure was in the public sector. Public sector in India operating in a protected
set up has been largely subsidised by the Government. Since the launching of
reform, Government is trying to reduce its borrowing which means that further subsidization will
not be possible. There is one area where there is a need for private sector and foreign investment
to come in. Because of the long gestation period, and many social implications, the infrastructure
sector compares unfavorably with manufacturing and many other sectors. For this, specific
policies in this area are need to make infrastructure attractive. Clearly, there is a wide gap
between the potential demand for infrastructure for high growth and the available supply. This is
the challenge placed before the economy, i.e. before the public and private sector and foreign
investors. This can also be seen as an opportunity for a widening market and enhanced
production .The six core and infrastructure industries, viz., electricity, crude oil, petroleum
refinery products, coal, steel and cement, having a weight of 26.7 per cent in overall .Index of
Industrial Production (IIP) achieved 6.8 per cent during 2000-01. Several fiscal incentives were
announced by the government for boosting investment in infrastructure projects. Ten-year tax
holiday offered to projects in core sectors like roads, highways, waterways, water supply,
sanitation and solid waste management systems can now be availed of during the initial 20 years.
Projects in airports, ports,inland ports, industrial parks and generation and distribution of powe
can now avail of 10-year tax holidays during the initial 15 years

The Critical Steps:-

A-A Strong Government with Clear direction
"Once committed to a focus on economic growth, some good policy decisions were implemented
quickly and efficiently While India's corporate leaders agree that this could be true, they are
emphatic that India's vibrant democracy is the only way for the country to ensure that growth and
development reaches all. There is chaos in it and sometimes policy decisions tend to be reversed.
But ultimately India's democracy is essential for the country's welfare, But come what may any
party Govt. may come or go but the direction of development of Infrastructure may not be
altered.

B- A consistent and thoughtful marketing effort

21
We need to sell India. A USP is what is needed. India's corporate leaders agree that the country's
politicians have never sold the country. Much of the investment flowing into the country today
is on the back of India's reputation as a place for skilled people who have proven themselves in
the information technology services sector.

C-A Bringing in the Money (FDI and Private Participation)

. The importance of infrastructure sector also follows from the fact that foreign investors are
now looking at infrastructural development as a yardstick for directing their investments. In fact
infrastructural development had taken precedence over wage levels in assessing the investment
potential in developing countries. In India infrastructure sector itself is becoming an attractive
investment area for FDIs. Already there is a huge demand for funds from the manufacturing
sector. On top of that is the demand from the infrastructure sector. Both draw heavily from the
savings of the household sector. The growth of financial savings of household sector however
is not rising fast. In this context, the importance of increased obligation of domestic saving needs
underscoring.
According to the India infrastructure Report (IIR), currently 5.5 percent of the GDP is
invested in the infrastructure sector. This needs to be increased to 7 percent within the next three
years and 8 per cent by 2005-06, by which time the annual level of investment in infrastructural
facilities is projected to treble or rise even more, from the current level of Rs. 6000 billion
(US$52 billion) by 2005-2006. The total infrastructure investment requirements for the next five
years again have been estimated in the report at about Rs. 4000-4500 billion (US$ 115-130
billion). The task of finding such large amounts and thereafter deploying them productively calls
for a close partnership between the public and private sectors, with a vital role reserved for
foreign capital. To finance this large short fall, the domestic saving rate needs to be increased by
a minimum of 26.7%. besides this has to be supplemented at the margin by FDI. However, this
"margin is indeed very important since the role of foreign investment has to be read not only as a
gap.

D- Creation of zones and infrastructure for businesses

India has tried to do this with its creation of export processing zones and software technology

22
parks. But the problem lies in some key areas like creation of infrastructure and quick approval
of investment proposals. More needs o be done.

E-. The business-above-all attitude

"In India, trade and economic growth have never been paramount. That has to change if we need
to be a developed economy by 2020 India's economic growth has always given in to the
sentiments of the local industry; like in cases where foreign investments have been. curbed or
restricted. Provincial and local governments control the vast majority of capital-
hungryenterprises, and that creates an unsolvable collusion between regulators and the state's
ownership interests. This is arguably advantageous in the early, low-tech stages of infrastructure
and commercial development, but for the future its impact is likely to be less positive
Indian Interests have always to be kept in mind while we do our interactions with the other
dwellings of mother earth.

23
0

24
 Conclusion

From over all this, we concluded that there is a steady but continue development in
infrastructure in India. As it is required to more concerned towards growth of infrastructure since
development of nation depends on it .Economic growth and poverty reduction in India are
closely tied to its ability to reap benefits from regional economic integration. Though logistics
have not yet become a serious constraint, action will be required to enhance both the quality and
quantity of infrastructure to improve overall efficiency. Growing cross-border economic
activities in India have important implications for the demand for infrastructure development in
the region. Infrastructure needs for feeder seaports and logistics services, among others, will
continue to rise rapidly.

25
 Reference

Websites:-
1-www.coolavenues.com
2-www.aidg.org/
3-www.scribd.com/...

Books:-
1-Infrastructure development

26