Ch-11 - CHAPTER 11 Infrastructural Challenges Introduction...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
C HAPTER 11 Infrastructural Challenges Introduction Infrastructure and its services play a key role in economic development. Slow growth of infrastructure impede the growth of the economy. Development of quality infrastructure, which is efficient and low cost to users, however, requires high upfront cost and often has long gestation period. Heavy investment requirement involved in its development suggests that participation of all sectors— public, private and foreign—may be needed. Since many infrastructure services operate at fairly large scale, they assume monopolistic character. In such cases, some regulatory framework is instituted irrespective of its ownership in public or in private sectors. The regulator should be such that it has no vested interest in running the service, or running it inefficiently and/or pricing the service at much higher level than its efficient cost. We have earlier suggested that infrastructure services can be divided into two categories — economic and social. We propose to discuss in this chapter three economic and two infrastructure services. These are: energy, transport, communication, education and health. Energy As we have seen in a previous chapter, energy is a critical input for most of the production processes and consumption activities. Modern economic growth in all countries is found to be associated with a massive use of energy. In the last fifty years, we have had more than four-fold increase in total energy use for less than three-fold population. It increased from 90 MOTE (million tonnes of oil equivalent) in 1953-54 to 375 MOTE in 1996-97. But, if we concentrate only on commercial energy, the increase is ten- fold from 25 MOTE to 250 MOTE. It is obvious that most of the increase accounts for the shift from non- commercial energy to commercial energy. The share of commercial energy in total energy consumption has increased from 28 per cent in the early fifties to 66 per cent in the late nineties. While use of commercial energy has risen ten-fold, that of non-commercial energy rose only two-fold. Our per capita energy consumption has increased by about 50 per cent from 0.25 OTE in 1953-54 to 0.36 OTE in 1996-97. It is considered pretty low. While we will have to put efforts to optimise availability of energy, in view of limited potential of primary
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
142 INDIAN ECONOMIC DEVELOPMENT ENERGY Non-Commercial Commercial Fuelwood Animal Dung Biogas/Biomass Crop Residue resources we will also be called upon to conserve energy wherever and as much as possible. There is subtle distinction between primary energy resources and final energy resources. When coal is consumed by electricity generation and electricity is consumed by industry, we call coal as primary energy resource and electricity as the final one [By this resource distinction, wood converted to charcoal, used for boilers is a primary resource and charcoal is a final resource]. Coal, petroleum products, and natural gas are all both primary resources and final resources as they are consumed directly as well as indirectly
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/20/2010 for the course CEDT 601 taught by Professor Ypr during the Spring '00 term at Indian Institute of Technology, Kharagpur.

Page1 / 16

Ch-11 - CHAPTER 11 Infrastructural Challenges Introduction...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online