The Economic Survey has pitched for viewing infrastructure as a foundation for long-term growth, and made a call to promote infrastructure investment as “strategic”.

It has also noted that enhanced investment in the infrastructure sector will certainly help in creating jobs, both directly and indirectly.

The Survey buttresses this point by quoting Roger McNamee, a private fund investor and an early investor in Google and Facebook: “We need to stop thinking about infrastructure as an economic stimulant and start thinking about it as a strategy. Economic stimulants produce Bridges to Nowhere. Strategic investment in infrastructure produces a foundation for long-term growth.”

Station redevelopment

In a move that will make available cheaper finance for railway station redevelopment projects, the survey notes that ‘station redevelopment’ has been included in the Harmonised List of Infrastructure Subsectors.

The Railways’ spare space in and around the stations will be commercially developed for station redevelopment projects. It has already been undertaken through various modes such as Zonal Railways, Indian Railway Stations Development Corporation Ltd, joint ventures with smartcity special project vehicles, Railway PSUs and co-operation with State governments.

Moreover, the commercial development undertaken near a station will become the nerve centre of the city and provide quality retail, commercial and hospitality development.

Besides, the redeveloped stations will improve passenger experience by providing amenities like digital signage, escalators and elevators, self-ticketing counters, executive lounges, luggage screening machines, walkways, holding areas for passengers, grand and distinctive roofing and flooring, and free and paid WiFi.

An agreement has been signed by the Ministry of Railways with Ministry of Housing and Urban Affairs for integrated planning for station redevelopment projects in cities identified as smartcities. Ten stations have been taken up for redevelopment under this scheme by the Rail Land Development Authority and NBCC (India) Ltd.

Simultaneously, the survey lists policy initiatives taken to break stalled projects in highways sector, and how there has been an increase in credit offtake. It has also noted how road building contributes positively to the per capita income of States, and has called for a comprehensive policy on district roads. There is a need to develop other PWD roads including district roads, so as to provide better access, thereby enhancing economic activities, it says.

Building highways

In this context, it has called for ‘enhanced” construction of national highways and conversion of State highways into national ones, which will create demand for raw material like cement, steel and manpower.

Manish Agarwal, Leader – Infrastructure, PwC India, says the growth in manufacturing is a big positive. Credit offtake, growth in cement, steel etc point to pick-up in capacity creation also. As the pace picks up, the industrial corridors could see faster development, he adds.

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