Infrastructure is the hallmark of economic development as the superstructure of a nation’s overall wealth hinges on it. Components like underlying basic buildings, institutions and facilities or other essential elements that are necessary to sustain and enable economic growth, can be defined as infrastructure. Physical infrastructure has a direct impact on the growth and overall development of the country at large. But the fast growth of the Indian economy in recent years has placed increasing stress on physical infrastructure such as electricity, railways, roads, ports, airports, irrigation, urban and rural water supply and sanitation, all of which already suffer from a substantial deficit. Infrastructure development will help create a better investment climate. The goals of inclusive growth and 9% GDP growth can be achieved only if this infrastructure deficit is overcome.
Infrastructure development has been accorded key priority in the 11th Five Year Plan for the years 2007-2012 and the 12th Five Year Plan period of 2012-2017, with projected investment requirement of $500 billion and $1.5 trillion, respectively, by the Prime Minister’s Committee on Infrastructure. These initiatives pale when compared to China that spends about 11% of its GDP on infrastructure development, as compared to 6% of the GDP spent in India . This indicates that infrastructure development in India needs to be scaled up to match global standards.
The rapid development of Chennai City over the last decade is an example of how good infrastructure can propel industrial, economic and social development. Chennai, the fourth most populous metropolitan area and the fifth most populous city in India, has the distinction of having the highest level of urbanisation (47%) in the country today.
Global companies including all the majors in the IT Industry, automotive and engineering companies have made Chennai their destination of choice for setting up their operations. Some of the notable names include BMW, Dell, Ford, Hyundai, Saint Gobain, Nokia, Renault - Nissan, Samsung, World Bank, etc.The favourable investment climate in the State today can be attributed to the pro-investment policies of the Government and the quality of infrastructure that the State has to offer. Right from creating business cities in a Public Private Partnership (PPP) format to building elevated road corridors that enable faster movement of heavy commercial traffic, the Government and its partners, have been creating infrastructure that has, in turn, been driving industrialisation and investments into the State.
The level of investments into India is rising and so is the disposable income of the salaried/business classes. The customer becomes the central element around which all the development activity is based. Sustainable, long-term and well-planned development in balance with nature is the key to attracting the best into the country. The key objective of developing infrastructure, both physical and social is to attract investors. The key stakeholders involved in the creating these infrastructure include :
Promoter/Developer - the Promoter can be the Government, a private entity or a Public Private Partnership, which is responsible for master-minding and conceptualising a project. The onus of the entire project throughout its lifecycle lies with the promoter.
Master Planner - the master planner is responsible for creating land use plans based on the land terrain. The master planner is responsible for crafting a sustainable plan which caters to the future need and is also in harmony with the surrounding environment.
Architect - an architect designs the vertical structure in accordance with the use of the building, the location and its surrounding areas. It is also up to the architect to maximize the use of natural elements within a vertical space and create a harmonious space for the users in accordance with the laws of the land.
Contractor - the contactor executes the plans drawn up by the master planner/architect. The contractor is responsible for inculcating sustainable practices while executing the project and also delivering the project within the stipulated time and cost.
Financial Institution - the financial institution provides funds to both developer and customer.
Legal Consultant - a legal consultant provides legal advisory services to the promoter on various issues relating to the project and the customer, in order to help him make an informed decision.
Government - The Government is the regulatory authority that frames rules and regulations. It is responsible for promoting inclusive growth.
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