Outlook for the Economic Survey (2006-07) also suggests a promising improvement in infrastructure development.

It says that with formulation of model PPP and concession agreements, infrastructure investments should gain momentum over the coming months and year. But at the same time, the survey outlook cautions that short-term problems won't disappear easily.

In such a scenario, the Economic Survey for 2006-07, released today, suggested that India needs a massive $320 billion to be invested in infrastructure over the next five years and the requirements could be met through insurance and pension funds.

The Committee on Infrastructure, headed by the Prime Minister, has projected Rs 2,20,000 crore fund requirement for modernising and upgrading highways, Rs 40,000 crore for civil aviation, Rs 50,000 crore for ports and Rs 3,00,000 crore for the railways by 2012.

ROADS
The Economic Survey has pointed out that problems in land acquisition, removal of structures, shifting of utilities and law and order in some states are among the problems affecting the growth of the road sector.

It said that the progress in road infrastructure, especially the completion of the National Highway Development Programme (NHDP) will depend on removing law and order problems in some states and monitoring the performance of errant contractors.

The Survey added that nearly 93 per cent of the work on the Golden Quadrilateral had been completed by November 2006 and the North-South and East-West corridors are expected to be completed by December 2009.

The government has planned to give a facelift to all National Highways at an estimated cost of Rs 2,20,000 crore.

PORTS
Slow evacuation of cargo coupled with poor hinterland connectivity has undermined the efficacy of ports and it is imperative to develop a multi-modal system to enhance their competitiveness, the Economic Survey has said.

It added that even though there is adequate capacity and modern handling facilities in Indian ports, the average turnaround time is 3.5 days as compared to 10 hours in Hong Kong, which undermines the competitiveness of the Indian ports.

POWER
With the rate of returns for state electricity boards (SEBs) deteriorating to -27.4 per cent in 2006-07 (revised estimate) from -24.8 per cent in 2005-06, resources forgone through such poor returns continued to be very large.

In 2006-07, while the direct transfers from state governments to SEBs was Rs 13,870 crore, an uncovered subsidy of Rs 21,201 crore remained, indicating the large reform potential for improving not only the electricity sector itself but also the fiscal position of the states.

According the Survey, the 10th Plan capacity addition target of 41,110 Mw was scaled down to 36,956 Mw at the time of the mid-term appraisal. The likely achievement is expected to be around 23,250 Mw, which is 63 per cent of the target in the mid-term appraisal.

By type of ownership, the anticipated shortfall (73 per cent) is the highest in the private sector, while by type of plant, it is the highest (43 per cent) in hydro plants.