Growth of Infrastructure

in India
 Introduction
• Defined as a set of activities through which goods and
services are provided to public.
• Definition keeps on evolving with time.
• It is fluid. (e.g. irrigation, fibre optic)
• Does not produce goods and services but provide a suitable
environment for the production.
 Infrastructure Growth in India
• Progress of primary and secondary sector directly depends
upon infrastructure.
• Ensures synergy through backward and forward linkage
providing strong base.
• Indian Government taking every possible step.
• RBI notified 100% FDI in
construction development
sector. (Automatic Route)
• Has relaxed rules regarding
FDI, liberalized the exit
norms.
 Bottlenecks To Infrastructure
Development
• Meeting the needs of burgeoning population.
• Inhospitable Business Environment for infrastructure
investors.
• Indiscriminate Urbanization.
• Reforming Infrastructure Financing.
• Attracting foreign investment.
• Speedy implementation of Projects.
• Environmental Clearance Policy to be Articulate.
• Co-ordination between Government Agencies.
• Short Tender Process.
 Meeting the needs of burgeoning
population.
• Indian population- 1.2 billion.
• Population places demand on infrastructure.
• Hence infrastructure faces pressure.
 Inhospitable Business Environment for
infrastructure investors.
• Plagued by certain problems like unpredictable
regulations, bureaucratic delays, struggles to secure
land rights, corruption, low transparency and labour
laws.
 Indiscriminate Urbanization.
• Rapid and unbalanced urbanization.
• 590 million people will shift to cities by 2030.
• This unbalanced growth puts a pressure on the
infrastructure and also leads to governance issues.
 Reforming Infrastructure Financing.

• Large funding gap in 12th 5 year plan.

(Rs.14,60,870 cr.)
• Hence immediate challenge to introduce
reforms in infrastructure financing.
 Attracting foreign investment.

• Ending of 12th year plan, 47% of infrastructure

share would be with private sector.
• New potential investments-
1. China.
2.Japan
3.US
 Speedy implementation of Projects.

• Infrastructure projects get delayed due to land

acquisition.
• Solution- Land acquisition be done by the
government prior to the project bidding stage and
project commences only after land acquisition.
 Environmental Clearance Policy to be
Articulate.
• Major roadblock- Government does not have clear
and well defined environmental clearance policy.
• Solution- Suitable bodies or independent consulting
companies should be fostered to help bidders get
clearance at a faster pace.
 Co-ordination between Government
Agencies.
• Currently 7-8 clearances are required to set up
power projects.
• Situations in other sectors equally grave.
• Takes about 1.5-2 years.
• Solution- Single window
clearance system with
specific guidelines for time
bound approvals.
 Short Tender Process.
• Reduction in time lag would reduce the project costs.
• Rise in material costs due to inflation would also be
controlled.
 Energy Policy Objectives
• Energy Access
• Energy Security
• Climate Change
 Energy Demand and Supply Situation
• 68% India’s population in rural areas.
• Increased population- Increased energy consumption
• Commercial energy supply- Dependant on fossil fuels.
• Renewable sources- Underutilized.
• Energy sector dominated by Public sec tor.
 Energy Mix
Coal Petroleum

Renewable
Energy Power
 Coal Energy
• Major source of energy in India.
• 31.03.13 – Estimated reserves – 298.94 billion.
• 40% of electricity worldwide is produced using coal.
• India is third largest producer of coal.
• It is the most controlled
sector as 90% is in the
hands of public
company.
1. CIL
2. SCCL
 Initiatives of Government for Coal
Sector

• The Coal Mines ( Nationalization) Act, 1973.

• Colliery Control Order 2000.
• New Coal Distribution Policy 2007.
 Challenges
• Poor Quality.
• Opencast Mining.
• Poor Infrastructure.
• Poor Technology
• Monopolistic Nature.
 Renewable Energy
• It is energy obtained from resources that are indigenous and
inexhaustible. Example –wind power, solar power, Geothermal
energy , tidal power and Hydroelectric power.
• It can be created without release of harmful pollutants.
• India has abundance opportunities for using solar, wind and
small hydro resources to produce Energy.
• India has land suitable to produce Bio Mass energy.
• These energy resources also helps in reducing Global threats of
Climate change.
• It will reduce country`s dependency on fossil fuels.
• Renewable resources are Diffused and Decentralised which
helps to satisfy energy needs of rural people and it will also crate
job opportunities.
 Share of Different Sources in Total
World Renewable Energy Consumption
SHARE OF RENEWABLE ENERGY CONSUMPTION IN
TOTAL ENERGY CONSUMTION 16.7%
Share of different sources in Total Renewable Energy Share%
Biomass Heat 11.44
Solar Hot water 0.17
Geothermal Heat 0.12
Hydro power 3.34
Ethanol 0.50
Bio Diesel 0.17
Biomass Electricity 0.28
Wind power 0.51
Geothermal Electricity 0.07
Solar PV Power 0.06
Solar CSP 0.002
Ocean power 0.001
 Core Drivers
1.Energy Security
2.Elecricity Shortages.
3.Energy Access
4.Climate change
5.Progress in India
 Growth of Renewable Power Generating Capacity
(Cumulative Capacity in MW)

Sector Beginning of X Plan Beginning of Xi Begining of Xii Plan

(April 2002) Plan (April 2007) (April 2012)
Wind 1628 7092 17352
Small Hydro 1434 1976 3395
Bio Power 389 1184 3225
Solar 2 3 941
Total 3453 10255 24914
 Government Initiatives
Renewable energy has been an important component of India`s
Energy planning Process since Quite some time .The importance
of renewable energy sources in the transition to a sustainable
Base was recognized in the early 1970`s.
 Setting up of Commission for Additional Sources of Energy
(CASE)
 Department of Non-Conventional Energy Sources(1982)
 Indian Renewable Energy Development Agency (IREDA)
 Ministry of Non –Conventional Energy Sources
 Ministry of New and Renewable Energy (MNRE)
 The National Solar Mission.
 Setting up of Commission for
Additional Sources of Energy(CASE)
• The two oil shocks in 1970 led to the establishment of CASE in
Department of Science and Technology in March 1981.
• This commission was charged with responsibility of Policy
formulation and their implementation programme for
development of new and Renewable energy
• It also helps in coordinating and intensifying Research and
Development in the sector.
 Department of Non-Conventional
Energy Sources (DNES)
• In 1982 a new Department was created in the Ministry of
Energy .
• It incorporated CASE.
 Indian Renewable Energy
Development Agency (IREDA)
• This was crated in 1987 to finance renewable energy
projects.
 Ministry of Non-Conventional
Energy Resources
• In 1982 DNES become Ministry of Non-Conventional
energy resources
• In october2006 this Ministry was Rechristened as the
Ministry of New and Renewable energy
• KEY OBJECTIVES;-
 promotion of deployment of Grid –interactive renewable power
generation projects.
 Promoting energy initiatives for:-
 Meeting energy needs of rural people
 Supplementing energy needs in urban areas industry and commercial
establishments.
 Research design and development
 Encourage development of a Robust manufacturing Industry.
• Functions:-
 Policy and regulatory framework
 Fiscal and financial incentives
 Human Resource Development
 Fostering International Cooperation
 Information , Publicity and Public Awareness
 Supporting Research and Development
 Undertaking resource assessment and Potential estimation
 Other special Incentives.
 The National Solar Mission
• Aims to promote the development and use of solar energy
for power Generation .
• OBJECTIVE:-
To reduce the cost of solar power generation through:-
 Large scale deployment goals
 Aggressive R and D
 Domestic production of Critical Raw material , components and equipments
• Schemes:-
 Scheme for setting up of over 300 MW of Grid connected Solar PV
power projects by Defence Establishments
 Scheme for setting up 1000MW of Grid Connected solar PV power
projects
 Scheme for setting up of solar parks and ultra mega solar power
projects
 Grid connected solar PV power projects
 Pilot-cum –demonstration project for development of grid
connected PV power plants
 Incentives offered by Govt. Of India
• For development of Solar Energy Sector:-
 Exemption from Excise duties and concession on import duty.
 A 10 year tax holiday
 Wheeling ,banking and third party sales , buyback facility by
states
 Guaranteed market
 GBI schemes for small solar projects
 Reduced wheeling charges
 Special incentives for exports from INDIA
 Loans at concessional rates
• For Biomass Power Projects:-
 80% claim of depreciation in the first year
 A 10 year income tax holiday
 Concession on custom duty and exemption from Excise duty
 Exemption from sales tax
 Financial incentives from IREDA
• For Small Hydro Power Projects:-
 Preferential Tarrifs
 Financial incentives
 Subsidy to upgrade watermills
 Custom duty concessions
 A 10 year tax holiday
 Challenges
• Land Acquisition
• Water shortage
 POWER
• Power is the main input in all the Economic activities be it
Agriculture , Industry or other commercial Business and is equally
important for Domestic Lighting
• India`s power sector is experiencing the Growth
• Power is the main source of energy and GOI is making many efforts to
improve this sector
POWER SECTOR OUTLAYS (crores)
PLAN PLAN OUTLAY ACTUAL EXPENDITURE %
Eight plan 79589 76677 96.3%
Ninth Plan 124225 114008 91.8%
Tenth Plan 205021 182380 88.9%
Eleventh Plan 473745 388531 82.0%
Twelfh Plan 960425 N.A. -
• Sources of Power in India :-
1. Thermal power
2. Hydro power
3. Renewable sources
4. Nuclear power
INSTALLED GENERATION CAPACITY (MW) FROM 2006-07 TO 2012-13
YEAR TOTAL CAPACITY THERMAL HYDRO RENEWABLES NUCLEAR
2006-07 132329 86015 34654 7761 3900
2007-08 143061 91907 35909 11125 4120
2008-09 147965 93725 36878 13242 4120
2009-10 159398 102454 36863 15521 4560
2010-11 173626 112824 37567 18455 4780
2011-12 199877 131603 38990 24503 4780
2012-13 223343 151530 39491 27542 4780
Within the Thermal sector coal has been a dominant fuel which
account for about 85%OF THERMAL POWER capacity share of diesel
is approx. 0.8% and gas been approx. 13%
INSTALLED THERMAL GENERATION CAPACITY (MW) from
2006-07 to 2012-13
YEAR total Coal (steam) Gas Diesel
2006-07 86015 71121 13692 1202
2007-08 91907 76019 14686 1202
2008-09 93725 77649 14877 1200
2009-10 102454 84198 17056 1200
2010-11 112824 93918 17681 1225
2011-12 131603 112022 18381 1200
2012-13 151530 130221 20110 1200
 Generation of Power in India
Source wise share in Total Generation in 2006-07 and
2012-13

sector 2006-07 2011-12

Hydro 113502(17%) 130511(14%)

Steam 461794(69%) 612497(66%)

Diesel 2539(0.4%) 2649(0.3%)

Gas 64157(10%) 93281(10%)

Nuclear 18802(3%) 32287(4%)

Renewable 9860(1%) 51226(6%)

 Initiatives by Govt.
1.Electricity (supply) Act ,1948 :-
To facilitate faster development of power Sector
and State Electricity Boards are set up at level to
ensure systematic growth of Power supply industry
across the country . It was set up to rationalise
production and supply of electricity and taking
measures conducive to electrical development.
2. Private Power Policy 1991 :
 Under this policy private companies were allowed to
invest in:-
 thermal projects
 Hydro projects
 Wind and solar projects
 Foreign Investors were allowed to invest in projects
with 100% ownership with Govt. Approval.
3.Liquid Fuel Policy , 1995 :-
o under this Policy Private Players were Permitted to set up
power projects using fuels like Naphtha and Fuel oil
o Focus was to encourage the use of liquid fuel in power
plants.
4.Policy for Renovation and Modernisation of
Existing Plants 1995:-
This policy was set up in order to modernise the Existing
plants both through Public and private investment , and for
modernisation purpose funds were also raised through
traditional funding like from financial institution and
external agency. The ownership of the renovated plant
remained with SEBs
5.The Electricity Regulatory Commission Act,1998 :-
 this act focused on the establishment of Central
Electricity regulatory commission at central level and State
Electricity Regulatory Commission at state level.
Commission has the power to determine and ratinalisation
of tariffs subsidies etc.
6.Hydro Power Policy ,1998 :-
 the aim was to accelerate the development of
Hydropower.
Idea was to set up vast Electric potential at faster pace with
supportive policies from the Govt.
Aimed at promotion of small and mini hydro projects for
remote areas
Strengthening the role of PSUs and SEBs in taking new
hydro projects.
7.Mega power policy ,1998:-
 its focus was on the development of projects with capacity
of 1000 MW and more ,which cater to the power needs of
more than one state.
These projects are known as mega power projects
Projects were awarded through competitive bidding
This policy was revised in 1998 and after that it offer some
fiscal incentives as well
Due to which it create interest in private players to enter
into mega projects so to avail different benefits .
8.The Energy Conservation Act,2001 :-
It was passed to enforce measures relating to energy
conservation :-
 Energy consumption standards
 Direct mandatory display of label
 Prohibit manufacture ,sale , purchase of notified equipment and
appliances not conforming to energy consumption Standards
 Notifying designated consumers
 Establishing norms and standards for designated consumers.
9.The Energy Conservation (Amendment) Act,2010:-
 The Central govt. May issue certificate to those Designated
Consumers whose energy consumption is less than the prescribed
norms and standards.
 The Designated consumers whose energy consumption is more than
prescribed norms and standards shall be entitled to purchase the
Energy Saving Certificate
 Prescribe the value of per metric ton of oil equivalent of enrgy
consumed.
10. The Electricity Act , 2003 :-
The main features of the act are as follows:-
 De-licensing of generation and permitted the captive generation
without restriction.
 Its also provides for the transmission , distribution and trading in
electricity with a license.
 The act empowered central Govt. To make region-wise demarcation
of the country
 The state govt. Required to unbundle State Electricity board
 Setting up State Electricity Regulatory Commission made mandatory
 An appellate tribunal to hear appeals against the decision of CERCs
and SERCs
 Metering of electricity supplied made mandatory
 Provisions related to theft of electricity become more stringent.
 Initiatives for Rural Electrification
1.Rural electrification under Minimum Needs Program (MNP):
It was started in 5th five year plan . Under this funds were provided as
Central assistance to the states in the form of partly grants and
partly loans.

2. Kutir Jyoti Scheme :

it was launched in 1988-89 to provide single point light connections
to households of rural families below the poverty line.

3.Pradhan Mantri Gramodaya Yojana (PMGY) :-

it was implemented in 2001-02 . Under this funds were provided to
the states as Additional Central Assistance.
4.Accelerated Rural Electrification Programme (AREP):
it was launched in the year 2003-04 . Under this interest subsidy of
4% was to be provided on loans availed by State Governments /
power Utilities from Financial institutions for carrying out rural
electrification program.
5.Accelrated Electrification of One Lakh Villages and One
crore households:-
it was launched in 2004-05 . Under this there was a provision for
providing 40% capital subsidy for rural electrification projects and
the balance as loan assistance on soft terms.
6.Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY):-
I was launched in April 2005 to provide Access to electricity to all rural
households plus rural electricity infrastructure . It also focused on
providing a free electricity connection for all the BPL households.
 Issues faced by Power Sector
1.Shortage of fuel
2.Delays in Clearances
3.Regional concentration of power Generation
4.Low operational Efficiency
5.Lack of Private Investment
6.Low tariffs
 GROWTH OF
TELECOMMUNICATIONS
SECTOR IN INDIA
TELECOMMUNICATION : exchange of
information using electronic means
• India has the second largest telecom network
in the world .
• This sector has grown at around 45 % per year
since 2006 .
• Intense competition in this sector due to the
entry of new players and expansion by existing
players .
 GROWTH OF TELECOMMUNICATION
SECTOR
• Origin of Indian telecom sector can be traced
back to 165 years .
• First operational land lines were laid by the
government near Kolkata { Calcutta}.
• In 1947 , after India gained independence ,
telecom companies were nationalised .
• Indian telecom sector was entirely under the
Government .
• In 1984, private sector was given an entry into
this sector but only in manufacturing
equipments.
• The actual evolution occurred when the
Government seperated the Department of
Post and Telegraph in 1985 by setting up
Department of Posts and the Department of
Telecommunications.
 GOVERNMENT INITIATIVES
• National Telecom Policy 1994
 NATIONAL TELECOM POLICY

• Was brought into existance to provide world

class services to people.
• For increasing the availability of landlines to
the people.
• To make telecommunication services cost
effective .
 KEY CHALLENGES
• Increasing consumer base
• Unclear regulatory environment
• Excessive competition
• Spectrum availability
• Creation of telecom infrastructure
 Presentation on Infrastructure
growth in transport sector

Submitted to : Submittedby Dr. Dr.

Nisha Aggarwal Divya joshi
 Introduction

• Transport sector is
important:

1 To facilitate agriculture and

industry.
2 for overall development of
economy.
3 for movement of men,
material and machines.
4 significant contribution to
GDP
Types of transport
 Road transport

• Principal means of transport

• It is the oldest means of transport
• It helps in developing the other means of
transport
 Road transport in India
India has the second largest road network in the
world
• National highways account for 1.7 % Of total
network in India
• Double-lane highways constitutes the largest
share of highways in India(40,658 km)
• As of April 2015, India has completed and placed
in use over 24000, kilometers of recently built
4or6 lane highways
 Merits of road transport

• Less capital outlay (cost of constructing, operating and

maintaining roads)
• Door to door service (warehouse to warehouse)
• Service in rural areas
• Flexible service (alternative ways, if an y road is blocked)
• Suitable for short distance
• Lesser risk of damage in transit
• Saving in packing cost
• Rapid speed
• Personal services(people have their own vehicles)
• Private owned vehicles (businessmen)
• Suitable for perishable goods
• Provides employment
• Feeder to other modes of transport
 Demerits of road transport
• Unsuitable for long distances
• Not suitable for heavy goods
• Irregularity (time is not fixed)
• Risky
• No uniformity in fairs
• Seasonal nature
• Slow speed
• Lack of organisation(irregular, different fair
prices, seasonal nature)
• Environmental concerns
 Issues in Indian transport

• Inadequate infrastructure
-majority roads are two-lane
-less flyovers, underpasses, bypasses, bridges etc.
- inadequate availability of alternative modes
 LANE
• A division of a road marked off with painted
lines and intended to separate single lines of
traffic according to speed or direction
Indian highways American HIGHWAYS
• Poor quality of roads
-unsurfaced (42.65%)
- deficiencies in national highways i.e.
inadequate capacity etc.
-
• Overloading
-no check on overloading of vehicles
- overloading is permitted by issue of
special token
• Lack of trained manpower
-lack of trained drivers
- easy availability of licences
• Lack of adequate parking space
Mixed Traffic
 Multiple check-posts
- causes abnormal delays
- no uniformity in rates of road taxes
• Lack of way side amenities
• Lack of private participation
• Lack of uniformity
• Roadside encroachment
 Higher fuel cost
Increased
- number of road
accidents
Polluting vehicles and fuels
RAIL TRANSPORT
IN INDIA
• Worlds largest passenger carrier
• Network spans more than 64,600 kms.
• 3rd largest in world
• Passenger traffic witnessed a CAGR of 5.2%
during 2008-13
• Freight traffic registered a marginally lower
CAGR of 4.9% in same period.
• Sector runs 12617 trains, carrying over 23
Million passengers daily connecting 7172
stations
• 7421 freight trains are run carrying about 3
million tonnes of freight every day
MERITS OF RAILWAYS

BETTER
DEPENDABLE ORGANISED

CHEAPER
MODE OF
TRANSPORT

IMPETUS TO GROWTH OF
AGRICULTURE MARKETS &
DEVELOPMENT SPECIALISATI
ON
 FLEXIBLE IN
CHECK ON THE TERMS OF
FLUCTUATIONS CARRYING
OF PRICES CAPACITY

MOST
HELPFUL IN
CALAMITIES

ENCOURAGEMENT
EMPLOYMENT
TO TOURISM
STRATEGIC STRONG
IMPORTANCE ENVIRONMENTAL
FOCUS

PUBLIC
SAFETY WELFARE
DEMERITS OF RAILWAYS

HUGE INFLEXIBLE
CAPITAL ROUTES
OUTLAY

LACK OF
DOOR TO
DOOR
SERVICE

UNSUITABLE
FOR SHORT
MONOPOLY
DISTANCE &
SMALL LOADS
BOOKING NO
FORMALITIES RURAL
SERVICES

UNSAFE FOR
UNDER-
FRAGILE
UTILISED
ITEMS
CAPACITY
 ISSUES AND CHALLENGES

INADEQUATE INFRASTRUCTURE
UNDER INVESTMENT
POOR SERVICE QUALITY
UNMANNED LEVEL CROSSINGS
CLEANLINESS AND CATERING
LAW & ORDER PROBLEMS
STIFF COMPETITION
LOW PRIVATE SECTOR
PARTICIPATION
LOW OPERATING EFFICIENCY
SOCIAL BURDEN
LAND ACQUISITION &CLEARANCES
ISSUES
NON- AVAILABILITY OF SEPARATE
PASSENGER &FREIGHT LINES
UNAUTHORISED VENDERS
HIGH TARIFF RATES
LIMITED NON-CORE BUSINESS
Allocation in union budget 2014-
15
Urban metro projects- Rs.100 crore for Lucknow
&Ahmadabad
Light rail systems in PPP mode- funding by
VGF(VIABILITY GAP FUNDING)
Diamond quadrilateral project of high speed trains
High speed bullet trains- Mumbai- Ahemdabad route
Freight corridors proposed on eastern and western
corridors.
Rail- road competition and co-
ordination
1. Causes of competition:
Flexibility of time table to suit individual
requirements
Provision for door to door services
No booking hassels
Lower operational costs
Freedom of movement due to availability of
multiple routes
Suitability for short distance
Unlike railways no social welfare obligations
etc..
2. Need for co-ordination:

To relieve severe traffic

To control increasing pollution
To check accidents
Limits & constraints to expansion of
existing road network
Ensure better returns on huge fixed
investment
Check on wastage
All-round development
 Measures adopted for
co-ordination:
1.MITCHEL KIRKNESS COMMITTEE
2.RAIL-ROAD CONFERENCE-1933
3.TRANSPORT ADVISORY COUNCIL-1935
4.MOTOR VEHICLE ACT,1939
5.COMMITTEE ON TRANSPORT POLICY AND CO-
ORDINATION-1959
6.NATIONAL TRANSPORT POLICY COMMITTEE-1980
7.THE STEERING COMMITTEE ON PERSPECTIVE
PLANNING FOR TRANSPORT DEVELOPMENT-1988
8.TRANSPORT POLICY DEVELOPMENT COMMITTEE-
2010
 AIR TRANSPORT IN
INDIA
The mobility of men and material by air is called air
transport. It is the fastest means of transport.
It is very useful for long distances and saves time.
The parliament passed the Air Transport Corporation
Act in 1953 under which the Indian Airlines
Corporation was to run domestic services and Air India
is to run external services
 TYPES OF
SERVICES

SCHEDULED AIR NON-SCHEDULED

AIR CARGO
TRANSPORT AIR TRANSPORT
SERVICE
SERVICE SERVICE
 Advantages of air transport
• Comfortable and quick Services
• Lesser Infrastructure Investment
• High speed
• Short and Direct Route
• Easy Access
• Emergency Services
•Most Suitable For Carrying high value but
light goods
•Promotes International Trade
•Promotes Tourism
• Very Costly
• Small Carrying Capacity
• Uncertain and Unreliable
• Breakdowns and Accidents/Risky
• Large Investment
• Specialised Skill
• Unsuitable for Cheap and Bulky Goods
• Legal Restrictions
 ISSUES IN AIR TRANSPORT

• Higher Fuel Cost than International Bench

Marks
• Higher Level of Taxes
• Non availability of skilled personnel
• Poor Intermodel Connectivity
• Price sensitive market
• High and growing debt burden
• India has too few airports
• Infrastructure
• Poor Aircraft Utilization
• Barriers to Entry
 WATER TRANSPORT
Water transport is one of the oldest means of
transport in India
Over the years, there has been a considerable
improvement in the construction, design,
motive power, speed, safety, etc.
Small cost is involved in the construction and
maintenance of waterways.
 TYPES OF WATER
TRANSPORT

INLAND WATER OCEAN

TRANSPORT TRANSPORT
 OCEAN TRANSPORT

COASTAL SHIPPING OVERSEAS SHIPPING

 MERITS OF WATER TRANSPORT

• Lesser Infrastructure Investment

• Cheap Mode
• Low operational cost
• Larger capacity
• Flexible service
• Suitable for heavy cargo
• Safe
• Fuel Efficient
• Environment Friendly
Useful during natural calamities
• Helpful in Defence
• Low Risk of Damage in Transit
• Generates Employment
 DEMERITS OF WATER TRANSPORT

• Slow Speed
• Affected by seasonal weather conditions
• Limited Area of operation
• Unreliable
• Risky
• Unsuitable for Perishable Goods
• Specialized Skill
• Legal Restrictions
• Affects Flora and Fauna
 ISSUES IN WATER TRANSPORT

• High Operational Cost

• Lack of Comprehensive Strategy
• Poor Port Governance
• Poor Rail Road Connectivity
• Financial Constraints
• Poor Incentives
• High Cost of Fuel
• Working age of ships
• Low Productivity
• Dual Governance