Highlighting the need for urgent reforms in the infrastructure sector, the Economic Survey for 2005-06 points towards the need for a single energy regulator that cuts across line ministries.
The Survey, which highlights the importance of reforms in the mining and coal sector also calls for the creation of a coal mining company engaged in captive mining to sell excess coal to any other eligible end-users.
Citing examples of roads and telecom that are relatively success stories in the infrastructure sector, the Survey singles out the urgent need for reforms in the power sector and says that the country stands to lose around Rs 30,00,000 crore every year on account of power deficits in the country. In the telecom sector, the Survey says that mobile phones are no longer seen as a luxury item.
The Survey reiterates that initiatives such as public-private partnerships and the new finance company—Indian Infrastructure Finance Company—would be useful in expediting investment flow into the crucial infrastructure sectors.
Urban infrastructure gets special mention in the Survey as the Jawaharlal Nehru National Urban Renewal Mission specifically aims at easing the strain on urban centers on account of rapid urbanisation being witnessed in the country. For instance the mission aims at addressing problems related to equitable distribution of drinking water.
In civil aviation, as per the Survey, the next policy initiative is to set in place an airport economic regulator that would be responsible for tariff setting as well as for monitoring of performance standards.