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HCS (Haryana)Stage 2: Main Written Examination

Infrastructure and Investment Models

What the official syllabus says

General Studies III (Main Written Examination, Paper V):

  • Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
  • Investment models.

Topics in detail

Infrastructure: concepts

  • Physical and social infrastructure; infrastructure as a driver of growth
  • National Infrastructure Pipeline (2019), National Monetisation Pipeline (2021)
  • PM Gati Shakti National Master Plan (2021) and the National Logistics Policy (2022)

Energy

  • Energy mix: coal, oil and gas, hydro, nuclear, solar, wind, biomass
  • Target of 500 GW non-fossil electricity capacity by 2030
  • National Solar Mission (2010), rooftop solar, solar parks
  • Green hydrogen mission (2023); biofuels and ethanol blending
  • Power distribution: losses of discoms, UDAY (2015), smart meters, open access
  • Nuclear power: India's three-stage programme
  • Energy security: oil imports and strategic petroleum reserves

Ports and waterways

  • Major and non-major ports; Major Port Authorities Act, 2021
  • Sagarmala Programme (2015): port modernisation and port-led development
  • National waterways and coastal shipping

Roads

  • National highways, State highways and rural roads
  • Bharatmala Pariyojana (2017); expressways and economic corridors
  • Pradhan Mantri Gram Sadak Yojana (2000)
  • National Highways Authority of India; electronic toll collection (FASTag)
  • Road safety

Airports

  • Airports Authority of India; private operation of airports
  • Regional connectivity scheme UDAN (2016)
  • Air cargo and maintenance, repair and overhaul

Railways

  • Dedicated freight corridors (Eastern and Western)
  • High-speed rail; semi-high-speed trains; station redevelopment
  • Metro rail and regional rapid transit systems
  • Railway finances and freight-passenger cross-subsidy

Other infrastructure

  • Urban infrastructure: Smart Cities Mission, AMRUT
  • Telecom and digital infrastructure: BharatNet, 5G
  • Water supply and sanitation

Investment models

  • Public investment, private investment and public-private partnership (PPP)
  • PPP models: build-operate-transfer (BOT toll and BOT annuity), build-own-operate, build-own-operate-transfer, design-build-finance-operate-transfer
  • Engineering, procurement and construction (EPC) contracts
  • Hybrid Annuity Model (2016) in highways
  • Toll-operate-transfer and asset monetisation
  • Viability Gap Funding; Swiss challenge method
  • Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs)
  • National Investment and Infrastructure Fund (2015); National Bank for Financing Infrastructure and Development (2021)
  • Committee on revisiting and revitalising PPP (2015): risk sharing, renegotiation
  • Issues: stalled projects, land acquisition, twin balance sheet problem

Main road-sector models compared

ModelWho finances constructionWho bears traffic riskHow the builder is paid
EPCGovernmentGovernmentContract payments during construction
BOT (toll)Private partnerPrivate partnerTolls during the concession
BOT (annuity)Private partnerGovernmentFixed annuities from the government
Hybrid Annuity ModelShared: 40% government, 60% privateGovernment40% during construction, the rest as annuities with interest
Toll-Operate-TransferAlready built by government; private partner pays an upfront sumPrivate partnerTolls during the concession

Overlaps

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