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> Policies> economic survey 2000-01
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Economic Survey 2000-2001
[Review of Developments]
Supply Side: Production
Infrastructure
1.35 The performance of infrastructure in the current year is mixed. There is a significant deceleration of growth rate in electricity generation. Among the other infrastructure sectors, there is deceleration of growth rate for cargo handled at major ports from 9.2 per cent in April-December 1999 to 3.9 per cent in April-December 2000 and for revenue earning goods traffic on railways from 8.0 per cent in last year to 5.2 per cent this year. However, the growth rate of new telephone connections increased significantly from 33.4 per cent last year to 29.8 per cent this year
1.36 The average growth rate of six core and infrastructure industries (i.e. electricity, crude oil, refinery, coal, steel, and cement), having a weight of 26.7 per cent in overall IIP, at 7.7 per cent in April-December 2000 is lower than that of 9.1 per cent achieved in April-December 1999. Petro-refinery production has improved its growth rate from 22.0 per cent in April-December 1999 to 25.9 per cent in April-December 2000. While steel and coal have performed well in the current year, performances of electricity and cement are poor.
1.37 Various policy measures were announced for boosting infrastructure growth during the current year. These include :
Opening of domestic long distance service without any restriction on the number of operators.
Permitting BSNL and MTNL to enter as third cellular operator in their respective circles.
Introducing a revenue sharing regime in place of existing fixed licence fee for both basic and cellular service operators.
Permitting the operation of a fourth cellular operator in all the circles.
Permitting an additional basic service operator.
Developing a scheme for securitisation of dues of central sector power and coal utilities for assisting the SEBs in clearing dues. Central Government support is linked to reforms in the operation of SEBs.
Proposal to divest Government equity in domestic carrier, Indian Airlines and international carrier, Air India.
Decision to upgrade to international standards the airports at Hyderabad, Ahmedabad, Goa, Kochi and Amritsar.
Reduction of customs duty for boosting infotech, telecom and other knowledge based industries.
Extension of tax benefits available for infrastructure to urban infrastructure viz. water treatment and solid waste management.
Extension of tax holiday for housing projects to projects completed before 31.3.2003 (present limit 31.3.2001).
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