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Land Acquisition and Clearances:
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- Delays in land acquisition and clearances affect infrastructure sectors.
- Issues with onboarding digital land records.
- Greenfield airport projects face time-intensive processes due to site selection and approvals.
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Skill Demands:
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- Limited technical knowledge in aviation sectors like MRO operations and manufacturing.
- Specialized skills needed for project development and management.
- Effective public-private partnerships are essential for skill development.
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Private Sector Participation:
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- High capital investment and long payback periods deter private involvement.
- Project structuring issues, delays in clearances, lack of independent regulators, and contractual issues impact participation.
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Climate and Environmental Sustainability:
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- Aviation sector faces compliance challenges with CORSIA from 2027.
- No ICAO-approved emissions unit programs in India.
- Cost of sustainable aviation fuel is significantly higher than fossil fuel.
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Aggregation of Financial Flows:
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- Complex financing structure with multiple stakeholders and instruments.
- Inconsistent reporting formats and sectoral splits make aggregation difficult.
- Lack of comprehensive data on capital expenditure and fund flows.
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Monitoring Infrastructure Progress:
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- No single source for tracking physical progress of infrastructure projects.
- Coordination needed between central, state governments, and project authorities to evaluate progress.
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Conclusion and Outlook
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- Infrastructure Growth: India has seen transformative changes in infrastructure with significant advancements in road, rail, air connectivity, sanitation, and digital infrastructure.
- Public Sector Dominance: Between FY19 and FY23, Central and State Governments contributed 49% and 29% of total infrastructure investments, respectively, while the private sector contributed 22%.
- Private Sector Role: Increased private sector financing and innovative resource mobilisation, like pooled financing and asset recycling, are crucial for sustaining infrastructure development.
- Data and Reporting Improvements: Enhanced data capture and reporting mechanisms are needed to track infrastructure demand, utilisation, and financial flows across sectors and instruments.
- Database Consolidation: Developing a unified mechanism for consolidating infrastructure data and financial flows, with regular updates and sectoral bifurcation, will aid in better policymaking and resource allocation.
