Policy Reform Progress in India to Date Sample Clauses

Policy Reform Progress in India to Date. 1. The policy reform agenda for the infrastructure sector in India has been driven by a two- fold objective. In the first instance, the objective is to undertake reforms to facilitate private sector participation either via wholly private sector companies or via PPP type initiatives. Thus, the reforms seek to follow international best practices in the Indian context to (i) ensure long- term stability of cash flows; (ii) reduce regulatory risk; (iii) optimally allocate risk and determine commensurate returns. In the second instance, the reforms have been driven by the need to channel financing to the sector through a mix of credit enhancement mechanisms, providing the market with ‘risk capital’, corporate bond market development, and incentivization. The table below provides a snapshot of the infrastructure policy reform framework undertaken on a subsector wise basis. Sector Reforms Undertaken Roads and Highways • In order to specify the policy and regulatory framework on a fair and transparent basis, a Model Concession Agreement (MCA) for PPPs in national highways has been mandated. • Foreign Direct Investment (FDI) of up to 100 % permitted in road sector. • A National Highway Development Program (NHDP), involving a total investment of $56 billion up to FY2011-2012, has been established. • National Highways Authority of India (NHAI) is the apex government body for implementing the NHDP. All contracts, whether for construction or BOT, are awarded through competitive bidding. • To attract private investment in road development, maintenance, and operation, the National Highways (NH) Xxx 0000 was amended in June 1995. − Private parties can invest in the NH projects, levy, collect, and retain fee from users and is empowered to regulate traffic on such highways in terms of the provisions of the Motor Vehicle Xxx 0000. • According to industry status accorded to road sector (Infrastructure as defined under in Section 18(1)(12) of the Infrastructure Act includes roads). Indian Railways • Enhanced wagon utilization in FY2001–2005. − Per unit cost of freight reduced from 61 paise per net tonne kilometer (ntkm) in FY2000-2001 to 56 paise per btkm FY2004-2005. • Indian Railways (IR) entered into agreement with Container Corporation of India to run freight container trains on guaranteed transit times. Introduced roll–on roll–off services on Konkan Railways, tied-up with the Central Warehousing Corporation to provide more value-added services as well as door-to-door tran...
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