nd str and n rastr             t re         9.27
     the Government in India has always given priority            (ii) Introduction of road user charges (either
     to the developmental aspects of the sector. But the                  directly via tolls or indirectly via a cess on
     level of preparedness and performance had been                       petrol diesel), and
     always less than required by the economy. Which             (iii) Rationalisation of railway fares.
     sector are called the infrastructure? Basically,              Experts60 have suggested for expanding
     the goods and services usually requiring                public investment in the sector supplemented
     higher investment, considered essential for the         duly by a vigorous effort of attracting private
     proper functioning of an economy is called the          investment (domestic as well as foreign). Creating
     infrastructure of an economy.58 Such sector might       the conducive environment to attract private
     be as many as required by a particular economy          investment in infrastructure should include:
     such as power, transportation, communication,                  (i) Simplification and transparency in the
     water supply, sewerage, housing, urban amenities,                    clearance procedures;
     etc.                                                         (ii) Unbundling an infrastructure project so
          There are three sectors which are considered                    that the private sector may go for only
     as the infrastructure universally around the world                   those unbundled segment of the project
     namely power, transportation and communication.                      whose they are able to bear; and
     Since, infrastructure benefits the whole economy,           (iii) Providing credible and independent
     it has been often argued by the economists that                      regulatory framework so that the private
     the sector should be funded by the government by                     players get fair treatment.
     means of taxation, partly not wholly.
          Indian infrastructure sector is clearly            officiAl iDeology
     overstrained        and       has      suffered    from Putting in place the quality and efficient
     underinvestment in the post-reforms period.59           infrastructure services is essential to realise the
     Infrastructure bottlenecks are always constraint in     full potential of the growth impulses surging
     achieving a higher growth for the economy. India        through the Indian economy. There is now a
     needs massive investment, both from the public          widespread consensus61 (now clearly accepted
     and private sectors, to overcome infrastructure         by the Planning Commission) that exclusive
     bottlenecks. Investments by the public and private      dependence on the government for the provision
     sectors are not alternatives, but complimentary to      of all infrastructure services introduces difficulties
     each other as the required investment is very high.     concerning adequate scale of investment, technical
     Public investment in the sector depends upon the        efficiency, proper enforcement of user charges,
                                                             and competitive market structure. At the same
     ability to raise resources (capital) in the public
                                                             time, complete reliance on private production,
     sector and this in turn depends upon the ability
                                                             particularly without appropriate regulation, is
     to collect the user charges from the consumers.
                                                             also not likely to produce optimal outcomes.62
     To make this happen following three factors are
     extremely important:                                         .    One of such major suggestion was forwarded by
                                                                       Sachs, Varsheny and Bajpai, India in the Era of Economic
           (i) Reform of the power sector,
                                                                       Reforms, p. 79.
       58.    Oxford Dictionary of Business, ew elhi xford     61. Ministry of Finance, Economic Survey,                 , ew
               niversity ress,      .                                    elhi overnment of ndia,               .
       59.    India Infrastructure Report 1994.      ew elhi   62. India Infrastructure Report 2007                 ew elhi
               overnment of ndia,      .                                 overnment of ndia,           .