LOVELYPROFESSIONALUNIVERSITY
TR A N SF O R M IN G EDUCATION
I TR AN SF OR M ING IN DIA
A
PROJECT REPORT
ON
CASE STUDY
Bachelor of Commerce
Submitted
By
Aryan Dubey
P322 12204352
Under the Guidance of
Dr. Blessay Sarah
Mathew
Associate Professor
Mittal School Of Business
Lovely Professional University
Phagwara Jalandhar, Punjab
`
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LOVELY PROFESSIONAL UNIVERSITY
School of BUSINESS Faculty of BUSINESS AND ARTS
Name of the Faculty member Dr. Blessay Sarah Mathew
Course Code: ECO113
Course Title : Business Economics
Academic Task:
Academic Task Title: ONLINE ASSIGNMENT
01
Date of Allotment: 09/02/2022
Date of Submission:23/02/2022
Student Roll No. RQ2218A15
Student Reg. No: 12204352
Term- II
Section : Q2218
Max. marks : 30
Marks Obtained :
Evaluation Parameters
Learning Outcomes – While doing this project I develop a lot of
knowledge and collect lot of information from multiple sources and develop the
application of conceptual learning in a real-time environment. While doing this
report I able to identify and interpret the analytical skill on the share capital of
the company.
Declaration:- I declare that this assignment is my individual work. I have not
copied it from any other students work or from any other source except where
due acknowledgement is made explicitly in the text , nor has any part been
written for me by any other person.
Evaluator’s Comments (For Instructor’s Only)
General Objective
Best Part of Assignment
Suggestion for
Improvement
Evaluator’s Signature and Date
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CERTIFICATE
This is certify that ARYAN DUBRY , B.COM Semester-II ,
Registration No. 12204352, Home Section – Ǫ2218 , Session2022-2025 , in the department of Commerce in Lovely
Professional University , has successfully completed the projecton
Under the guidance of PROF. Dr.Blessay Sarah Mathew
I appreciate his skill diligence and senseof
commitment in preparation of this project . The project work has
been submitted as partial fulfillment of the degree of B.com Of
Lovely Professional University , Jalandhar Punjab.
This project has been prepared exclusively for academicpurpose ,
hence it shall not be used for any kind of non academic purpose
what so ever.
Signature :
Place:
Date:
Dr. Blessy Sarah Mathew
Assistant Professor
Lovely Professional University
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“Imagine life in the absence of the means of transport and communication ;imagine life in the absence
of educational institutes , hospitals and nursing homes ;imagine life in the absence of electricity or oil
and diesel!”
Absence of these things would only drive us to the primitive age when production was just for
subsistence .Production activity did not yield surplus for growth and development.
It is because of infrastructural facilities that different states in the country are specialising in different areas of
production activity. Punjab ,Haryana , excel in agriculture because of irrigation facilities whereas
readKarnataka is hub of technology.
But after all these discussions we know infrastructure is most vital for our economy but a question arises
What is Infrastructure ?
Infrastructure refers to support system of economic and social development of a country without which
economic growth and social development are not possible.
Infrastructure is broadly categorised as
1.Economic infrastructure
and
2. Social Infrastructure
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SIGNIFICANCE OF INFRASTRUCTURE
According to Dr V. K. R. V. Rao, “The link between infrastructure and development is not a once for
all affair. It is a continuous process and progress in development has to be preceded, accompanied and
followed by progress in infrastructure; if we are to fulfil our declared objectives of a self-accelerating
process of economic development”.
Discussed below are some of the most critical significance of economic infrastructure and its impact on the
economy.

The smooth functioning of the economy. Infrastructural facilities are very necessary and vital for the
smooth functioning of the economy. They are like wheels of development without which the economy will
not be able to function properly.

Development of agriculture. The development of agriculture, to a considerable extent, depends on
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the adequate expansion and development of irrigation, credit, transport, power, marketing, training and
education. It also depends on the improvement of research and development and other such facilities.

Development of industry. Industrial production requires not only machinery and equipment but also
requires the following. Energy, skilled manpower, management, banking, insurance and transportation
services are crucial. These activities and facilities will directly lead to the development of the industrial sector
of the economy.

Promotion of investment. Infrastructural development is definitely a pre-condition got increasing
economic investments. Those areas with the sound infrastructural base may succeed in attracting all the more
capital for investment.

Improvement in productivity. Infrastructural development such as transportation facilities and
education increase the productivity. Development of science and technology is also important in improving
the economic productivity. Moreover, research and development also play a critical role in economic
improvement.

Employee generation. Infrastructures play a crucial role in the generation of employment
opportunities. They improve mobility, efficiency and productivity of labour. Moreover, larger investment,
development of industry and agriculture create all the more employment opportunities.
Some of the secondary but essential significance of the economic infrastructure are as follows.

Development of backward regions. The development of backward regions and the removal of
regional imbalances is yet another significant contribution of infrastructural facilities. The lack of
infrastructural facilities in the backward regions will act as a constraint on the development of those regions.

Social change. Infrastructural facilities will also act as an instrument of social changes. Development
of industries, transport facilities and education will change the outlook of people. Apart from these, even
science, technology and growth of towns and cities will lead to a changed economic outlook.

The growth of GDP. There exists a very close relationship between spending for infrastructure and
GDP growth. Studies reveal that 1% growth in the stock of infrastructure often associates with 1% growth in
per capita GDP.

All round development/Overall development. Infrastructural development is important not only for
economic growth but also for the overall development. The all-round development of the country and
economy is crucial. Infrastructural facilities are also necessary for technological innovation. Along with
technological innovation, economic infrastructural facilities are also important for the eradicating poverty and
enhancing globalization.
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GOVERNMENT INITIATIVES AND INVESTMENTS
Some of the recent government initiatives and investments in the Infrastructure sector are as follows:

In Union Budget 2022-23:
o
The government has given a massive push to the infrastructure sector by allocating Rs. 10 lakh
crore (US$ 130.57 billion) to enhance the infrastructure sector.
o
The government allocated Rs. 134,015 crore (US$ 17.24 billion) to National Highways
Authority of India (NHAI).
o
The government announced an outlay of Rs. 60,000 crore (US$ 7.72 billion) for the Ministry
of Road Transport and Highways.
o
The government announced Rs. 76,549 crore (US$ 9.85 billion) to the Ministry of Housing and
Urban Affairs.
o
The government allocated Rs. 84,587 crore crore (US$ 10.87 billion) to the Department of
Telecommunications to create and augment telecom infrastructure in the country.
o
The total revenue expenditure by Railways is projected to be Rs. 234,640 crore (US$ 30.48
billion)
o
100 PM-GatiShakti Cargo Terminals for multimodal logistics facilities will be developed over
next three years.
o
Focus was on the PM GatiShakti - National Master Plan for multimodal connectivity to
economic zones. Everything, from roads to trains, from aviation to agriculture, as well as many
ministries and departments, will be integrated under the PM GatiShakti National Master Plan.
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As per study of above case , we came across to the challenges which are there which acts
as obstruction in establishment of an effective infrastructure . Some of the challenges are
as following:
It has been observed that the growth of urban infrastructure does not match with the growth of urban
population. Some striking facts about the challenges of urban infrastructure are as follows:
 Status of drinking water supply, public transportation, sewage and solid waste management is much
lower than desired.

No city has fully covered 24×7 water
supplies.

Only 74% of the house-holds are served by piped water.

Only 65 of 423 class I cities have a formal city bus service in 2012.

Only 30% cities have sewage treatment as against desired 100%.

7% urban population has access to the piper sewer system.

6% urban population still defecates in the open.

Only 72% of the solid waste is collected and only 30% is segregated. Scientific treatment and disposal
is non-existent.

24% urban population lives in slums.
Challenges in Economic Infrastructure
Financing
Infrastructure projects are highly capital intensive and funding is considered as a
major impediment in achieving the infrastructure goals. The infrastructure broadly
can be divided into two types, one which is very essential for the public at large and
have no or very little revenue potential and other which has handsome revenue
potential. The first kind of infrastructure must be totally government financed
whereas the later can be developed on PPP mode. Since resource constraints will
continue to limit public investment in infrastructure, PPP-based development needs
to be encouraged wherever feasible.
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Land Acquisition
Another significant challenge in achieving the infrastructure goal is the way
land acquisition is done for infrastructure projects. Compensation fixed in
terms of registered value is always the bone of contention. There is always a
substantial difference between the compensation offered and the actual value
of the land. The land owners always feel aggrieved which results in dispute
and litigation.
However, The Land Acquisition and Rehabilitation & Resettlement Bill
would be able to tackle this issue of land acquisition favourably.
Clearances from numerous agencies
Most of the infrastructure projects in India suffer from delays in completion.
This is mainly due to an inadequate regulatory framework and inefficiency in
the approval process. Infrastructure projects require multiple sequential
clearances at various levels of government. There are various approvals needed
at every stage which definitely delay the infrastructure projects.
Environmental Impact Assessment (EIA)
Environmental safeguards and guidelines have proven to be one of the major reasons
for delay in infrastructure projects, especially in the power sector. While new
projects need to comply with these regulations, even a project under construction
may need to comply with revised standards midway through the execution stage.
Poor pre-construction planning
Due to the already adverse effect of various impediments like land acquisition,
statutory approvals, delayed financial closure, etc. the pre-construction phase of
infrastructure projects is pretty long. Therefore, there is delayed commissioning
and completion of projects.
Corruption
In country like India we can see that many of the politicians and workers are
corrupted . Huge amount of investment is bagged by them before or while the
construction of any kind of monument , building , roads etc.
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Important steps are required for the Indian Infrastructure Sector. Firstly, we need to setup an independent
regulatory body like SEBI for infrastructure. The primary role of this body would be to attract private
investments and protect the investor from various risks. Secondly, we need to have an authority which should
take care of sovereign obstacles. The basic role of this body will be to remove the obstacles for public projects
and monitor the development of the project.
The new PPP (Public Private Partnership) model has a lot of potential to carry out various infrastructure
projects and provide better infrastructure for each sector. Success stories of Gujarat Solar Innovative Project,
Delhi Metro Rail Project showcase the power of PPP.
1. Identify where government is needed and areas where the private sector is better positioned.
The government needs to play a role in developing infrastructure, from limiting impacts on public health
and the environment, to providing the capital for projects that are not attractive to private investors. In
other areas, market forces can help shape better outcomes. For instance, private companies tend to
structure projects in a way that maximizes the chances of success in terms of customer satisfaction and
financial viability. Conversely, misplaced public-sector intervention can have negative consequences, as
in the case of diesel-fuel subsidies in India.
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2.Consider a distributed model for infrastructure projects.
Announcing large projects may make good headlines but the outcomes tend to fall short of expectations.
Infrastructure development must meet the needs of local communities, and requires effective implementation
on the ground. This is difficult to achieve with a centralized model. Projects designed with a local focus may
seem less impressive but, put together, they have the potential to change people’s lives faster – in months, not
years. An example would be the installation of solar panels on houses and buildings, rather than bringing a
reliable electrical grid to remote villages.
3. Go straight to the finish.
India is less burdened by legacy infrastructure and has the opportunity to select innovative courses in
development; the country can become a fast adopter of new technologies. For example, distributed energy and
solar power are on a path to expanding power generation in India. They also reduce the need for a centralized
grid and can help the country contribute to the global effort to reduce greenhouse gas emissions. India has the
opportunity to benefit from large economies of scale brought about by a massive build-up of solar-panel
production capacity in recent years.
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4. Focus on getting the project right, not on attracting investment.
India’s savings rate is high, insurance companies and pension funds are eager to invest in infrastructure,
international investors and multilateral development banks are also ready to contribute. What India is missing
is well structured projects and transparency. Its high long-term sovereign rates are a hurdle. Corruption is a
major problem: it cannot be mitigated, it must be eliminated. Anything short of that would be cheating the
Indian people from the benefits of economic growth and development.
5.Make the investment now and reap the benefits in the decades ahead.
Many infrastructure projects will require a significant upfront investment but will yield savings over the long
term. This is particularly true for renewable energies. India is currently spending giant sums on importing
fossil fuels. By leveraging its renewable energy potential, the country could reallocate these financial
resources to other areas of the economy. To support the development of renewables, novel payment schemes
for investors should be considered, such as payment in kind. Here, solar panels could be exchanged for the
diesel or coal that they substitute, priced at market, not subsidized, rates.
There is no easy fix for India’s infrastructure situation. By some estimates, $200 billion a year would be
needed to tackle the problem. The nation’s savings rate is high and could be mobilized to meet that goal. Also,
international investors are eager to invest in the country. But “more of the same” will not cut it when it comes
to bringing electricity and sanitation to hundreds of millions. A fundamental shift must occur in the way the
country looks at developing its infrastructure, and financing it.
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Opinion by Prabhjot Kaur
“Infrastructure sector is a key driver for the Indian economy. The
sector is highly responsible for propelling India’s overall
development and enjoys intense focus from Government for
initiating policies that would ensure time-bound creation of
world class infrastructure in the country. Infrastructure sector
includes power, bridges, dams, roads, and urban infrastructure
development. In other words, the infrastructure sector acts as a
catalyst for India’s economic growth as it drives the growth of
the allied sectors like townships, housing, built-up infrastructure
and construction development projects.
In order to meet India’s aim of reaching a US$ 5 trillion economy
by 2025, infrastructure development is the need of the hour.
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Opinion by Asiya
“With limited resources and mounting needs, it is crucial that
investment in infrastructure systems yields long-term
development gains for all.
Infrastructure makes other things possible. It is the stuff we take
for granted, that we notice only when it breaks down. The
infrastructure of driving is roads and bridges and gasoline
pipelines. The infrastructure of the digital economy is glass
cables and silicon chips and millions of lines of code.
To meet the infrastructure needs of the ever-growing population
and keep check on the environmental impact of the development,
India needs to rapidly shift towards sustainable infrastructure
development.
Infrastructure development is arguably the most important
factor in the growth and development of any modern economy.
It is estimated that India can add another 2% to its GDP growth
by creating adequate infrastructure. Infrastructure development
not only connects the different regions and market of the country
it also creates jobs, provide clean water and electricity, uplift the
living standard and makes health and education available to
all.”
Opinion by Aryan
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Opinion by Nirman
Opinion in infrastructure in India
• Indian culture thinking is very narrow minded, they always thing
his/her own benefits.
• When Indian government makes road or construction Indian
peoples has always objection
• Whenever government project came, the budget which gave to
politician or tender or MP
they take maximum money and utilize for its own benefits.
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