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Infrastructure & Investment

Indian Economy

Useful for: UPSC Civil Services

हिंदी में पढ़ें

Overview

Infrastructure is financed through public investment, public–private partnerships and market instruments, with planning frameworks to coordinate projects.

Key points

  • EPC: government funds; contractor designs and builds.
  • BOT/BOOT: private partner builds, operates (and owns) for a period, then transfers.
  • Hybrid Annuity Model: the government pays about 40% of project cost during construction and the rest as annuities.
  • InvITs (for infrastructure assets) and REITs (for real estate) are regulated by SEBI.
  • National Infrastructure Pipeline (2019) and PM Gati Shakti National Master Plan (2021) coordinate investment.
  • NaBFID (2021) is a development finance institution for infrastructure.

Practice MCQs

  1. From the perspective of definition and scope, which one of the following statements about Infrastructure & Investment is correct?

    1. Every public-private partnership automatically transfers all project risks to the private partner.
    2. Infrastructure & Investment is unrelated to institutions, processes or real-world applications.
    3. Infrastructure & Investment has no exceptions or limitations in exam analysis.
    4. Infrastructure can reduce transaction costs and crowd in private activity when projects are well designed.

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    Answer: (d) Infrastructure can reduce transaction costs and crowd in private activity when projects are well designed.. Infrastructure can reduce transaction costs and crowd in private activity when projects are well designed.

  2. Consider the following statements on Infrastructure & Investment, focusing on definition and scope: 1. Every public-private partnership automatically transfers all project risks to the private partner. 2. Infrastructure can reduce transaction costs and crowd in private activity when projects are well designed. Which of the statements given above is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2

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    Answer: (b) 2 only. Statement 2 is correct; Statement 1 is a common misconception.

More topics in this chapter

Notes and questions are written by Kundali IQ for practice. They are not official papers; always check the latest official notification for the syllabus and pattern.