The World Development Report 1994, published by World Bank under the title “Infrastructure for Development”, rightly states that “Infrastructure represents, if not the engine, then the “Wheels” of economic activity. It can deliver major benefits in economic growth, poverty alleviation and environmental sustainability-but only when it provides services that respond to effective demand and does so efficiently” (World Bank, 1994). Economic Development of any country, along with other factors, also depends on the infrastructure development. Quantity and Quality of infrastructure is a sign of development and prosperity of a country. Government of India has realized the importance of infrastructure development since the inception of planning process. Various projects for the development
of infrastructure, both Physical and social, is given due consideration in five year plans in India. India’s rise in recent years is a most prominent development in the world economy creating favorable conditions for growth. India has re-emerged as one of the fastest growing economies in the world. India’s economic growth, particularly in increasing investment and sound macroeconomic fundamentals, the future outlook for India is distinctly optimistic. According to many commentators, India has potentials to increasing economic growth, provided it improves the infrastructure facilities, which are at present not sufficient to meet the growing demand of economy. Failure to improve the infrastructure in the country will government’s first priority is rising to the challenge of maintaining and managing high growth through investment in infrastructure sector, among others. Ramping up investment in infrastructure is not only critical for India’s growth and to sustain the country’s battle against poverty but also to lay the foundations for stronger economic growth in the future. The Eleventh Plan emphasized the importance of investment in Infrastructure for achieving the sustainable and inclusive growth of 9 per cent to 10 per cent in GDP. India has also invested in a wide range of infrastructure sectors including hydroelectricity, power transmission lines, road construction, telecommunications etc.