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7) Investment in airports and roads has seen an upswing in recent years. Examine the reasons and discuss the challenges going forward?(250 words)

Topic – Infrastructure.

7) Investment in airports and roads has seen an upswing in recent years. Examine the reasons and discuss the challenges going forward?(250 words)

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Why this question

The article discusses the improved investment outlook for roads and aviation sector and the challenges ingrained therein. This article would enable us to be aware of the recent developments in boosting infrastructure and be aware of the challenges therein.

Key demand of the question

The question expects us to bring out the fact that investment potential of roads and airports have improved and discuss how this improvement has been brought about. Thereafter we need to bring out the challenges that need to be taken into account going forward and discuss the way forward.

Directive word

Examine – When you are asked to examine, you have to probe deeper into the topic,  get into details, and find out the causes or implications if any .

Structure of the answer

Introduction – Highlight that India’s roads sector has turned more attractive for investments in the recent past. Now, airports, too, are becoming so, after a raft of initiatives by the government.

Body

  • In case of roads discuss the reason why roads have attracted more investment off late
    • Highlight the changes made in investment model in case of roads
    • Discuss the roadblocks that have been erased which has ensured that the pace of such construction has increased etc
  • Discuss the reasons why investment in airports has also improved
    • Potential of the aviation sector in India
    • Privatization of airports etc
  • Discuss the challenges going forward for airports
    • The government should make sure that all the land required for development is made available at the bidding stage itself.
    • It should provide an easier exit option on achieving the commercial operations date. Etc
  • Discuss the challenges going forward for roads
    • About 50% of all projects awarded in fiscal 2018 are under HAM. Given the challenges in terms of budgetary resources, the time is ripe for getting built-operate-transfer (BOT) back in the fray
    • Address the banking sector’s concerns over funding of HAM projects. Etc

Conclusion – Give your view and discuss the way forward.