Production & Investment

Intermediate inputs for productive activities in industry
Electricity Water
Telecommunication Transport
Users are forced to invest in alternative sources such as captive power
plants and tube wells, thereby raising capital costs.
The expansion of service, high technology & financial sectors relative to
manufacturing industries increases the demand for telecommunications,
but decreases the relative requirements for industrial waste disposal and
transportation of manufacturing inputs and outputs.
The empirical relationship between infrastructure stocks & income per
capita has 3 important features.
1 The physical
measures of
infrastructure
Kilometers of paved roads
Kilowatts of electricity generating capacity
Number of telephones
2 Based on the co-integrating relationship, approach to estimating the long
run effect of infrastructure on GDP per capita can be found.
3 Generalization across different countries may not be possible.
As people become richer they may desire to have more infrastructures for
consumption purposes.
There is a need to allow each country to have own long run co-integrating
relationship between infrastructure and output.

The Social dimensions : Impact on Environment
Infrastructure’s linkages to the environment, as to poverty, are felt both
through its effects on the quality of life and on economic productivity.
Negative environmental impacts often result from a failure to take account
of interdependencies among infrastructure sectors.
o Under investment in sewerage relative to water supply in many places
has led to harmful contamination of water supply in May places has led
to harmful contamination of water reserves, exacerbated flooding, and
educed the health benefits from water investments.
o Poor management of solid waste and inappropriate disposal further
complicates wastewater disposal and urban street drainage.
Positive opportunities for synergies among activities in infrastructure &
other sectors to increase both environmental & economic benefits in urban
areas.
o Reclaimed landfill sites & wetlands used for sewage treatment can be
developed into recreational parks.
o Duckweed ponds can serve both as wastewater treatment & a source
of high quality protein feedstock for animals.
o Methane can be extracted from sewage treatment plants & from the
decomposition of organic matter in landfills and used as fuel.
o Composed from organic solid waste can restore soils & properly
treated municipal sewage.
o Wastewater can be used for irrigation.
o Recycling of municipal solid wastewater can reduce the requirements
for virgin raw materials, such as trees for pulp.

Profile of Environmental concerns in India
Health of ecosystem – measurements of the presence of pollutants in
India’s air (Such Suspended particles) and Water (Such as coliforms) and
indicators of the extent to which habitats are being degraded.
To integrate environmental considerations into decision making at all
levels, steps have to be taken to….
o Prevent pollution at source
o Encourage, develop & apply the best available technical solutions
o Ensure that polluter pays for the pollution & control arrangements
o Focus attention on heavily polluted areas & river stretches
o Involve the public in decision making
Six important conventions that have a direct bearing on the environment
protection and conservation.
1 CITES The Convention on International Trade in Endangered Species
2 The
Ramsar
The convention on Wetlands of International importance
Convention
3 The Convention on Climate Change
4 The Convention for Conservation Biological Resources
5 The Vienna convention / Montreal Protocol on substances that
deplete the ozone layer
In addition, India is also a party to the Rio Declaration on Environment &
development and Agenda 21.
The levels of air pollution in many regions have far exceeded permissible
limits, resulting in increased health risks & larger environmental threats
such as global warming & acid deposition.
CPCB – Central Pollution Control Board
Ambient air quality status in 1990 shows a maximum concentration
levels…
1) 1480 ug/m3 Delhi
2) 601 ug/m3 Kolkata
3) 306 ug/m3 Chennai
4) 474 ug/m3 Mumbai
The Central Pollution Control Board (CPCB) studies indicate that the
periods from April to June and Mid October to march are
environmentally critical for Delhi form the point of view of air pollution.