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Blazing a Trail in Infrastructure Management Education in India
Infrastructure and economic development
The Planning Commission has set an ambitious double-digit national economic growth rate in the 11th five-year plan. How do we go about following this tall order? There is now consensus that the answer lies primarily in building high-quality infrastructure – physical, social and economic. How the interstate highway system started in the ’50s by the Eisenhower administration helped make America more mobile and vastly wealthier is now legendary. Back home, in India, we have the classic case of the Grand Trunk Road built by the 16th century ruler Sher Shah Suri to promote trade. The 2000 km stretch of the Grand Trunk, connecting six Indian states, still serves as the backbone of commercial prosperity across India.
Many past studies have shown that expansion of rural infrastructure contributes to economic growth and decline in poverty. According to the rural infrastructure report published recently by NCAER, the development of rural infrastructure has a fivefold impact on the economy. Better infrastructure creates better access to employment and provides more earning opportunities;
Increases production efficiency; gives access to previously inaccessible goods and services; helps citizens to save time and thus engage themselves more in productive activities; and
Improves health and physical condition of rural people.
Economic liberalization ushered in a new era of infrastructure-centric governance in India. The government has already created a transparent and independent regulatory framework for the infrastructure sector based on international best practices. A committee has been formed under the chairmanship of the Prime Minister to monitor the progress of all major infrastructure projects on a quarterly basis. A Viability Inter-Grant Scheme has been set up to support economically viable but economically unviable infrastructure projects (such as power, roads, ports, airports, railways, water supply and urban transport). A special purpose vehicle (SPV), called the India Infrastructure Finance Corporation Limited (IIFC), has been set up to lend funds to commercially viable projects in the infrastructure sector with long-term maturity, including projects that become viable after receiving viability gap funding from projects. Government. A comprehensive Model Concession Agreement (MCA) framework for Public Private Partnerships (PPPs) is either in place or has been created for the highway, port and airport sectors. These MCAs, based on internationally accepted principles and best practices, unbundle risks and costs, and allocate them to the party best suited to manage them. The rail container movement, hitherto monopolized by a public sector entity, CONCOR, has been opened up to competition, making private sector entities eligible to own and operate container trains.
Today, sectoral policies at national, regional and local levels are being developed around ‘touchstone’ principles, such as: (1) efficient use of existing assets and optimal allocation of surplus resources, (2) payment for services, (3) equity. contract structure, (4) transparency of procurement process, (5) fair regulatory structure, (6) enabling institutional infrastructure and (7) sustainable incentives and concessions.
New demands on infrastructure management
As path-breaking concepts, frameworks and methods are being developed at national, regional and local levels, especially in critical aspects of infrastructure management such as financing, contracting and regulation, an infrastructure manager today needs to have a variety of skills:
Marketing, business development and financial management skills to mobilize and manage project resources.
Engineering and technical skills to ascertain the technical soundness of the project.
Skills in Participatory Learning and Action (PLA), Information, Education and Communication (IEC), and Strategic Environmental Assessment (SEA) to assess the location-specific social, economic and environmental impact of a project.
Organizational and capacity-building skills to ensure project sustainability.
Overall training needs
In the next six years, about Rs. With massive investment requirements of the order of 14.5 trillion ($320 billion), and a flood of new investor-friendly policies, infrastructure is poised to become the most ‘to-be’ sector. of the Indian economy. The immediate need of the Indian economy is a pool of holistically trained domain-ready infrastructure managers, who have (a) the ability and tenacity to convert large investments into quality infrastructure facilities; (b) upgrading existing infrastructure; and (c) to maintain high infrastructure service levels by adopting good management practices. Be it physical, social, economic or environmental infrastructure, the demand for such holistically trained managers will be unprecedented.
In response to this crying need of domain-ready managers, the country’s first-ever comprehensive Post-Graduate Diploma in Infrastructure Management (PGDIM) program was launched in August 2005. The program was offered by the prestigious Visvesvaraya Technological University (VTU), Karnataka. School of Management for Infrastructure and Development Strategies – India (MINDS), is operating in Bangalore. MINDS is a division of the Center for Symbiosis of Technology, Environment and Management (STEM), a professional research group with almost two decades in development research, consultancy and training.
PGDIM is a one-year full-time program for undergraduates in all disciplines of engineering and post-graduates in other disciplines. The course is designed on a holistic approach to infrastructure management covering project management; marketing; contract management; infrastructure finance; ICT applications; GIS applications; Strategic Environmental Assessment (SEA); legal and regulatory environment; and emerging paradigms. Program participants also work on live projects being implemented by reputed infrastructure organizations and gain professional experience.
Based on the encouraging experience of conducting the unique PGDIM programme, VTU is starting a new format two-in-one PG program in Infrastructure Management from the academic year 2007-08. Very modular in structure, this innovative program offers a ‘dual qualification option’ whereby the student receives a Postgraduate Diploma in Infrastructure Management (PGDIM) after successful completion of the first year and an MBA degree in Infrastructure Management after the second year. . An exceptional feature of the dual option PG program is that it is a highly modular arrangement in which the student has to make up his mind whether to move to the second year in the middle or even at the end of the one-year PGDIM. MBA.
The second year (MBA level) consists of two semesters and includes an advanced internship through extended project assignments. An additional feature of the MBA is that it offers expertise in areas such as urban governance and management, IT infrastructure management, communication and transport, power and energy, health, education, water and sanitation, and PPP.
Both PG Diploma and MBA degree are offered by VTU.
Good corporate response
The first batch of students gained experience through Corporate Exposure and Learning (CEL) internships in leading public/private infrastructure organizations including GMR Hyderabad International Airport Limited (GHIAL), Hubli-Dharwar Municipal Corporation (HDMC), IDECK, Kristal Group, TCE. Consulting Engineers Ltd and UN Habitat. The study topics included: (i) financial risk analysis in the context of airport infrastructure management; (ii) establishment of effective public grievance redressal and emergency response systems (PGRS and ERS) in the municipal environment; (iii) urban planning and renewal; (iv) planning and scheduling for infrastructure development; (v) business aspects of Power Business Consulting; (vi) Evaluation of the UN-Habitat Program on Water for Asian Cities; (vii) Environmental impact assessment for setting up of small hydropower plants. Naturally, the first PGDIM batch was welcomed by the industry and received 100% final placement offers with attractive packages comparable to any emerging sector. Employers include DLF Group, IL&FS and Infrastructure Development Corporation of Karnataka (IDECK).
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