7/9/2019 Harmonized list of Infrastructure sub-sectors

Press Information Bureau

Government of India
Cabinet Committee on Infrastructure
01-March-2012 13:36 IST
Harmonized list of Infrastructure sub-sectors

The Cabinet Committee on Infrastructure today approved the following :

(i) Framework for using the harmonized Master List of infrastructure sub-sectors.
(ii) Principles for updating the Master List
(iii) Creation of the institutional mechanism to update the Master List and for revisiting the sub-sectors
outside the Master List.
Harmonization of the existing definitions of infrastructure sectors will facilitate a coordinated
approach, among agencies providing support to infrastructure, and, thus spur infrastructure
development in a more optimal manner.
Background :
The Prime Minister's Office (PMO), vide ID dated August 4, 2009 had asked the Ministry of Finance to
urgently consider and resolve the issue of uniform definition of infrastructure. The Ministry of Finance
had thus moved a proposal for approval of CCI of a harmonized master list of 29 infrastructure sub-
sectors as depicted at Annex.l and also for creating a framework and an institutional mechanism for its
updation.

The harmonized Master List of sub-sectors, identified as infrastructure sub-sectors, is meant to guide
all the agencies responsible for supporting infrastructure in various ways. It has consciously been
decided not to have a rigid and inflexible listing of sub-sectors, to be made universally applicable to all
agencies. Each financing agency shall, therefore, be free to spell out its reasons and draw its own list of
sub-sectors out of the Master List, which it intends to support, with adequate justification for
inclusion/non-inclusion of specific sub-sectors from the Master List. If any agency is presently
supporting a sector/sub-sector which is outside the harmonized Master List, it may continue to do so
and the matter will be revisited after an appropriate period of time by the institutional mechanism.

Henceforth, inclusion of new sub-sectors proposed by a particular agency would be done only when
applicability of the six characteristics of infrastructure (namely natural monopoly, high sunk costs and
asset specificity, non-tradability of output, non-rivalness in consumption, possibility of price exclusion,
and presence of externalities) and one or more of the three parameters (namely its importance to the
scheme of economic development, its ability to contribute to human capital and the specific
circumstances under which it has developed in India) has been assessed; and a clear and identifiable
link with the support objective, which that agency seeks to serve, has been established.

The institutional mechanism to update the Master List and for revisiting the sub-sectors outside the
Master List, will be a Committee chaired by Secretary, Department of Economic Affairs with Member-
Secretary, Planning Commission, Secretary, Department of Revenue, Chief Economic Adviser, and one
representative each of RBI, SEBI, IRDA, PFRDA and the Secretary of the concerned Administrative
Ministry/Department, as members. The Committee will be serviced by DEA and will make
recommendations to the Finance Minister for decision.

Annex-I
Master List of Infrastructure sub-sectors

Sl.No. Category Infrastructure sub-sectors

1. Transport Roads and bridges
Ports
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7/9/2019 Harmonized list of Infrastructure sub-sectors

Inland Waterways
Airport
Railway Track, tunnels, viaducts, bridges1
Urban Public Transport (except rolling stock in case
of urban road transport)
2. Energy Electricity Generation
Electricity Transmission
Electricity Distribution
Oil pipelines
Oil/Gas/Liquefied Natural Gas (LNG) storage
facility2
Gas pipelines3
3. Water Sanitation Solid Waste Management
Water supply pipelines
Water treatment plants
Sewage collection, treatment and disposal system
Irrigation (dams, channels, embankments etc)
Storm Water Drainage System
4. Communication Telecommunication (fixed network)4
Telecommunication towers
5. Social and Education Institutions (capital stock)
Commercial Hospitals (capital stock)5
Infrastructure Three-star or higher category classified hotels
located outside cities with population of more than
one million
Common infrastructure for industrial parks, SEZ,
tourism facilities and agriculture markets
Fertilizer (Capital investment)
Post harvest storage infrastructure for agriculture
and horticultural produce including cold storage
Terminal markets
Soil-testing laboratories
Cold Chain6

1. Includes supporting terminal

2. Includes strategic storage of crude oil
3. Includes city gas distribution network
4. Includes optic fibre/cable networks which provide broadband / internet
5. Includes Medical Colleges, Para Medical Training Institutes and Diagnostics Centres
6. Includes cold room facility for farm level pre-cooling, for preservation or storage of agriculture
and allied produce, marine products and meat.

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