Contents

1. Models Used in the Planning Process 75

1.1. Harrod – Domar Growth Model 75

1.1.1. Relevance of Harrod-Domar Model for Developing Countries 75

1.2. Mahalanobis Strategy of Economic Growth 76

1.3. Planning Model Adopted in India 76

2. Infrastructure Investment Models 76

2.1. Financing of Infrastructure: Need, Issue and Challenges 76

2.2. Issues in Infrastructure Financing 77

2.3. Measures Taken by the Government 78

2.4. Public-Private Partnership (PPP) in Infrastructure 79

2.4.1. What advantages PPPs may provide? 79

2.4.2. How a PPP project is different from a conventional project? 79

2.4.3. Are there any limitations of PPPs? 80

2.4.4. Models of PPP 80

2.4.5. Problems Faced by Private Builders Under PPP Leading to Inefficient Implementation

.............................................................................................................................................. 87

2.5. EPC MODEL 87

2.5.1. How is EPC different and better than PPP? 88

2.5.2. Some issues with EPC model 88

2.6. Swiss Challenge Model 89

2.6.1. Advantages 89

2.6.2. Problems with this Model 89

2.6.3. Suitability of Model to Indian situation 89

2.7. Hybrid Annuity Model 90

2.7.1. Salient Features 90

2.7.2. Advantages of this Model 90

2.7.3. Need of this Model 90

2.7.4. Challenges in this Model 91

3. Models of Foreign Investment 91

3.1. Why the Need for Foreign investment? 91

3.2. Forms of Foreign Investment 91

3.3. Foreign Direct Investment 91

3.3.1. Forms of FDI 91

3.3.2. Why FDI preferred? 91

3.3.3. Forbidden Territories 92

3.4. Foreign Institutional Investors 92

3.5. Recent Initiatives to promote Foreign Investment 92

3.5.1. Expansion of Qualified Foreign Investors (QFIs ) Scheme 92

3.5.2. Categorization of NRI investment as domestic investment 92

3.5.3. What More Needs to be Done to Promote Investment and Increase Efficiency of Investment? 92

4. Previous Years GS Mains Questions 93

5. Previous Years UPSC Mains Questions 98