Building India: Checkpoint 1

Quick checkpoint - five questions on infrastructure's features, PPPs, the hybrid annuity model, FASTag and land acquisition.

Quick checkpoint - five questions on infrastructure’s features, PPPs, the hybrid annuity model, FASTag and land acquisition.

Question 1 of 5 Why are many infrastructure networks natural monopolies?

The law requires it It is cheaper for one firm to serve an area than to build duplicate networks Only governments can own them They have no customers

Duplicating pipes or power lines would be wasteful, so regulation is needed.

Question 2 of 5 Why did many Indian highway PPPs run into trouble?

Too much traffic Overoptimistic traffic forecasts, land delays and heavy debt Tolls were too high Roads were built too quickly

Revenues fell short, land acquisition stalled and developers borrowed too much.

Question 3 of 5 Under the hybrid annuity model, who bears traffic risk?

The private developer The government The truck drivers The banks only

The government pays annuities regardless of traffic and collects tolls itself.

Question 4 of 5 What did FASTag change at toll plazas?

It doubled toll rates for everyone It automated toll payments, cutting waiting times It removed all tolls It made cash mandatory

RFID tags deduct tolls automatically as vehicles pass.

Question 5 of 5 What did the 2013 land acquisition law introduce?

Lower compensation Higher compensation, consent requirements and social impact assessments A ban on all acquisition Automatic approval of projects

It replaced the colonial 1894 Act with stronger protections for affected people.

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