Any economic success is built on the foundation of a great infrastructure. It is like mother to any economy which not only ensures the evolution of it but also ensures consistency in its growth.[1] So, naturally the backbone of any economic development, is Infrastructure, and there is a need to emphasize the legislature to achieve the best in this arena of law to carry out better endeavors in this direction. In this article we will discussing the United States infrastructure laws and as well give you an overview of India’s position on infrastructure law.
India’s Overview
The laws in the “infrastructure sector in India has witnessed major reforms brought forth with the aim of achieving planned and consistent economic development. There has been a gradual shift from a controlled to an open market economy where private players including foreign investors have assumed an imminent role. The infrastructure sector, consisting of various sectors, is governed by specific Statutes for these sectors. These Statutes clearly provide the modes and means of private participation. Generally private participation is allowed through grant of licenses to the private developer or through contractual relationship. The scope and extent of private participation is determined by the concerned State Government and can be of varying degrees for instance on a Build Own and Operate (BOO) or Build Operate and Transfer (BOT) or Build Lease and Transfer (BLT) basis, to name a few of popular modes.” [2]
The legal framework within which the infrastructure sectors operate has been illustrated, in brief, hereunder:
Airports: “The Government’s Policy on Airport Infrastructure, 1997 contemplates preparation of detailed master plans for the development and upgradation of all selected airports by the operating agency in conformation with the standards and recommended practices of the International Civil Aviation Organization. Greenfield Airports projects may be permitted in the public or private sector or as a joint venture without the prior approval of the Government. However, in case of other categories of airports run by private operators, the approval of Director General of Civil Aviation (DGCA) is required.
The policy recognizes the importance of private participation for a sustained development of airport infrastructure. It seeks to achieve it by way of corporatization of the airports with an aim to divest the government holding in the future. The airports could be owned by the Central/State Governments, Public Sector Units, Urban Local bodies, private companies, and individuals or through joint ventures. The management of airports or parts of airports could be on BOT, BOLT, BOO, LDO, joint venture, management contract or wrap around addition basis.
Establishment of private airports and leasing out of airports to private entities is now permitted subject to prior approval of Central Government. FDI in joint ventures relating to airport infrastructure is permitted up to 74% under automatic route and up to 100% with prior approval. The equity participation could also be made by foreign airport authorities.
Airports are governed by Airports Authority of India Act, 1994, the Aircraft Act, 1934 and the Aircraft Rules, 1937. The above legislations allow private participation through issuance of license for an airport other than owned by the Central Government and formation of joint venture 9with the Airports Authority of India.
Fiscal incentives like 100% deduction in profits for first 5 years followed by 30% deduction for next 5 years, full deduction to run for continuous ten out of twenty fiscal years of the assesses choice, and deduction of 40% of the profit to financial institutions from long-term financing of infrastructure projects is available.”[3]
Roads: “National Highways are governed by the National Highways Act 1956 and the National Highways Authority of India Act, 1988. The functions relating to development, maintenance and management of National Highways are carried out by National Highways Authority of India.
FDI up to 100% (with total foreign equity up to 1500 crore) is permitted in construction and maintenance of roads, highways, toll roads, vehicular tunnels, rail beds, non-vehicular bridges, non-vehicular tunnels, pipelines, ropeways and runways.
Fiscal incentives include duty free imports, 10 years of corporate tax holiday within 20 years of commissioning the project, exemption on profits of financing institutions, exemption on long-term capital gains of investors, concession period up to 30 years and toll rates indexed to wholesale Price Index.”[4]
United States:
In the United States, 1 in 5 miles of highways and major roads, and 45,000 bridges, are in poor condition.[5] “The legislation will reauthorize surface transportation programs for five years and condition. The legislation will reauthorize surface transportation programs for five years and invest $110 billion in additional funding to repair our roads and bridges and support major, transformational projects. The Bipartisan Infrastructure Law makes the single largest investment in repairing and reconstructing our nation’s bridges since the construction of the interstate highway system. It will rebuild the most economically significant bridges in the country as well as thousands of smaller bridges. The legislation also includes the first-ever Safe Streets and Roads for All program to support projects to reduce traffic fatalities, which claimed more than 20,000 lives in the first half of 2021.”[6]
The Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Bill and originally in the House as the INVEST in America Act (H.R. 3684), is a landmark piece of legislation in the field of infrastructure law. This United States federal statute was enacted by the 117th United States Congress and signed into law by President Joe Biden on November 15, 2021.[7] The act was initially a $715 billion infrastructure package that included provisions related to federal-aid highway, transit, highway safety, motor carrier, research, hazardous materials and rail programs of the Department of Transportation.[8] After congressional negotiations, it was amended and renamed to the Infrastructure Investment and Jobs Act to include funding for broadband access, clean water and electric grid renewal in addition to the transportation and road proposals of the original House bill.[9] This amended version included approximately $1.2 trillion in spending, with $550 billion being newly authorized spending on top of what Congress was planning to authorize regularly.[10] The amended bill was passed 69–30 by the Senate on August 10, 2021. On November 5, it was passed 228–206 by the House, and ten days later was signed into law by President Biden.[11]
History:
On March 31, 2021,[12] President Joe Biden unveiled his $2.3 trillion American Jobs Plan (which, when combined with the American Families Plan, amounted to $4 trillion in infrastructure spending),[13] pitched by him as “a transformative effort to overhaul the nation’s economy”.[14] The detailed plan aimed to create millions of jobs, bolster labor unions, expand labor protections, and address climate change.[15]
Conclusion: The Bipartisan law was signed on November 15, 2021. The law came into force in order to come up with consequential investment by the public in the United States transportation networks, broadband, and what not. The regulations try to look for focusing on wide variety of perilous needs in the constructed environment built in the United States of America.
Additionally, the law also requires that financing be done to substitute lead pipes from which drinking water is attained by citizens and many more advantages like these, in order to maintain a sustainable development of the economy.
[1] Infrastructure Laws in India - Real Estate - India (mondaq.com) [2] Ibid 1. [3] Supra 1. [4] Infrastructure Laws in India - Real Estate - India (mondaq.com) [5] President Biden's Bipartisan Infrastructure Law - The White House [6] Ibid. [7] Infrastructure Investment and Jobs Act - Wikipedia [8] "Chairs DeFazio, Norton, and Payne Introduce the INVEST in America Act to Create Millions of Jobs Bringing Our Infrastructure into the Modern Era". The House Committee on Transportation and Infrastructure. US House of Representatives. July 1, 2021. [9] Supra 7. [10] "Bipartisan Infrastructure Bill Passes, What Happens Next". Investopedia. [11] "Biden signs $1.2 trillion infrastructure bill, fulfilling campaign promise and notching achievement that eluded Trump". The Washington Post. [12] Siegel, Rachel (March 31, 2021). "What's in Biden's $2 trillion jobs and infrastructure plan?". The Washington Post. [13] Everett, Burgess; Levine, Marianne (May 24, 2021). "'Time to move on': Infrastructure talks near collapse". Politico. [14] Stein, Jeff; Eilperin, Juliet; Laris, Michael; Romm, Tony (April 1, 2021). "White House unveils $2 trillion infrastructure and climate plan, setting up giant battle over size and cost of government". The Washington Post. [15] Davidson, Kate; Omeokwe, Amara (April 3, 2021). "Biden's Infrastructure Package Is Designed to Boost Unions". The Wall Street Journal.
