Sports in Harmonized Master List of Infrastructure Sub-Sectors

The Union Finance Ministry has decided that sports infrastructure will be included under the harmonised master list of infrastructure sub-sectors. The Ministry of Youth Affairs & Sports Affairs had initiated the proposal for inclusion of sports in to the list with an aim to address the issue of deficit of sports infrastructure in the country.

The Harmonized Master list of infrastructure sub-sectors consists of five core sectors. They are:

• Transport
• Energy
• Water and sanitation
• Communication
• Social and commercial infrastructure

According to the recent decision, sports sector has been included as a subsector under social and commercial infrastructure sector.

Significance

• It will include sports stadia and infrastructure for academies for training and research in sports and sports-related activities in the infrastructure sub-sectors.
• With this, sports sector will become eligible for obtaining long term financial support from banks and other financial institutions on same principle available to other infrastructure projects.
• It will encourage private investment in a public good which has socio-economic externalities in a country with young population.
• It will bolster investment in sports infrastructure sector and will contribute to the economy as well as help in promotion of health and fitness of the people.
• It will provide opportunities for employment in the new and existing sectors.
• Investment from private sector will widen the platform from where the country can become a sporting power in future.

Background – Harmonized Master list of infrastructure sub-sectors

In 2009, the Prime Minister’s Office (PMO), had asked the Ministry of Finance to resolve the issue of uniform definition of infrastructure. In view of the varying definitions, the Cabinet Committee of Infrastructure (CCI) came up with a harmonized master list of 5 main infrastructure sectors (Transport, Energy, Water and sanitation, Communication and Social and commercial infrastructure) and 29 infrastructure sub sectors. The list is a flexible one and acts as a guide to all agencies involved in the field of infrastructural development or financing in India. It was decided not to have any rigid and inflexible listing of sub-sectors. So that each financing agency can draw up their own list of subsectors out of the master list with proper justification for inclusion or non-inclusion of a particular sub-sector. The following are the six characteristics that make any new sub sector eligible to be included in the master list:

• Natural monopoly
• High sunk costs and asset specificity
• Non-tradability of output
• Non-rivalness in consumption
• Possibility of price exclusion
• Presence of externalities

Mechanism to update list

The institutional mechanism to update the master list will be done by a committee chaired by Secretary, Department of Economic Affairs. Apart from Chief economic Adviser, the committee will consist of representatives from Department of Revenue, RBI, SEBI, IRDA, PFRDA etc. The recommendations made by the committee will be sent to the Finance Minister for taking a final decision.