Q. Which of the following difficulty/difficulties faced by the government sector while provision of Infrastructure services?
1.Adequate scale of investment
2.Technical efficiency
3.Competitive market structure
Choose the correct answer from below given codes:

[A] 1 only

[B] 1 and 2 only

[C] 2 and 3 only

[D] 1, 2 and 3

Answer: D

Explanation: Putting in place the quality and efficient infrastructure services is essential to realize the full potential of the growth impulses surging through the Indian economy.

  • There is now a widespread consensus (now clearly accepted by the Planning Commission) that exclusive dependence on the government for the provision of all infrastructure services introduces difficulties concerning adequate scale of investment, technical efficiency, proper enforcement of user charges, and competitive market structure.
  • At the same time, complete reliance on private production, particularly without appropriate regulation, is also not likely to produce optimal outcomes.

Source: TMH Ramesh Singh