Infrastructure bottlenecks in India are the result of protracted delays in clearances, ‘appalling inefficiencies’ in execution and greed for money and power that is at the root cause of delays, according to N. Vaghul, former Chairman of ICICI Bank.
Addressing a seminar on infrastructure development organised by the Confederation of Indian Industry, Vaghul said it was depressing that for more than two decades such seminars have centred around the need for infrastructure and its role in economic development. But little has been done on the ground.
Constraint
Prior to the shift in economic policy, it was the need for licences and permits that were a constraint. But subsequently, the need for clearances and permits has supplanted licences.
Poor coordination between different arms of the Government, and turf war between authorities have stymied efforts at expediting clearances through either the National Investment Board or the single-window clearance earlier.
Vaghul pointed out that it was not just in the public sector but also in private sector that there were problems in implementing projects. The root cause for the constraints, according to Vaghul was ‘greed’ for money, power and control.
Sangeeta Prasad, CEO, Mahindra World City Developers, and Convenor, Physical Infrastructure Panel – CII, Tamil Nadu, said industrial infrastructure facilities need to be integrated with social and economic development of the region. Raghutama Rao, Managing Director, ICRA Management Consulting Services, said Tamil Nadu has natural strengths in its large small and medium industry base, well-established services sector, agriculture and well spread urban growth.
It can build on these strengths but the issues facing it are primarily the shortage of power which is estimated at about 18 per cent.