The Hindu Business Line : Funding infrastructure

This is with reference to the editorial “Funding infrastructure” (Business Line, November 8). Development of infrastructure brooks no delay. But the government is still unclear on the fund-utilisation options it would like to resort to for investment in the area of infrastructure development.

It is well-known that funds are not a constraint; what is in short supply is the will on the part of the Government and policy-makers.

Indian infrastructure leaves much to be desired and the government is blamed whenever people experience difficulties during travel. The national highways are in poor shape. Airports are finding it increasingly difficult to accommodate additional aircraft and even the large influx of passengers. Power too is in short supply

As rightly stated, differing perceptions and assessments by the RBI and the government make the situation worse.

To fund the infrastructure requirement, the government seems to be thinking in terms of using part of forex reserves.

On the one hand, we perceive capital shortage and, on the other, we see excess money.

Land acquisition and legislation in connection with environmental issues and other policies and procedures differ widely across States.

The government must create an enabling and favourable environment for infrastructure to attract funds and take steps to overhaul policies and procedures in different States, involving the governments in the process.

K. K. Ammannaya e-mail

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