The Hindu Business Line : Infrastructure investments

The Deputy Chairman, Planning Commission, Mr Montek Singh Ahluwalia's concern about whether India can attract $500 billion of investments to upgrade its infrastructure (Business Line, March 19) is reasonable. But, then, much lies in the hands of the Central and State governments. First, the corridors of power must avoid red-tapism or delay in the clearance and implementation of projects. Second, they must provide a good political and social climate for the smooth implementation of projects, and in time too.

Lastly, they must enhance the marginal efficiency of capital (expected rate of profit) of private players, in case they are involved by the government (public-private partnerships) in the development of infrastructure. These steps would go a long way in achieving infrastructure investment and the economic growth (of nine per cent) envisaged in the Eleventh Plan (2007- 12) period.

S. Ramakrishnasayee, Ranipet

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