Sunday, October 15, 2006

India's infrastructure woes...

India's Prime Minister Dr. Manmohan Singh has said that the country needs to spend $320 Billion in the next 5 years to maintain the current economic growth rate.

"The quality and capacity of our infrastructure is certainly a matter of concern to one and all," the prime minister said. Singh added substantial private sector investment would be needed to deal with India's infrastructure "deficit".

He said road, rail, air and water transport, electric power, telecommunications, water supply and irrigation needed investment of about 320 billion dollars between 2007-12."

"Singh singled out the country's power sector as one of the biggest economic trouble spots and asked India's states to take immediate steps to make the sector financially viable.

He said high transmission and distribution losses accounted for almost 40 per cent of the electricity produced. No civilised society, nor a functional commercial entity, can sustain losses on such a scale," he said."

Read on...


Here is a Financial Times column about "Engaging India: Infrastruture and Dengue"...

"While manufacturers are attracted to India’s low-cost environment and burgeoning domestic market, they are worried about moving their goods – be it cars, mobile phones or textiles – through the country’s poor network of roads, overburdened airports and clogged ports. Power cuts can force business to a grinding halt. Notably, software, outsourcing services and telecommunications, India’s leading industries, have flourished partly because they are unfettered by the constraints of transportation."

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