BW Communities

Bolster The Mainframe

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[India is in the development mode, and to  accelerate the process, there is an immediate need for vastly improved infrastructure in the country. Unlike the Chinese approach to infrastructure investment, where the country first creates the infrastructure and industry follows, India usually works the other way round. We are  long on planning and short on implementation. But the opportunities for further growth are entirely dependent on the ability of our infrastructure to take the extra load, be it in electrical power, highways, ports or communication systems. It is, therefore, a period of opportunity for many industries, such as steel, cement, coal, non-ferrous metals, etc. We are woefully short in steel; a production of around 70 million tonne for the size of our population is inadequate. Similar is the case for cement and certain strategic metals, such as copper. The inadequacy of petroleum products and coal in our country will also hamper our development. Unfortunately, several projects in these vital areas have been delayed due to the usual reasons — indecisiveness of the central and state governments, lack of prompt clearances from the concerned ministries, the list can go on. Very often, political considerations have held back vital projects for the development or production of commodities. We also need greater capital formation in India, and though there has been healthy growth in FDI (foreign direct investment), the country needs much more support — and much less red tape — to produce the desired results. Despite operating in a protected environment till 1990, the corporates have seized the opportunity and shown great agility in project execution, when the necessary sanctions have been made available to them. We, therefore, need greater coordination and speed in hastening pending projects. Land availability for major infrastructure projects — as also the sanctions leading to the proper use of our vast raw material resources — is an absolute must in taking major steps in the industrialisation of our country in 2011. The author is a director of Tata Sons (This story was published in Businessworld Issue Dated 10-01-2011)