Professional Documents
Culture Documents
The Way Forward in Nepal: 10 Editorial
The Way Forward in Nepal: 10 Editorial
The Way Forward in Nepal: 10 Editorial
EDITORIAL
NOIDA/DELHI
THE HINDU
CARTOONSCAPE
Think different
on infrastructure
hen the going gets tough, public investment must be stepped up to pump-prime a
slow-moving economy facing uncertain
headwinds of low commodity prices and
faltering international trade. When the going is good, the
private sector would also have a role to play, Finance Minister Arun Jaitley has said, vowing to ramp up infrastructure investments in 2016-17. Ten months ago, in his first
Budget for a full financial year, Mr. Jaitley had scaled up
such investment to Rs 1.25 lakh crore, two-thirds of which
was earmarked for road and railway projects. In the coming year, he has indicated that the priority will be rural infrastructure as the stress in Indias villages after two bad
monsoons has hit demand. This is deterring fresh private
investment, with many firms still struggling with past investment plans that are stuck or have become unviable.
While economists debate whether the government should
stick to its fiscal consolidation road map or scale up public
expenditure to spur the economy, nobody will mind if a
slightly higher fiscal deficit leads to more jobs while creating useful public assets. Low oil and commodity prices offer the chance to build more infrastructure at a far lower
cost, but as Mr. Jaitley said, We must have the intellectual
honesty to analyse our shortcomings and improve them.
So have higher allocations to infrastructure spending
this year helped? Anecdotally, a few signs are positive. Demand for bitumen, a key ingredient for building roads, has
risen, as have enquiries for construction and earth-moving equipment. Paying private contractors to build highways has boosted cash flows and enabled a few to re-enter
the fray for new projects. But all is not well yet. Core sector
performance hit a decades low in November 2015.
Though public investments have started to gain traction,
this is yet to reflect in the performance of investment-linked sectors, rating agency Crisil said, as demand remains
weak in end-user sectors such as real estate, with overcapacity in others. Of course, this is partly the lag effect infrastructure projects take time to show results. Yet, an
honest introspection should reveal the need to utilise public infrastructure budgets more effectively without the
cost- and time-overruns associated with the governments
business as usual approach. Take Indias largest industrial infrastructure project, the Delhi-Mumbai Industrial
Corridor, set up as a special purpose vehicle to shed the
legacy burdens of departmental decision-making. Its
crawling, though all the States along the corridor except
Delhi are run by the BJP. Or the Project Monitoring Group
under the Cabinet Secretariat tasked with resolving
stalled projects, on which not much has been heard in
months. Could the fact that these bodies were left without
a head through most of 2015 have affected performance?
Tapping the Consolidated Fund of India as well as innovative vehicles such as the National Investment and Infrastructure Fund is laudable. Perhaps, it is also time to find a
few good men who can get the job done on the ground,
grant them autonomy and fix accountability for outcomes.
CM
YK
Letters emailed to letters@thehindu.co.in must carry the full postal address and the full name or the name with initials.
H.N. Ramakrishna,
Bengaluru
Saudi-Iran rivalry
West Asia, already in turmoil, is
now seeing escalating tensions
between Saudi Arabia and Iran
(A dangerous escalation, Jan. 6).
Under the guise of protecting their
own sects, both nations are
resorting to violence, but the real
motive is to establish their own
hegemony. The Islamic State has
carried
out
unimaginable
atrocities on women and minority
communities in the region. The
execution of the Shia cleric by
Saudi Arabia and the responses by
protestors in Iran would only
further exacerbate the cruelty of
IS. It is important that both nations
have amicable relations to solve
the Syrian crisis.
Gagan,
Noida, Uttar Pradesh
ND-ND