Infrastructure growth based on clean governance

Arup Group Ltd Chairman, Terry Hill today called for streamlining bureaucracy and reducing corruption while advocating public-private partnerships (PPP) in the infrastructure sector in India.

Hill, who was addressing a session on 'Infrastructure: Opportunities for India and EU' at the 6th India-EU Business Summit said, "Infrastructure is a high risk game and we have seen projects getting delayed and going grossly over-budget due to teething problems. Public-Private partnerships can play an effective role here."

Mike Blackburn, chairman of Mott Mac Donald seconded Hill's views and listed corruption in bureaucracy as the biggest challenge in the sector in India.

"There is huge potential in the sector in India but for it to realise its true worth, procedures need to be simplified and accelerated," he said.

Hill and Blackburn, who were here to give an international perspective to the sector in India, suggested that public-private partnerships provided an answer to the huge demand for investments.

They said more than 600 projects had already been implemented in the UK alone and their expertise could be utilised in India.

"PPPs have long term prospects and financing is largely private though funding is frequently public. Private players can step in for taking risks and making innovations," Hill said.

Blackburn added India had no dearth of entrepreneurship but western methodology could be used for better results.

The panel, which also included Pradeep Puri, managing director, Noida Toll Bridge Company, Rakesh Bakshi, managing director, Vestas RRB India Ltd and B N Puri, advisor Transport Division Planning Commission, spoke on the amount of investment potential the infrastructure sector held even as the investment scenario improved over the years.

"Our freight operations and productivity in the transport sector are very low and though a lot of investment is taking place, there is still room for more," said Pradeep Puri.

He also pointed that container traffic is also increasing with every passing year and there seems to be no possibility of a let up in future.

The panelists also discussed public sector financing which was described as "a major limitation" and it was highlighted that productivity improvements would have to depend on new ways of financing.

Bakshi said building infrastructure depended on energy which was not available in abundance. "We need to look at alternative energy sources with earnest and the thrust ought to be on renewable energy rather than fossil fuels," he said.