This refers to the article "Slippery slope for infrastructure" (March 10). It is easy to explain the state of infrastructure in India: there are many hurdles in implementing infrastructure projects.
Investors do not believe that infrastructure projects will deliver the expected returns. The government has reduced tax exemption for infrastructure bonds or additional tax benefits are not provided. The cost of land is increasing every day. The government is trimming capital expenditure, which is necessary for improving infrastructure. Moreover, the government has failed to generate inclusive growth.
Finally, the private sector does not want to set up projects in collaboration with the government because the latter tends to squander the equity.
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Investors do not believe that infrastructure projects will deliver the expected returns. The government has reduced tax exemption for infrastructure bonds or additional tax benefits are not provided. The cost of land is increasing every day. The government is trimming capital expenditure, which is necessary for improving infrastructure. Moreover, the government has failed to generate inclusive growth.
Finally, the private sector does not want to set up projects in collaboration with the government because the latter tends to squander the equity.
R K Arya Faridabad
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number