Infrastructure deficit is India's weakness

 Addressing a seminar on "Infrastructure Challenges in India" at the ADB annual meeting, Singh said highways hold the largest investment potential in the sector. A 40,000 km long stretch would be developed by 2012, which would cost $50 billion. This included six-laning of the golden quadrilateral and four-laning of the east-west and north-south corridors.

 As investors might not find these projects viable on their own, the government would extend a 40% capital subsidy, which would be subject to competitive bidding.

 For ports to increase their capacity, 54 new berths are needed to double the present traffic handling capacity of 400 million tonnes by 2012. Though the perspective and action plans are being prepared, the estimated investment was around $12 billion, he said.

 A dedicated freight corridor on the Indian Railways is being set up at an investment of around $5 billion. Competition in container train movement has been introduced and 14 licenses have been granted. "They hope to operate the first services by 2007,"  Ahluwalia said.

 Airports would need another $9 billion. The modernisation of Kolkata and Chennai airports would commence soon. The modernisation of Delhi and Mumbai airports was in progress and two greenfield airports were coming up at Hyderabad and Bangalore. A decision would be taken soon on modernisation of other airports. An Airport Economic Regulatory Authority would also be set up, Ahluwalia said.