On Infrastructure Development

DEAR MOHAN, SATISH,

INFRA-STRUCTURE DEVELOPMENT IS PRIORITY NO. 1 FOR THE ECONOMIC DEVELOPMENT OF INDIA. THE BEST WAY TO GO ABOUT THIS IS TO READ THE CENTRAL AND STATE BUDGET SPEECHES, WHERE THESE PROJECTS ARE IDENTIFIED FOR EACH STATE. NEARLY EVERY ONE OF THEM IS BEYOND THE CAPACITY OF THE GOVERNMENTS, BOTH CENTRAL AND STATE. THESE ARE ALL ON BUILD-OPERATE-TRANSFER BASIS WHICH MEANS, YOU BUILD THE PROJECT AT YOUR COST, OPERATE IT FOR A FIXED NUMBER OF YEARS AND CVOLLECT ROYALTY FROM USERS ON AN APPROVED BASIS, AND THEN TRANSFER OWNERSHIP TO gOVT. FREE OF CHARGE AT THE END OF THE AGREED PERIOD. ONE EXAMPLKE IS THE BY-PASS

ROAD IN COIMBATORE, PUT UP BY LARSEN AND TOUBRO.

THERE ARE MANY IN TAMILNADU, KERALA AND KARNATAKA, ESPECIALLY, AIR-PORTS, PORTS, HIGHWAYS, INDUSTRIAL ESTATES, POWERSTATIONS ETC, IT IS AN ENDLESS FIELD.

THE FLIP SIDE IS THE DOCUMENTATION AND THE OBTAINING OF APPROPRIATE GUARANTEES FROM THE CONCERNED GOVTS. ENRON HAS TO HOLD THE PISTOL AT THE HEADS OF MAHARASHTRA AND INDIAN GOVTS. FOR GETTING PAYMENT OF THEIR MONTHLY BILLS, AND EVERY TIME THEY ARE INVOKING THEIR GUARANTEES GIVEN BY THE gOVT. OF INDIA, SINCE THE OTHER GOVT. IS BANKRUPT. IT IS NICE TO TALK TO

STATE GOVTS. ON SELECT PROJECTS, BUT WITH THE CAUTION THAT THEY ARE SHARKAS WHO WANT A CUT FOR EVERYTHING. MORE WHEN WE MEET.

APPA

Sunday, 11.03.2001 11:30
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