Ease of business can fast forward the India story
ECONOMY & POLICY

Ease of business can fast forward the India story

Padma Vibhushan Dr E Sreedharan captivated the 150-plus audience at the Metro Rail Conference in Mumbai as he shared his learnings and recommended course of action for the government, which he asked th...

Padma Vibhushan Dr E Sreedharan captivated the 150-plus audience at the Metro Rail Conference in Mumbai as he shared his learnings and recommended course of action for the government, which he asked the FIRST Construction Council and CW to convey to the ministries. “We need to enhance the budgetary support for the metro rail as only Rs.13,000 crore was allotted for metro rail while the roads and highways sector was accorded Rs.2 lakh crore,” he lamented.Although we set up the first metro rail back in the 1970s with Kolkata Metro, we have lagged behind in using it as a means of urban transport and have not recognised it as essential in urban planning. Now that cities are congested and travelling within the mega cities is becoming a nightmare, we have stepped up, he added. Having recognised the need, we now need to be building at the rate of at least 200 km per year as against our current rate of 25 km per year. China, on the other hand, is building at the rate of 500 km per year and already has over 9,000 km of metro rail against our 800 km. He advocated that metro rail corporations cannot be held to account like commercial ventures as they are fulfilling a social need and should be recognised as such.The other CEOs at the conference from Delhi Metro, Gujarat Metro and Hyderabad Metro with their gathered experience recommended capacity building, use of technology and sharper planning and designing during the detailed project report (DPR) phase. In fact, adding architects and urban and town planning professionals to the list of those being consulted for DPRs is an absolute must if we have to read Big Data and plan the location of stations or integration with other forms of transport.Roads and metro-rail lines are the harbinger of development. The Union Budget will provide funds to push the target for road construction above the 12,000 km that was set for 2022-23. I would think the most optimistic target can be 18,000 km, which will mean a rate of 50 km per day. Given that we cannot construct during the monsoon months, we would need a higher rate of up to 70 km per day after September 2023. Provisions for metro rail are also likely to be stepped up. The Railways is going to be another beneficiary of an enhanced allotment. Renewable and nuclear power should be given priority too. Affordable housing will continue to accelerate. The real dilemma will be between welfare and infrastructure given the fact that this Budget will be the last before the general elections, as the next one will be a vote on account.Exports are taking a dip as global demand is softening. Foreign investors are selling stocks and investing in China as it has begun opening up and, after recording 3 per cent GDP growth last quarter, is geared for a comeback. We need to work on attracting manufacturing without the PLI scheme by making it easy for an investor to set up a plant. Telangana’s Minister of Industries KT Rama Rao and Principal Secretary Jayesh Ranjan are committed to attracting investments to their state and are constantly nudging industrialists for future investments. As states announce a huge number of investments through signed MoUs, these have little credibility as the actual investment barely reaches 10-15 per cent of the number and mainly from those that were going to invest anyway. Easing permissions and facilitating investors through a ‘demonstrable ease of business’ ethic is the key to attracting investments. Let’s go green in ease of business too. FIRST Construction Council is shining a spotlight on steel at the 6th Make in Steel Conference and Awards on February 10 in Delhi and on cement at the 13th Cement Expo and Indian Cement Review & Awards on February 24 in Hyderabad.

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