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For developing better infrastructure
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The role of government-sponsored corporations in public works needs a re-look.
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The cornerstone of Indian economic development has been ‘mixed economy’ with the objective of evolving a socialistic pattern of society. Private initiatives for growth and progress came as a post-script to this approach.
In this process, foodgrain production and core industries were the major concerns, initially.
The role of infrastructure in development came to the forefront only in recent days.
Again, the Public-Private Participation (PPP) model got its due as a result of the push from the private sector, for accelerating growth.
Let us trace the much treaded path and chart the possible future journeys in this initiative.
The preamble to the Five Year Plans often underscores the government policy for growth in different sectors.
The first Plan was fully devoted to the twin objectives of agriculture and heavy industries.
Diversified approach
The subsequent plans contained a diversified approach.
However, infrastructure, as we now understand, such as development of national highways, quadrilaterals, metro rails, ring roads and RORs, were not in the scheme of many plans.
Not that the steel industry, hydro power, dams and irrigation projects are not infrastructure.
However, intensive development of highways, building of aeroplanes, ships, new airports, high speed railway systems, mass transportation facilities and similar plans went up the development ladder only during the past 10-15 years.
The starting point
The establishment of the National Building Construction Corporation (NBCC) can be considered the forerunner in setting up government agencies for carrying out construction activities by the State.
The first steps towards infrastructure development were taken with the setting up of Hindustan Shipyard, Hindustan Aeronautics Ltd., HMT and similar companies in the public sector.
Design and development of these core sectors rested solely with the Central government, whereas building of roads, irrigation facilities and city centric mass transport facilities were within the realm of the State government through its Public Works Department.
It was realised later that the ability of the government departments to execute and maintain large infrastructure projects need to be supplemented by Special Purpose Vehicles (SPVs) and this led to the formation of the highway authority, road development authority and so on.
The PPP model has been accepted as a practical system when very large projects involving substantial funds are taken up. The PPP, however, is more a professional management concept.
K. SUKUMARAN
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