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Supply gaps, delays hit infrastructure sector

Supply gaps, delays hit infrastructure sector
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First Published: Wed, Feb 17 2010. 12 03 AM IST
Updated: Wed, Feb 17 2010. 12 03 AM IST
New Delhi: Despite an increasing number of public private partnerships in infrastructure, gaps in infrastructure supply, slack capacity and delays in project implementation continue to affect the sector, a report by the National Council for Applied Economic Research (NCAER) has found.
The report, ‘Infrastructure Development in India: An assessment of Status and Strategies’ was released by road transport and highways minister Kamal Nath on Tuesday.
The report said inefficient utilization of existing infrastructure assets has multiplier effects on other industries and that the government should allocate adequate resources to improve efficiency.
Citing the example of electricity distribution, where there are few private investments, the report pointed to uneven progress in public private partnerships across sectors.
The report said there were large gains to be made from pricing efficiencies in power and the railways as the pricing regime continues to be highly inefficient in both.
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First Published: Wed, Feb 17 2010. 12 03 AM IST