Month: November 2012

Scam Scarred Congress Government Unable to Move on Highway Construction – 50% Projects Paralysed

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We’d like to present some facts on the Scam Scarred Congress Government which continues to be greedy despite Policy Paralysis in every Ministry. We’ll have a look on one of the most important infrastructure – National Highways performance and how policy paralysis has affected the same.

The already awarded projects failing to make progress (80% of projects awarded during FY2012 await financial closure, 50% past contractual deadline) on the back of stringent conditions put forth by banks which are facing tremendous pressure due to defaults from these Road Contractors who have won projects by Virtue of Corruption in an Oligarchic Setup. They are also faced

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Will Indian Prime Minister’s National Investment Board Take Off ? Reforms on the Way

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With the new Finance Minister Chidambaram taking over in September, a slew of Reforms were announced in a one-week period in mid-September, including approving a hiking of the diesel price and allowing foreign direct investment into the retail sector. However, in the context of the reforms announced, perhaps the most important symbolically from an investment cycle standpoint was a proposal to set up a National Investment Board (NIB) whose chairman will be Prime Minister Manmohan Singh. [Similar to how former PM of India Atal Bihari Vajpayee setup for his Dream Golden Quadrilateral Highway Project]

The reason this NIB proposal is important is that it is designed to address the seizing up of bureaucratic decision making which has been the practical consequence of the series of corruption scandals in recent years, most particularly the scandal over the sale of 2G telecom licenses in 2008. The idea is

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Can the Congress Government Change the High Deficit and Decling Investment Trend ?

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The UPA Government led by Congress got busy defending series of Scams in which its Ministers were a party, neglecting the Indian Economy and pushing it to deeper problems with increase in Social Spending(Vote Bank Politics).

Since the credit crisis, the bad growth mix (high fiscal deficit and declining private investment) has been causing a steady
deceleration in potential growth and has culminated in a stagflation-type environment in India.

The government announced some measures (Oil & gas Price Hike, FDI in Retail, etc) to contain the fiscal deficit and revive investor sentiment. While we have a positive view on the steps taken to

Read moreCan the Congress Government Change the High Deficit and Decling Investment Trend ?