Seriously clueless

India, private equity and more ...

Monday, October 17, 2005

Something's got to give

I am at the departure lounge of Mumbai’s domestic airport, as yet another flight is delayed for over an hour. I get the feeling that both frequency and magnitude of airline delays have increased in the last few months. The slew of budget airlines have done a great job of pushing fares down and opening up more flight options. However, our airport infrastructure is not keeping up with the increased load. Even as the Indian private sector keeps chugging along, public infrastructure is just not keeping up. New flights are being added, but runways are not. New plants are being built, but there isn’t enough power to run them. World class software companies in Bangalore face the world’s worst traffic jams. The difference in quality and service between privately owned and publicly owned companies is stark. Telecom is a good example. I am posting this using my Tata Indicom data card that gives me very reliable wireless internet access from anywhere in India. The MTNL broadband connection that I applied for 2 months back is yet to arrive. In fact, I have no idea of its status. And this is in an industry where the incumbent PSUs are no longer monopolies. Our culture of subsidizing a few million employees at the expense of a billion consumers cannot continue. As we strive to reach 8% GDP growth, something’s got to give.

4 Comments:

At 8:54 AM, Anonymous Anonymous said...

Where is the incentive for the politicians to solve the infrastructure problem? Maybe the private sector should creating lobbying groups (like in the usa) and influence (through legal 'bribes') politicians to take actions to solve the infrastructure problem.

 
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