Move ahead on infrastructure

Move ahead on infrastructure
The Hindu

Decision-making on infrastructure in Karnataka needs to extricate itself from the diversion the highly personalised Deve Gowda-N.R. Narayana Murthy-S.M. Krishna controversy represents. The Infosys chairman and chief mentor resigned his chairmanship of Bangalore International Airport Ltd. (BIAL) in a huff, protesting against the former Prime Minister and Janata Dal(S) kingpin's public questioning of his role in getting the project moving. He was also clearly aggrieved at Mr. Gowda's public criticism of his `urban governance' proposals and the charge, in a letter to Chief Minister Dharam Singh, of `land-grabbing' against Infosys, which the IT major has refuted in detail. Mr. Gowda denies he either sought the resignation of Mr. Narayana Murthy or spoke ill of him. His complaint, on the other hand, is that Infosys, making common cause with Mr. Krishna, former Chief Minister and current Governor of Maharashtra, has chosen a "path of confrontation" with Karnataka's coalition Government. He has accused his bete noir of trying to use the Narayana Murthy resignation to destabilise the State Government. Now that Mr. Gowda has clarified that he has high regard for the Infosys chief mentor's "immense contributions to the growth of the IT industry in Bangalore and Karnataka," Mr. Dharam Singh has publicly appealed to him to stay on as BIAL chairman, and Infosys has set the record straight on the ("no special concession") basis of its 2000 request for 845 acres of land from the Government, all sides must get constructive and apply closure to this counterproductive public spat.

Any delay in actualising the new Bangalore international airport is likely to weaken the competitiveness of one of India's top `new economy' States in its quest for investment, foreign and domestic. Much before the Gowda-Murthy-Krishna controversy exploded, the infrastructure crisis in Bangalore was a major talking point in investor and political discourse. Given the volatile politics of coalition governance, suggestions have been made that investors and industries seek greener pastures outside Karnataka. Industry needs infrastructure, including sizable contiguous blocks of land, for development. Fortunately, it is now a rule that any land acquisition has to be at market value. Given the inelasticity of tax breaks and other fiscal incentives States can offer to investors, what is it they can do to attract major new investment? The answer is they must offer quality infrastructure, reliable interaction between government and industry, swift responses, and businesslike follow-up on promises. It is high time Mr. Dharam Singh gets moving on the airport project. He must demonstrate clear-headed leadership to ensure that Karnataka retains its position as a preferred investment destination, and key infrastructure projects are implemented, adopting the style of work for which Infosys, TCS, and Wipro have won international acclaim.