PF Archive

Legal and regulatory

16 12 2009

Land issues blight India's infrastructure plans India's government is likely to miss its target on infrastructure spending for the five years ending 31 March 2012 by at least $100 billion, with the main culprit not the credit crunch but the difficulty acquiring land for key infrastructure projects. The government plans to spend $500 billion building roads, ports and power supply, according to its most recent five-year plan. But Alroy Lobo, chief strategist and global head of equities and asset management at Kotak Asset Management, reckons the eventual figure will be between $350 billion and $400 billion. In the power sector, for example, he says that at best 60MW to 62MW of capacity will be built by the time the country's 11th five-year plan ends, well below the target of 72MW. While Lobo acknowledges that the infrastructure shortfall will be...