Infrastructure sector needs reforms to attract foreign capital: 'Tarmac to Towers' author

The Federal's business editor K Giriprakash discusses the evolution of India’s infrastructure with Pratap Padode, the author of Tarmac to Towers.

In the book, Padode, a chartered accountant and infrastructure expert with 26 years of experience, reflects on the challenges, achievements, and lessons from India's infrastructure journey. The book, which offers an unbiased view of policies pre- and post-2014 and their impact on India’s development, has even received a lot of praise from Nandan Nilekani.

Infrastructure Pre-2014: Scams and stalled growth

The pre-2014 era witnessed promising beginnings, especially during Atal Bihari Vajpayee's tenure, with initiatives like the Golden Quadrilateral project and public-private partnerships. “It was a glorious period between 2005-2008,” Padode remarked, “but it ended with the Lehman Brothers crash.”

However, this period also faced numerous challenges, from transparency issues in project bidding to scams like 2G and the Commonwealth Games fiasco.

“The Vodafone case and retroactive taxation scared away foreign investors,” Padode noted, emphasising how such policies paralysed the economy. He described how political interference, such as Jayanti Natarajan’s stalled environment clearance files, further derailed development projects.

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Post-2014: Reform and roadblocks

Post-2014, infrastructure witnessed significant administrative streamlining and fewer large-scale scams. “There is no paralysis in projects now, but shortcuts are sometimes adopted,” Padode said. He highlighted the electoral bond issue, where contractors contributed to ruling parties and secured contracts, raising concerns about potential conflicts of interest.

He also warned about the risks of inaugurating incomplete projects under political pressure, citing examples like the Ram Mandir and the Zojila Tunnel. “These are critical projects that need precision and experienced hands to avoid mishaps,” he added, urging for stricter quality control through infrastructure audits.

Demonetisation and GST: Impact on SMEs

Padode reflected on demonetisation as one of the most impactful yet flawed decisions in recent history. “Demonetisation didn’t achieve its objectives,” he stated, pointing to its devastating effect on small and medium enterprises (SMEs). He explained how the subsequent implementation of GST compounded the problem, leading to the shutdown of many informal businesses.

“These decisions were well-intentioned but poorly timed,” he argued. “They crushed the informal sector, which still hasn’t fully recovered,” he added.

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The future of Indian infrastructure

Looking forward, Padode emphasised the need for stable policies and completing pending projects to attract foreign investments. “Projects like the Mumbai-Nagpur Expressway are 90 per cent complete, but the remaining 10 per cent is costing us heavily,” he said.

He also stressed the potential of tourism and large-scale factory setups to boost GDP. “We need reforms in labour laws and judiciary to ensure ease of doing business,” he remarked, urging for a cohesive vision that transcends political differences.

Lessons from "Tarmac to Towers"

“Tarmac to Towers” offers an in-depth exploration of India’s infrastructure journey, highlighting both its triumphs and pitfalls. Padode’s balanced analysis sheds light on the need for coordinated policymaking and timely project completion.

As India aspires to become a developed nation, the lessons from its infrastructure evolution remain critical for shaping its future.

(The content above has been generated using a fine-tuned AI model. To ensure accuracy, quality, and editorial integrity, we employ a Human-In-The-Loop (HITL) process. While AI assists in creating the initial draft, our experienced editorial team carefully reviews, edits, and refines the content before publication. At The Federal, we combine the efficiency of AI with the expertise of human editors to deliver reliable and insightful journalism.)