Delhi's Commonwealth Tamasha

There are less than 18 months to October 2010, when Delhi will be hosting the Commonwealth games. It will be a world stage where India will exhibit its own progress and panache much like China did it in the 2008 Olympics and Sydney did it in 2006 Commonwealth. However, the road to Commonwealth has been bumpy, patchy and with a reason, non existant. In an earlier post, i had covered the state of (un)readiness of Delhi to host an event so large in magnitude and scale. http://newspaper-posts.blogspot.com/2009/03/delhi-running-out-of-time-on.html

Lately, Australian Commonwealth Games Association, has issued a threat to pull out of the Delhi CWG if its security concerns are not met. The security assessment a month before the games would be critical in terms of Australian contingent proceeding with their participation. It comes on the back of the attack on Sri Lankan Team in Pakistan. Earlier, the centre government had sanctioned Rs.78.26 crore for security arrangements (after the Sri Lankan team episode in Pakistan).

While security is the top most in the list of priorities, Infrastructure addition to the city has also been a concern. A few interesting notes about the same:

1. The longest flyover in Delhi, which will connect the 5 kms stretch from Jawaharlal Nehru Stadium to the Games Village bypassing Sarai Kale Khan and Nizamuddin West will be built at a cost of Rs.5 billion! This will facilitate movement of 10000 atheletes from the games village to the main stadium. This project is expected to be finished in 24 months!
Please note, the 24 month project starting date (March 2009) onwards would mean that the fly over will not be fully available ort may be partially available for the task it is being built for!

2. Earlier this flyover was supposed to be a tunnel road which was rebuffed by the Archeological Survey of India fearing danger to Humayun's tomb!
So much for town planning and preparation for Games

3. While MCD tries to expedite the projects at hand, it is now eating some of its own medicine as it faces resistenace from the environment department of Delhi Government. The widening of the the road to Karni Singh Shooting range has hit the breaker (after being stuck for 6 months anyway) because widening of the road would require felling 400 trees, which is not permitted.
So a "one- way" solution is being thought about.
Did the MCD involve other stake holders in the goverment when they had first envisaged the locations of the games? The answer seems to be no!

4. In a report to the chief justice K.G.Balakrishnan, town planner and former chairman of Delhi Urban Arts Commission, Charles Correa has advocated that the badminton and the squash stadiums be moved away from Siri Fort Indoor Stadium to elsewhere for the purpose of preserving the the green in the area. MCD is now looking at other options with a Rs.1.5 billion kitty for Squash and Badminton stadiums!
Alternate options had never been prepared. Old Sites were being counted upon. With the development tactic backfiring on issues such as environment it will be interesting to see how MCD generates options for the CWG

Thumbs up for China, Thumbs down for India

I start this blog with 2 widely believed and unproven hypothesis. You would probably get to hear them more in the corporate boardrooms specially MNCs which have invested and done business with India.

Hyp. 1: India discounts it GDP growth by 2% on account of infrastructure unavailability. Whether be the lack of proper roads, or electricity, or governance, or airport infrastructure or just the red tapism in the bureaucracy. It is a significant deterant to the global super power dreams of India.

Hyp 2: India's growth has been powered more by its educated citizenry with government being a by stander in the growth. If any thing, the neta giri and the babu-dom have shackled the Indian executives and business more than giving them head room and leg room to grow. Mani Ratnam's Guru, had a 4 minute monologue by Abhishek Bachchan on the fetters that governance is putting over capitalism in this country.

India ranks a lowly 122 amongst 181 economies in terms of "ease to do business index", a reportpublished by the world bank group. Only African nations and war torn economies are more difficlut than India in terms of ease to do business! So much so for an economy whihc is the second fastest in the world in terms of growth.

Vodafone’s global CEO Vittorio Colao made his point clear in the CII conference on 19th January 2009, that India must offer increased clarity on its foreign direct investment across sectors. The(FDI) policy in India is complex and lends to multiple interpretations. Companies work on their legal interpretation of the policy and sometimes, find that they have tripped onto the illegal side of things as per policy.

What ever interpretation we give to the Indo - China ascendancy, whether be the tiger or the elephant and the dragon; policy makers in India should understand this clearly as anything else, we are in the competition of global investment. Better products, better services, better jobs are only possible if, suitable climate is provided to businesses to perform. As a first hand, i am aware of the "gifts" that lobbies and corporates bestow on the Babus in the state and union to see that the businesses continue unhindered. Bribes form a part of the deal, right from the CEOs office to the ground of action where the municipal clerks and the policemen are "taken care of". I was not wonder struck, when one of these opinion polls revealed that Indian corporates are least averse to paying bribes for smooth functioning of their operations.

Even China is state controlled to a very large extent. However, the difference is stark. The Dragon's speed, growth and efficiency is a product of the state governance. It is top down , while for India it is bottom up. Without a doubt, in the long run, a bottom up is more beneficial. However, in the present circumstances, it is dragging the resurgence down below.

In an earlier blog, i had mentioned, 2009 being the election year will mean a plethora of populist measures. The exchequer is going to bleed and the onus for making up on the losses will be laid squarely on the shoulders of corporate India. Already, i believe that the upward revision of 3G licensing fees from Rs.1650 crore to Rs.4040 crore makes it a untenable option for business houses. Unviability will lead to slower roll outs impacting services standards in the country. But really, does any one care?