Bikash Choudhury
Shining India Campaign bombed in the electoral fray in 2004 general election but the back ground of such confidence of Vajpayee led NDA Govt. was not misplaced; because that was based on immediate need of millions of people, Connectivity. Vajpayee’s vision of having golden quadrilateral project to connect the four metros and Prime Minister Gramya Sadak Yojana to connect villages with concrete roads were a phenomenal work done for the country after a long gap and would continue to serve people of this country for years. Both Golden Quadrilateral Project & PMRSY Project are far from completion.UPA govt. had later lunched NREGA program after taking over in 2004 and removed focus from road connectivity projects of NDA govt. which were not lucrative enough for an electoral arithmetic; however, three years consecutive, over 7% growth of GDP after 2004 could be attributed to an extent, to the good job of previous NDA Govt. in development of Road Sector. Development of Roads not only has a multiplier effect for growth but it can also serve in better administration of far flung areas of the country and save innocent people from the wrath of Maoist Army. You can’t apparently fault the motive of UPA govt. due to the problems of resources and funding; as host of requirements were competing for the same meager amount of public resources simultaneously.
Scarcity of Funding for large ticket infrastructure projects often lead to a long gestation period and huge cost over-run. The growth of demand for Road and Rail Connectivity has out lived the Innovative Financing Options of large projects. Now a days the Private Public Partnership also does not cut much ice; what we urgently need is a new steady source of funds for at least ten years to complete all the Road & Rail connectivity projects and Road Infrastructures of all top 100 cities in lock stock and barrel.
Yellow Metal has always attracted both rich and poor in the country equally as a cultural factor, but this huge investment of the country largely remain idle in the cupboards of rural & urban house holds and lockers of all Commercial Banks. If, we can use fifty percent of such assets on road sector for ten years then our road infrastructure could match easily with any developed countries. More over, the process of upgrading road infrastructure would add huge multiplier to growth in other sectors and make the lives of ordinary persons a heap better than it was otherwise.
Gold Bond of Govt. of India could be the ideal solution. GOI could launch one open ended fresh gold bond scheme for five and ten years lock in period with a very attractive offer to mop up 50% of all private gold reserve in the country. One good scheme could be to offer a simple interest of 1-2% per annum on the present value of gold along with bonus in terms of a fixed percentage of gold, may be ten percent for five years and twelve percent for ten years at maturity. In this model GOI could mobilize huge funds at the least cost and help create a cycle of inflow of productive resources for 20 years; which can be channeled back to road, rail, rural and urban infrastructure sector. And again create spiral effect of growth in both, short and long term. Let us hope to drive at 60 miles per hour without potholes on our highways soon and Pranabada would go laughingly, all the way to bank.
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