Second in the series, this report lays bare the policy and organisational failures that have spawned poor governance in India. It argues that rather than viewing poor governance as a cause, it has been more an effect. Many of the vested interests of today have been created by past failures in policy. Administrative and other processes of the state have also contributed to poor governance. The need of the hour in the physical infrastructure sector is to get the framework for citizen and private participation right, to bring about legal and other changes to improve contract adherence and to find the right non -distortionary ways to administer subsidies. Topics include the constitutional and legal framework for governance, the problem of environment, rehabilitation and the major failures and the regulatory and contractual framework necessary to take commercialisation forward. The development over the years in rural and urban infrastructure, power, telecom, water and integrated transport are covered.

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