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Infrastructure key to India's growth: ONGC chief

18 Nov 10 02:52 PM
ET
BANGALORE: India's ability to sustain a high growth rate would be determined by the pace of infrastructure development and stability in the country, a top official said on Thursday.

"Infrastructure development pace and social-political stability in the country will be key to sustain the high growth rate," state-run Oil and Natural Gas Corporation (ONGC) chairman and managing director RS Sharma said.

Addressing the National Quality Summit 2010 of the Confederation of Indian Industry (CII) here, Sharma said the country's gross domestic product (GDP) can grow over nine percent per annum only if infrastructure is improved.

"Our infrastructure growth has been tardy and rumbling on for years. Like an elephant, it can stumble also. Unless we fix the inherent problems such as land acquisition and time-consuming procedures, early execution of various projects will remain a challenge," Sharma said in his address at the opening plenary of the three-day annual event.

He also recalled the negative publicity generated in the run-up to the Commonwealth Games in Delhi.

"Similarly, the highway between New Delhi and Dehradun, where our company is headquartered, is congested all the time, taking seven hours to travel 250 km by road," Sharma said.

Citing a report in the recent issue of The Economist on the prospects of India outpacing China's growth rate in this decade, Sharma said inclusive growth was another crucial factor for ensuring stability in the country, as about 220 out of over 600 districts, spread across 20 states, were affected by Maoist insurgency.