Business Today - - THE BUZZ FOCUS - - Anilesh S. Ma­ha­jan

AS THE GOV­ERN­MENT makes mas­sive in­vest­ments in in­fra­struc­ture, NITI Aayog is sound­ing a note of cau­tion. Its CEO, Amitabh Kant, has rec­om­mended that pri­vate play­ers who make (or made) ag­gres­sive bids and can­not (or could not) de­liver projects must be barred from projects in fu­ture. He says gov­ern­ment agen­cies need to de­velop bench­marks for fu­ture bids. If a pri­vate bid goes be­low that mark, the bid­der should not get the project. In a coun­try where bank NPAs are at ` 12 lakh crore, largely be­cause projects could not be com­pleted, this might sound like a good idea. But, it does not take into ac­count that a bid­der might use in­no­va­tive means to com­plete projects at lower costs. It does not have an an­swer to sit­u­a­tions when gov­ern­ments want to rene­go­ti­ate agree­ments to take ad­van­tage of price drops, as is hap­pen­ing in re­new­able en­ergy.

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