Clearly laying down rules for private sector participation, Gujarat has eliminated much uncertainty associated with investment in the sector. The private sector's experience in setting up infrastructure projects in India has been bitter.
Concession agreements take anywhere between two to four years to thrash out.
Once signed and sealed, public interest litigation has the project in courts for a few years and then construction can begin. By then time has taken its toll. Outdated projections and cost overruns invariably mean the company has to start from scratch. Most often, it has been the process involved and not lack of business prospects that has deterred investment in the sector. The Gujarat government has been the first to realise this.