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The road to infrastructure - Views on News from Equitymaster
 
 
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  • Jul 30, 2009

    The road to infrastructure

    Infrastructure is one of India's biggest stumbling blocks. And events in recent years have made it clear that land acquisition is in turn the biggest stumbling block in creating infrastructure. In fact, land acquisition accounts for around 70% of infrastructure projects facing delays.

    The National Highways Authority of India (NHAI) has plans of laying 20 km of roads each day. As of June 30, 202 projects are being implemented under the National Highways Development Project.

    In an attempt to avoid land acquisition problems going ahead, it will open 150 special land acquisition units (SLUs) and 10 regional offices across the country. As per a leading daily, states like Rajasthan, Bihar, Uttar Pradesh, Gujarat, Orissa, West Bengal, Jharkhand, Maharashtra and Assam will be covered. It may be noted that Tamil Nadu and Karnataka already have SLUs.

    In our opinion, this is a step in the right direction of greater decentralization of the NHAI. Being present merely in Delhi is not adequate as the actual action on the ground happens in various states.

    Microsoft and Yahoo vs. Google
    After much negotiation, Microsoft and Yahoo have finally decided to partner in the Internet search and advertising space in order to take on the might of Google. It may be noted that earlier, Microsoft had tried to acquire Yahoo, but failed. Under the new 10 year deal, Microsoft will provide the search technology on Yahoo's site. Yahoo in turn will focus on publishing web content in areas like finance and sports.

    We doubt if this move will threaten Google's dominance - which holds 65% market share in the US. Microsoft and Yahoo put together muster only 28%. Given how favorably internet users view Google due to years of customer-friendly behavior, it is likely that its advantage will be sustainable.

     

     

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