Hewlett Packard's rejection of a proposal by its Indian subsidiary to set up a $400 million manufacturing in India because of poor infrastructure is a sad comment on the state of infrastructure in the country. The global infotech giant bypassed India shortlisting China and Malaysia, categorically stating that Indian ports are incapable of facilitating a quick shipment of products. Operating on wafer thin margins in the IT industry, HP cannot afford to hold onto excess inventories which would simply create a major drain on earnings. As though confirming HP's allegations, a recent study reveals some startling facts about the dismal condition of Indian ports. The average ship turnaround time in 1995-96 at the major ports was an astounding 7.6 days. Indian ports also suffer from low labour and equipment productivity.

Obsolete and overage equipment which results in operational constraints such as frequent breakdowns of cargo-handling equipment, inadequacy of container handling facilities, lack of proper co-ordination in the entire logistics chain and unionized labour, have for long now been the crux of the problem.

The condition of surface transport, especially the approach roads to these ports is better left untold. Pictures of CEOs with shovels in hand in a novel form of protest over the condition of the roads come rushing to mind.Estimates show that in 2000-1, the required port capacity would be around 325 million tonnes. Port traffic would be 390 million tonnes. Unless matters are tackled urgently more investment opportunities will pass us by.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.