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Saturday, February 28, 2004

Brand new mini-cities 

One of the first things that strike you when you enter India is the decrepit state of infrastructure in most of the big cities. It starts right at the horrific airports, through the anarchic, pot-holed roads, dilapidated public transport, the incredible levels of pollution and stays with you until one actually gets used to it all (yes, one does and quite easily too). This at a time when these cities are not competing with each other anymore, but with international cities (Shanghai, Singapore, Dubai etc) as India globalizes rapidly. So, you really have to wonder what thought urban planners are putting into dealing with the nightmares that Indian cities are fast becoming.

McKinsey estimates the state government of Maharashtra will have to invest something in the region of $40-$50 billion to get Bombay up to Shanghai standards. Something tells me that's not going to happen at a time when the Maharashtra treasury is reputed to be bankrupt.

Given these circumstances, I have for some time advocated the building of entirely new cities where one could build world-class infrastructure from scratch, which might be a more effective use of money than trying out band-aid solutions (unless all of that money can actually be raised) on megalopolises like Bombay. These new cities do not have to be mega-affairs, but instead consist of an eco-system built around certain industries, say high-technology, and which provide world-class facilities and infra-structure to all its residents.

As it turns out, the private sector seems to be thinking along the same lines. Atanu sent me a link to Magarpatta City on the outskirts of Pune. I was more impressed by Mahindra City (built by the Mahindra conglomerate) off Madras, which is an attempt to build an eco-system (over 1400 acres of land) around the Information Technology and BPO businesses. Whatever one sees online looks impressive, but if you still have doubts, check out Infosys's decision to build the world's largest software development centre at Mahindra City. Spread over 130 acres, the Infosys centre will house 25,000 software professionals.

On the positive side, I think Bangalore will probably have world-class infrastructure in about 5 years from now, once all that building (that makes living there impossible right now) is over and done with. To the credit of the planners, the development of the ring roads are a step to encourage more investment along the periphery of the city than in the heart. All of this stuff does make this a particularly exciting time to be in India. Though Bangalore doesn't boast quite as many cranes as Shanghai, one can still sense something radical happening.