Revelations help to explain.

On 31 August wsj.com reported that investments in infrastructure plunged 46%. Companies are trying to sell stakes in projects but no one is buying. The government has no money and the private sector has no interest in railways, irrigation, water and sanitation, ports and power distribution. Yet everywhere we go we have to pay exorbitant charges. Roads have toll collection every 25-50 kms. Delhi Airport is the most expensive in the world in terms of airport taxes. Not only do departing passengers have to pay airport tax, as in other parts of the world, but even arriving and transiting passengers are being milked. The CAG estimates that DIAL, the consortium which developed and runs the airport, has been given land around the airport, at Rs 100 per annum, from which it can earn Rs 1.63 trillion over 60 years. In a revealing article in the TOI on 30 September, Mr SA Aiyar writes," Five years ago investors were pouring money into infrastructure companies, and their share prices skyrocketed. Everybody thought these companies were entering a golden period. This included politicians who demanded huge kickbacks ( the 2G scam is only the tip of the iceberg )." Today all these companies are in serious financial difficulties and their share prices have crashed. GMR Infrastructure, which runs Delhi Airport, lost Rs 940 million in April-June quarter and its share price is down from Rs 131 to Rs 24. GVR Projects and Infrastructure lost Rs 640 million and its shares are down from Rs 85 to 14. Lanco Infratech lost Rs 4.41 billion in the last quarter and cannot repay its debts. Its shares are down from Rs 84 to 14. Hindustan Construction lost Rs 2.22 billion in 2011-2012 and its shares are down from Rs 132 to Rs 17. Reliance Power is down from Rs 500 to Rs 97, Reliance Infratech is down from Rs 2584 to Rs 545, Reliance Communications is down from Rs 820 to Rs 65 and Idea Cellular is down from Rs 157 to Rs 85. Companies were stupid and bid for projects thinking that they can only make profits from collecting fees from users. Indeed the previous Finance Minister, who has now been elevated to President, boasted that companies were paying the government billions of rupees to be granted contracts for building roads. However, they were given vastly exaggerated estimates of how many users to expect and were made to pay huge bribes in expectation. They did not get access to land for building, environmental and other clearances were delayed because of infighting between different ministries ( there are a total of 47 ministries at the center alone ) and a change of state government to a hostile political party could mean the cancellation of a project altogether. This government, led by the World Famous Economist, is the most corrupt and useless the country has ever had. Sadly people like Mr Aiyar seldom write such informative articles. Usually they are in praise of how honest and capable he is. Absolutely wrong.