The state has become not merely the land broker for the pvt sector, but also the free infrastructure-provider, ultimately enabling pvt cos to profit from the created facility. In what is called the BOT (build-operate-transfer) model of investment, the govt first constructs the infrastructure, makes sure all the nuts and bolts are fastened and then hands over the facility to a pvt corporation - which can levy tolls and make profits on investment made with public money. This way the outlay for and risk of investment does not have to be borne by the company. The model was developed and tried out first in the US with the National Highway interstate system in the 1950s (there is a book called “Asphalt America”) which documents this.
Now we see the Orissa govt doing the same thing. it would be interesting to know which other state govts are doing such things:
More at Economic Times
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