We should build new cities, says K P Singh

Life hasn't slowed down for K P Singh, the 91-year-old chairman of real estate giant DLF, despite stepping down from running the business. "The moment you start getting slowed down, somewhere you will be finished in a year or two," he tells TOI as he settles down for an interview at his Lutyens Delhi villa. He calls for reworking the urban infrastructure and building new cities, instead of retrofitting existing ones.Excerpts:
How do you find the current government's performance?
Better than any other that I have seen. It is decisive, you are seeing large investments and the economic policy is quite good. In an atmosphere heavily dominated by the after effects of Covid, India is a shining star. It is based purely on good governance, and I find that in every section, except urban infrastructure, which needs attention. Growth will happen in India. It is not because of a government. We have very talented entrepreneurs and a young workforce. So, it is unleashing the power. which PM Modi has done. The old ways of business have changed through structural and governance reforms and through digitisation.
How do you balance requirement of urbanisation with retaining cities in their shape?
In 1950s, India adopted a socialistic pattern of society as a way of living, the motto was 'Think small and manage shortages' and it was adopted in every sector. Unlike other sectors, in urban infrastructure, you can't set right a mistake that you make once. Once made cannot be set right. You need a master plan that is developed by people, who can think how the country is going to be 50 or 100 years ahead, not 10-15 years. India is still in the process of 'thinking small'. Unless this mindset changes by a direction from the topmost agency, you cannot set things right. Just as rural infrastructure, PM Modi has to set things right for urban infrastructure too. As we move to a $5 trillion economy, we should build new cities.
So, the focus should change from retrofitting through 'smart cities' to building new ones?
Smart city is nothing else but putting first aid on something. That is not the answer. Growth means migration for people from rural areas for jobs. Now, this kind of growth needs new cities. You can't change the entire fabric of the road network, you cannot change the drainage, you cannot change the water supply, you cannot change the electricity. How many cities would you reckon since Independence, whereas McKinsey (in a report) said that every year, India needs one Chicago.
A new city needs land, who will acquire land?
First thing is to amend the law to allow the government to acquire land for building townships then auction it out. When you auction, there must be very strong eligibility criteria, otherwise you give it to some Tom, Dick and Harry and they will make the wrong type of cities. The location is crucial as it has to be close, like we built Gurgaon. Lavasa failed because it was a little too far away from Pune. Pune's urban sprawl stopped after 6-7 kilometers. If you make something about 30 kilometers, it won't succeed.
The insolvency law hasn't helped homebuyers get their property. What are the problems with it?
I can't comment on that because it didn't pertain to me and therefore, I didn't study it. If you carefully examine why those companies have not delivered, the reason is that a lot of hanky-panky was going on in the pricing. They would take money, some through cash, and later when the market dipped, there was no money left. All such people are being punished now, they are in jail. Things are changing now, especially with RERA.
Will the recent Adani episode be detrimental to India?
No. I don't know Adani personally. But Adani is an entrepreneur like me. An entrepreneur's nature has to be a risk taker. Then, you need vision. The good side I find with Adani is that all his companies are operation-wise profitable. If you are too loaded with debt and no equity, it is dangerous. He was rightly trying to raise equity. When you do an IPO type of thing, all kinds of characters come. My feeling is, Adani will come back again. It is not the end of the story.
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This is a law of nature, whenever you go up, the law of gravity brings you down. If you have strength then you go, you are pure.