Building infrastructure is only half the job

Reports of disappearing public infrastructure expose an institutional blind spot: India requires an infrastructure stewardship framework

Tarun Kumar | July 14, 2026


#Infrastructure  


Recent stories of stolen railway wires, disappearing communication towers and missing public infrastructure are often treated as bizarre law-and-order failures of India. Yet they raise a more fundamental question. Why does the State often discover the disappearance of a public asset only after it has already vanished?

 
The answer lies beyond policing. It lies in the evolution of India's public finance architecture. Over the past decade, India has fundamentally transformed the way it finances infrastructure. Public capital expenditure has increased from ₹2 lakh crore in 2014-15 to a Budget Estimate of ₹12.2 lakh crore in 2026-27. New institutions such as the National Investment and Infrastructure Fund (NIIF), NaBFID, Infrastructure Investment Trusts and the recently announced Infrastructure Risk Guarantee Fund reflect a financing ecosystem that increasingly combines public investment, institutional capital and private participation. Infrastructure is no longer viewed merely as expenditure. It has become the centerpiece of India's development strategy. That transformation deserves recognition. But it also exposes the next public policy challenge.
 
Public investment creates public assets. Public assets constitute public wealth. Yet India's institutional reforms have focused far more on financing infrastructure than on governing the public wealth that infrastructure creates. This distinction is rarely discussed in public finance. Governments naturally report capital expenditure because expenditure is measurable. Roads built, schools constructed, railway lines electrified and water pipelines laid become visible indicators of development. But expenditure alone cannot tell us whether those assets remain productive five years later. Are they functional? Who verifies them? What is their maintenance liability? Have they deteriorated, been encroached upon or quietly disappeared from administrative oversight?
 
A capable State should know the answer to each of these questions. Instead, public asset governance remains fragmented. Much of India's infrastructure ultimately rests with Urban Local Bodies and Panchayati Raj institutions, yet many continue to struggle with comprehensive asset registers, periodic physical verification, lifecycle costing and integrated digital inventories. Responsibility for one public asset may be divided among the implementing agency, the local government, an engineering department and multiple funding authorities. Ownership becomes diffused. Accountability follows.
 
This is why incidents of disappearing public infrastructure should not be dismissed as isolated criminal acts. They expose an institutional blind spot. The problem is not only that assets can be stolen. It is that governments often lack continuously updated systems capable of establishing what they own, where those assets are, what condition they are in and who is responsible for preserving them. The implications extend beyond administration into public finance itself.
 
India increasingly evaluates development through rising capital expenditure. But expenditure and public wealth are not identical. An asset that deteriorates prematurely, remains unusable or disappears entirely continues to exist in expenditure statistics, but no longer contributes to productive public capital. Public investment management has advanced considerably. Public asset management has not kept pace.
 
This is the next frontier of governance. India does not require another infrastructure mission. It requires an infrastructure stewardship framework. Asset registers should become interoperable across departments. Physical verification should become a routine part of financial reporting rather than an exceptional audit exercise. Maintenance should be planned through lifecycle budgeting instead of deferred until reconstruction becomes inevitable. Finance Commission incentives should reward the preservation of public capital alongside the creation of new assets.
 
India's infrastructure story is rightly celebrated for what it has built. The next chapter will depend on something less visible but equally important. States demonstrate their capacity not only by creating public assets but by governing the public wealth those assets represent. Until India's public finance architecture values stewardship as much as construction, disappearing public infrastructure will remain more than an odd news story. It will continue to expose the unfinished transition from financing infrastructure to governing public wealth.
 
Tarun Kumar is a Public Policy researcher associated with the School of Public Policy and Governance, Tata Institute of Social Sciences (TISS), Hyderabad. The views expressed are personal.
 

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