Free is the most expensive word in public policy: Nageswaran

Chief economic adviser Anantha Nageswaran said 'free is the most expensive word in public policy' at the Tamil Nadu Infrastructure Summit, organized by CII.

He stated that infrastructure built on the promise of free or below-cost services cannot attract patient capital.

Nageswaran outlined four conditions for infrastructure to be worthy of patient capital: quality infrastructure, contract certainty, policy certainty, and durable returns.

He emphasized that durable returns require a price covering the economic cost of a service and a public willing to pay a fair charge for it.

He warned that if users don't pay a fair charge, taxpayers pay hidden costs or assets decay due to lack of maintenance.