Welcome write-off: Acknowledging failure of 116 projects is the first step

Source: The post is based on an article “Welcome write-off: Acknowledging failure of 116 projects is the first step” published in Business Standard on 8^th November 2022.

Syllabus: GS 3- Infrastructure

News: A report from the NITI Aayog has recommended the removal of 116 infrastructure projects from the overall project-monitoring system.

These public funded projects have not been completed and have been delayed due to various reasons.

What are the reasons behind the delaying of the projects?

Land acquisition – This is one of the major problems faced by any infrastructure projects. Land acquisition with private parties is not the only problem, at times there are also disputes between the Union and state governments over land issues.

Share of Funds: There have been tussles between the central and state government over sharing the fund on infrastructure projects. State governments have stepped behind funding the projects which has caused delay in those projects.

Environmental clearances –These have also caused delay in the projects.

Other reasons behind the delay of the projects are red tape, internal disagreements, etc.

What is the way forward?

Land acquisition problems have been reduced from the past due to the increasing financialisation of savings, greater financial literacy, and the spread of bank accounts.

However, there is a need that the government should come up with a proper compensatory mechanism that can help land acquisition and help to gain trust of the landowners.