Issues in India’s infrastructure projects

Source: The post issues in India’s infrastructure projects has been created, based on the article “The shock of crumbling infrastructure and the solution” published in “The Hindu” on 14th August 2024

UPSC Syllabus Topic: GS Paper 3- infrastructure

Context: The article highlights issues in India’s infrastructure projects, such as delays, cost overruns, and quality control problems. It emphasizes the need for better project management and modern tools to improve efficiency and avoid failures in future developments.

For detailed information on India’s infrastructure read this article here

What is the state of India’s infrastructure sector?

1. India’s infrastructure sector is vital for economic growth.
2. The government is committed to improving it with initiatives like the PM Gati Shakti National Master Plan, National Logistics Policy, and the Smart Cities Mission.
3. In Budget 2024, capital expenditure was increased to ₹11.11 lakh crore (3.4% of GDP).

What are the issues in India’s infrastructure projects?

1. Time Delays and Cost Overruns: India’s infrastructure projects often face significant time delays and cost overruns. According to a Ministry of Statistics and Programme Implementation report from December 2023, 431 projects had a combined cost overrun of ₹4.82 lakh crore.
2. Percentage of Delayed Projects: The report also noted that 36% of the projects were delayed between 25 to 60 months, contributing to extended timelines and increased costs.
3. Project Management Gaps: Many projects suffer from poor planning and execution, particularly those managed by local urban bodies, which lack adequate capacity and expertise. This inefficiency leads to additional government expenditures and crowds out funding for more deserving projects.
4. Quality Issues: The repeated collapses of under-construction bridges in Bihar highlight severe quality control issues, emphasizing the need for improved project management and oversight practices.

What Should be Done?

1. Adopt Advanced Project Management Tools: Implement modern management techniques involving real-time data to handle projects efficiently. This aligns with practices in countries like the UK and China, which focus on data-driven approaches for better project execution.
2. Enhance Training and Skills: Establish a professional agency for project management education, similar to the Institute of Chartered Accountants of India. This can develop a workforce skilled in efficient project oversight and execution.
3. Integrate Departments via PM Gati Shakti: Use the GIS-based ERP portal from the PM Gati Shakti National Master Plan to coordinate all government departments, ensuring timely and organized project progress.
4. Apply a Program Management Approach: Emulate the systematic coordination used in the Shendra-Bidkin Industrial Corridor project, which managed multiple packages simultaneously to prevent delays and cost overruns.

Question for practice:

Examine the key issues in India’s infrastructure projects and suggest potential solutions for improving project management and execution.