The aftermath of delayed central infra projects

What is the news?

According  to  the  Ministry of Statistics and Programme Implementation (MoSPI)

– As many  as 470 central sector projects have witnessed a combined  cost overrun  of  ₹4.37  trillion.

– 560  projects have an average time overrun of 46.94 months.

Why are the projects delayed?

The following factors have resulted in delays:

– Localized curbs

– Lack of infrastructure support and linkages

– Land acquisition delays

– Forest and  environment  clearances

– Delayed tendering, law and order  problems

– Inadequate manpower

What needs to be done?

The following key steps need to be taken:

– Improved management of infrastructure projects, including strengthening of internal processes to build in-house project management capabilities

– Enhanced stake-holder management for land acquisition

– Obtaining regulatory approvals, a dispute resolution mechanism in the public-private partnership model

– Establishment of robust project governance

What is the way forward?

Infrastructure creation plays a key role in economic development. Land is a state subject, and it is important that the Centre and States work together to make land acquisition a smooth and seamless procedure for investors.

The process of granting environmental clearances needs to be more efficient and transparent. Time-bound clearances and implementation norms should be adhered to by all. Senior officials should be made accountable.

Source: This post is based on the article “The aftermath of delayed central infra projects” published in Livemint on 4th Oct 2021.