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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.
