Delays result in central infrastructure projects

What is Progress Report?

Monitors infrastructure projects of MoSPI ₹150 crores and above. The August 2021 report shows that out of 1,718 central infrastructure projects, 560 projects reported delays in the original deadline, while 86 projects, of which 36 are mega projects worth more than Rs. ₹1,000 crore, has reported further delay. The sector-wise break-up shows that around 1,522 projects in road transport and highways, railways, petroleum, coal and power are being monitored. Delay likely to increase cost ₹4.37 trillion, or 19.9% ​​of the original cost, as against 8.59% in the quarterly project status (April-June 2021).

Why delay projects?

While localized restrictions delayed all projects, project implementing agencies also blamed factors such as lack of infrastructure support and linkages, delays in land acquisition, forest and environment clearances, delayed financing tie-ups, delayed tenders, law and order problems. attributed to the delay. Inadequate manpower, delay in finalization of detailed engineering and change in project scope. Physical and financial capital and infrastructure is one of the six pillars of the FY 2012 budget proposal and the administrative ministries concerned need to review the projects and ensure that cost and time overruns are minimized.

What are the major measures proposed in the Budget 2021-22?

The focus is on building world class infrastructure and making the country a manufacturing hub. The National Infrastructure Pipeline with 7,400 projects, the Development Financial Institution, which is seen as a provider, promoter and catalyst for infrastructure funding, and the National Monetization Pipeline₹6 trillion is some measure.

Where are the flaws in the implementation?

A study conducted by Project Management Institute and KPMG in consultation with MoSPI in June 2019 recommended better management of infrastructure projects, including strengthening of internal processes for building in-house project management capabilities and for land acquisition. Includes stake-holder management, obtaining regulatory approvals. Establishment of a dispute resolution mechanism, and robust project governance in a public-private partnership model.

What steps need to be taken?

Building infrastructure plays an important role in economic development. Land is a state subject, and it is important that the Center and states work together to make land acquisition a smooth and seamless process for investors. There is a need to make the process of environmental clearance more efficient and transparent. All must adhere to time bound approvals and implementation norms. Senior officers should be made accountable.

Jagdish Shettigar and Pooja Mishra are faculty members at BIMTECH.