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Delay in Infrastructure Projects

9th December, 2021

Figure 4: No Copyright Infringement Intended

Context:

  • As many as 144 central infrastructure projects have reported delays in completion in the current financial year and the total cost overrun for these is ₹14,960.02 crore.

Steps for Faster Completion:

  • periodic review of projects under PRAGATI through video conferencing;
  • rigorous project appraisal;
  • online computerised monitoring system.

 

Reasons behind the delay:

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

 

Way Forward:

A study conducted by the Project Management Institute and KPMG in consultation with MoSPI in June 2019 recommended

  • 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.

 

Conclusion:

  • 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.