Status of Infra Sector in India

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Context:

Reports on the collapse of a series of under-construction bridges in Bihar have highlighted the issues of quality control and project implementation in infrastructure in India.

Major challenges in India’s infrastructure sector

Time delays and cost overruns

• A report by the Ministry of Statistics and Programme Implementation reveals that as many as 431 infrastructure development projects, each with investments of ₹150 crore or more, suffered a cost overrun of ₹4.82 lakh crore, as of December 2023.
• Moreover, the percentage of delayed projects hit a three-year low in March this year.
• Out of 779 projects delayed, 36% were running behind schedule for a period between 25 to 60 months, 26% for one to 12 months, 23% for 13 to 24 months, and 15% for over 60 months averaging a three-year delay.

Need for multiple clearances:

Any industrial or commercial activity in India requires multiple clearances from the time of conception to the commissioning of the project.

Gaps in project management practices:

The implementation status of most of the projects shows gaps in project management practices, especially in urban infrastructure projects, including a lack of comprehensive planning and management by urban local bodies, and a lack of capacity of local self-government institutions.

Increased procurement costs:

Time delays result in crowding out of funding for more deserving projects and increase procurement costs.

Deficiency in the planning stage:

Sufficient attention, time and expertise are not devoted during the project planning stage.

Way ahead

• Traditional project management practices require an overhaul to integrate modern tools and techniques that involve real-time data management to ensure timely interventions.
• An enabling policy framework should consider global best standards for project management.
• The government should prescribe procedures/guidelines for effective project execution in the public sector and public-private partnership projects.
  • • In the United Kingdom, the Infrastructure and Projects Authority has a special emphasis on the processes involved in project completion. China, Saudi Arabia and a few other countries have set up similar agencies for end-to-end project deliveries.
• Program Management Approach to holistically manage multiple projects systematically, integrating resources, time, and information efficiently, such as in projects like the Shendra-Bidkin industrial corridor, may be adopted.

How does PM Gati Shakti aim to address issues in infrastructure development in India?

Under PM Gati Shakti, the National Master Plan has been launched to break the silos in which government ministries/departments work to bring all stakeholders to work on an integrated platform.

Integrated planning

The platform brings together 16 ministries, including Railways and Roadways, to plan and implement infrastructure projects

Real-time progress monitoring

The platform uses a GIS-based ERP portal to monitor the progress of various departments in real-time.

Standardised procedures

The platform aims to facilitate the laying down of standardised procedures and timelines by all the agencies providing clearances.

Visual depiction:

This will provide a visual depiction of the National Master Plan and it will also integrate, through the application programming interface, the real-time progress of various departments.

Read more about PM Gati Shakti in the following links:

https://www.iasgyan.in/daily-current-affairs/gati-shakti-portal  https://www.iasgyan.in/daily-current-affairs/pm-gati-shakti

Other Government initiatives

• The National Logistics Policy
• The Smart Cities Mission
• National Infrastructure Pipeline
• Pradhan Mantri Gram Sadak Yojana (PMGSY)
• National Industrial Corridor Programme
• Further, the government increased its capital expenditure allocation to ₹11.11 lakh crore (3.4% of GDP) in Budget 2024, indicating the government’s commitment towards infrastructure development.

Conclusion:

The infrastructure sector has been one of the key drivers of the Indian economy. The government’s aim of making India a developed nation by 2047 is linked to improvements in its infrastructure sector.

Sources:

https://www.thehindu.com/opinion/op-ed/the-shock-of-crumbling-infrastructure-and-the-solution/article68639476.ece

https://www.newindianexpress.com/magazine/voices/2024/Jul/06/indias-infrastructure-crisis-are-whatsapp-forwards-the-new-safety-net#:~:text=The%20accidents%20in%20Indian%20Railways,no%20visible%20improvement%20in%20services.

https://www.livemint.com/news/india/vision-2047-infra-to-be-biggest-driver-for-growth-push-11703439561175.html

PRACTICE QUESTION Q.Discuss the challenges faced by the infrastructure sector in India in terms of quality control and project implementation. Highlight the role of the PM Gati Shakti initiative in addressing these challenges. ( 250 words)