If delhi metro can why can’t the rest

If delhi metro can why can’t the rest

A report by the ministry of statistics and programme implementation highlights the tardy pace of project implementation in the country. Of the total 1,661 infrastructure projects in the central sector, each of which costs at least Rs 150 crore, 441 projects are faced with cost overruns as on September 1, 2020.

This is mainly due to delays in land acquisition, green clearance and law and order problems. With the expected contraction of the economy this fiscal, averting project delays and expeditious execution are more important than ever as these projects can add to economic recovery.

A major problem that impedes infrastructure development is land acquisition. Anyone who has to give up land must be compensated for its growing valuation over time.

A viable option would be through leasing or an annuity-based system as practised in some states. The rest of the clearances should be given expeditiously.

There is no reason why green clearances cannot be given within a reasonable time frame after an environmental assessment impact. Project financing should be tied up expeditiously and funds released when required. Monitoring must be rigorous, and open to scrutiny by any interested party.

The total cost of implementation of 1,661 projects is estimated at about Rs 25.26 lakh crore against the original cost of Rs 20.9 lakh crore, reflecting a cost overrun of 20.81%. The highest number of delayed projects are in Railways, followed by road transport, highways and petroleum.

Delays lengthen gestation periods, depressing output per unit of capital invested. Nine projects (original cost of `16,106 crore) are ahead of schedule and 206 projects (original cost `5.09 lakh crore) are on schedule.

This is welcome. Both government agencies involved in project approvals and the private party involved in implementing the project should be held to account for delays at their end. The government should also act to remove the fear of criminal intent being discovered behind any exercise of discretion, to speed up project implementation, and boost the economy.