Prime Minister Modi’s top priority has been providing the country with world-class infrastructure. Whether it is railways, roads, ports, or airports, the Narendra Modi government has given a massive boost to infrastructure.
Now, he has taken delays in infrastructure projects head-on and because of that the delays have ended.
According to a government report, about a quarter of 1,201 projects valued at 16.9 trillion rupees ($262 billion) were delayed as of January, down from 43% two years back. The enormity of the infrastructure projects in the pipeline can be ascertained from the fact that the value of these 1,201 projects is equivalent to 92% of Pakistan’s GDP.
Ever since coming to power, Prime Minister Modi has been reviewing infrastructure projects, setting targets for ministries, taking steps to ease bottlenecks and encouraging overseas companies to set up factories under the ‘Make in India’ program.
From March 2015, cost overruns have also come down from 20 percent to 11 per cent. Even though projects from sectors including coal, power, petroleum, railways and road have been running behind schedule, mainly because of delays in attracting finance, land acquisition and environmental clearances, the delays have drastically fallen.
The government has implemented initiatives such as the delegation of decision-making power, setting deadlines and reforming contract rules, which has resulted in stalled public projects coming back to life. Manish Agarwal, Leader, Capital Projects & Infrastructure, Price water house Coopers India said that government intentions are translating to reality.
He said, “The government is focusing on an increase in public spending, completion of stalled projects rather than the announcement of new projects, the resolution of private stalled projects and bringing new projects into the market for private investment.”
It is said that India needs another $646 billion worth of investment in the next five years to meet its infrastructural needs.
Some ambitious projects of the government include building a landmark taller than the BurjKhalifa in Mumbai, the longest railway bridge in Kashmir, and a railway line connecting Delhi and Kashmir for an expense of Rs 10,000 crore.