PM's efforts to complete infrastructure projects paying off
About a quarter of 1,201 projects valued at 16.9 trillion rupees were delayed as of January, down from 43 % two years back. Cost overruns have also come down to 11 %from 20 % from March 2015. Of the total projects 329 are running behind schedule, 293 have cost overruns, while 95 have both time and cost overrun compared to their original implementation schedules.
Since May 2014, Modi has been reviewing infrastructure projects, setting targets for ministries, taking steps to ease bottlenecks and encouraging overseas companies to set up factories. The projects from Coal, Power, Petroleum, Railways and Road Sectors have been running behind schedule, because of a delay in attracting finance, land acquisition and environmental clearances and a lack of infrastructure support and linkages.
As the government implemented initiatives in the form of delegation of decision-making power, setting deadlines and reforming contract rules, started to work, the stalled public projects started moving. Government intentions have translated into reality.
There is a focus on an increase in public spending, completion of stalled projects, the resolution of private stalled projects and bringing new projects into the market for private investment. With the government's steps to reduce non-performing assets of banks, an increase in private investment is anticipated. India needs $646 billion investment in the next five years to meet its infrastructure demand.