Stalled infrastructure projects will need Rs. 5.7 lakh crore more.

The Planning Commission has told Prime Minister Narendra Modi that additional funds of Rs. 5.7 lakh crore will be required to complete 738 central projects in various infrastructure sectors. Almost Rs. 5.6 lakh crore has already been expended on these projects.

Making a presentation on Infrastructure Targets & Performance for the current fiscal year to the Prime Minister on November 5, the Commission painted a dismal picture, stating that that 83 per cent of the 738 projects monitored face delays of three months to 12 years. This has resulted in cost overruns of Rs. 1.89 lakh crore.

The worst affected sector is the Railways, with 274 out of 289 projects delayed due to funds constraints (see table). Road, power, petroleum, coal and shipping projects, among others, also face delays and cost overruns.

While 252 of these 738 central projects are of Rs. 1,000 crore or more, the rest are in the Rs. 150 crore-Rs. 1,000 crore range.

The Commission has cited specific and generic causes for the delay, including land acquisition, environment, law and order issues, as well as inadequate diligence in project preparation.

To overcome the delays and cost overruns, the Commission has proposed efficiency parameters, including having a matrix based on key operational indices, outlining the performance in 2013-14 and targets for 2014-15.


HBL