The shock of crumbling infrastructure and the solution

• India's infrastructure sector plays a critical role in driving the economy and realizing the government’s vision of becoming a developed nation by 2047. Major initiatives such as the PM Gati Shakti National Master Plan, National Logistics Policy, and Smart Cities Mission reflect this focus.
• The 2024 Budget further underscores this commitment with a significant capital expenditure allocation of ₹11.11 lakh crore (3.4% of GDP).

Challenges in Project Implementation:

• Despite the efforts, infrastructure projects in India continue to face several issues:
• Time Delays and Cost Overruns: A Ministry of Statistics report found that 431 projects (worth ₹150 crore or more) exceeded their costs by ₹4.82 lakh crore as of December 2023. Delays in 779 projects ranged from 1 to over 60 months, reflecting inefficiencies in project execution.
• Inefficient Project Management: Gaps in planning and management, particularly at the local government level, contribute to additional costs and inefficiencies. Lack of capacity in urban local bodies exacerbates delays and funding shortages for critical projects.

Need for Project Management Reforms:

• The traditional project management practices need an overhaul. Adopting modern tools, real-time data management, and integrating global best practices are critical for success:
• Global Best Practices: Countries like the UK, China, and Saudi Arabia have implemented specialized agencies focusing on project completion, ensuring better efficiency.
• PM Gati Shakti Initiative: A GIS-based ERP platform under PM Gati Shakti aims to monitor real-time progress across departments, reducing bureaucratic silos. However, the success of these efforts also depends on the quality of project implementation and the integrity of overseeing teams.

Program Management Approach:

• India can benefit from adopting a Program Management Approach, as demonstrated in industrial corridor projects like Shendra-Bidkin in Maharashtra. This approach coordinates human resources, time, and financial resources to deliver multiple projects in an integrated manner, ensuring alignment with mission objectives.

Need for a Professional Agency:

• To support infrastructure development, a dedicated agency should be established to offer professional project management courses. Similar to chartered accountant training in India, such courses would ensure higher accountability, ethics, and professionalism in project execution.

Conclusion:

• India’s infrastructure development is vital for its future as a global powerhouse. To overcome existing challenges, robust program management systems must be implemented. This will help prevent time and cost overruns, ensuring efficient and sustainable infrastructure development for the nation’s growth.