Reports on the collapse of a series of under-construction bridges in Bihar have highlighted the issues of quality control and project implementation in infrastructure in India. In some instances, these have been megaprojects. The number of such incidents where bridges have collapsed could be 10 or even more. The infrastructure sector has been one of the key drivers of the Indian economy. The government’s aim of making India a developed nation by 2047 is linked to improvements in its infrastructure sector. Steps to advance India’s infrastructure have taken shape in the form of the PM Gati Shakti National Master Plan (NMP), the National Logistics Policy and the Smart Cities Mission among others. Further, the government increased its capital expenditure allocation to ₹11.11 lakh crore (3.4% of GDP) in Budget 2024, indicating the government’s commitment towards infrastructure development.
Related Stories
The challenges within
However, the sector still struggles with certain issues and challenges. One of the most common issues faced by most projects, particularly those that are government-sponsored, are time delays and cost overruns. A report by the Ministry of Statistics and Programme Implementation reveals that as many as 431 infrastructure development projects, each with investments of ₹150 crore or more, suffered a cost overrun of ₹4.82 lakh crore, as of December 2023. Moreover, the percentage of delayed projects hit a three-year low in March this year. Out of 779 projects delayed, 36% were running behind schedule for a period between 25 to 60 months, 26% for one to 12 months, 23% for 13 to 24 months, and 15% for over 60 months averaging a three-year delay.
Any industrial or commercial activity in India requires multiple clearances from the time of conception to the commissioning of the project. The implementation status of most of the projects points to gaps in project management practices, especially in urban infrastructure projects, including a lack of comprehensive planning and management by urban local bodies, and a lack of capacity of local self government institutions. All this results in an additional expenditure burden on the government, crowds out funding for more deserving projects and increases procurement costs. It has also been observed that sufficient attention, time and expertise are not devoted during the project planning stage. Therefore, building our experience in project management is crucial for India to continue on its high-growth trajectory in years ahead. While organisations are realising the need for structured project management, many are looking at short-term programmes to enhance the skill sets of their existing project teams.
Traditional practices need an overhaul
Traditional project management practices require an overhaul to integrate modern tools and techniques that involve real-time data management and then crunching that data. An enabling policy framework should consider global best standards on project management and prescribe procedures/guidelines for effective project execution in public sector and public-private partnership projects.
Various countries have adopted multi-pronged approaches to address these issues. In the United Kingdom, the Infrastructure and Projects Authority has a special emphasis on the processes involved for project completion. China, Saudi Arabia and a few other countries have set up similar agencies for end-to end project deliveries.
Under PM Gati Shakti, the National Master Plan has been launched to break the silos in which government ministries/departments work to bring all stakeholders to work on an integrated platform. This initiative has set benchmarks for all departments to achieve the proposed targets and deadlines. PM GatiShakti is being demonstrated through a GIS-based ERP portal wherein the objective is to monitor real-time progress. This will provide not only visual depiction of the National Master Plan but will also integrate, through application programming interface, real-time progress of various departments. However, the quality of projects during implementation and the integrity of the team overseeing the projects will also be critical.
To address these challenges, a holistic “Program Management Approach” is needed. This approach was adopted in the industrial corridors development projects, beginning with the Shendra-Bidkin in Aurangabad, Maharashtra. This involved a disciplined and systematic coordination of human resources, time, money, and information to plan and deliver multiple projects in a unified manner. It is typically employed when the mission involves significant resource expenditure and requires the integration of diverse activities (as in Shendra-Bidkin, with over nine packages taken up simultaneously).
Set up an agency
Programme management relies on well-defined and proven business delivery processes and tools to achieve the overall mission objectives within specified time and budget constraints. This can only be achieved if we are able to develop an industry-ready workforce. Setting up an agency to conduct professional courses in project management along the lines of The Institute of Chartered Accountants of India and chartered engineers in various other countries, will help in developing professional ethics and responsibilities in project execution, monitoring and oversight.
The government has allocated a substantial budget of taxpayers’ money for infrastructure projects. As India moves ahead to become a global powerhouse, it is crucial to prevent time and cost overruns as well as the repeated failure of under-construction projects. Implementing a robust programme management system is essential to achieving this goal. Such a system will bring much-needed efficiency to create future-ready infrastructure, paving the way for an affluent and safe future for Indian citizens.
Alkesh Kumar Sharma is a former Secretary, Government of India and was the CEO and MD of the Delhi Mumbai Industrial Development Corporation (DMICDC) Limited
Published - September 14, 2024 12:08 am IST
