Holding the Infrastructure Up

The Economic Times 18th February 2021 Save

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Context: Push to infrastructure development in Budget 2021 is likely to serve as a bridge for resilient and inclusive growth.

Infrastructure Push: In Budget 2021-22.

Increased National Infrastructure Pipeline (NIP) scope: to 7,400 projects from 6,835 projects at the time of its launch in 2019.
Launched National Monetisation Pipeline: of potential brownfield infrastructure assets; would serve as a vital financing option for new infrastructure construction.
Infrastructure financing: through Development Finance Institution (DFI) with a capitalisation of Rs 20,000 crore.

Way forward: For progressing the infrastructure push provided by Budget 2021-22

Steady support to the DFIs: Perceive DFI as providers of steady countercyclical support, rather than crisis management institutions.
Focus on timely completion and cost-efficient project management: According to the ministry of statistics and programme implementation report, 450 infrastructure projects have been hit by cost overruns, and 558 were delayed.
Enhance the role of National Programme and Project Management Policy Framework (NPMPF) in infrastructure development: Action plan of the framework includes:
- Adoption of a programme and project management approach to infrastructure development,
- Institutionalisation and promotion of the profession of programme and project management,
- Building a workforce of such professionals, and
- Enhancing the institutional capacity and capability of professionals.
Take steps for enforcement of contracts:
- By a major overhaul in judicial process like setting up of special courts for settling disputes related to infrastructure projects.
  - India ranked 163^rd out of 190 countries in enforcing contract as per the World Bank Doing Business Report 2020.
  - Time taken in India for resolving a dispute is more than Organisation for Economic Cooperation and Development countries, Indonesia, China and Brazil.