Holding the Infrastructure Up

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.

Conclusion: A robust ecosystem for project implementation is a must for efficient development of infrastructure in India.