The Shock of Crumbling Infrastructure in India

• Reports of under-construction bridge collapses in Bihar highlight issues of quality control and project implementation in India’s infrastructure sector.
• The infrastructure sector is a key driver of the Indian economy, with the government’s aim to make India a developed nation by 2047 linked to improvements in its infrastructure sector.
• The PM Gati Shakti National Master Plan (NMP), the National Logistics Policy, and the Smart Cities Mission have been implemented to advance India’s infrastructure.
• The government increased its capital expenditure allocation to ₹11.11 lakh crore (3.4% of GDP) in Budget 2024, indicating its commitment towards infrastructure development.
• Challenges within the sector include time delays and cost overruns, with 431 infrastructure development projects suffering a cost overrun of ₹4.82 lakh crore as of December 2023.
• Gaps in project management practices, especially in urban infrastructure projects, have resulted in additional expenditure burden on the government, crowding out funding for more deserving projects, and increasing procurement costs.
• Traditional project management practices need an overhaul to integrate modern tools and techniques, adopting global best standards on project management and prescribing procedures/guidelines for effective project execution.
• The National Master Plan launched under PM Gati Shakti aims to break the silos in government ministries/departments and bring all stakeholders to work on an integrated platform.
• A holistic “Program Management Approach” is needed to address these challenges, involving a systematic coordination of human resources, time, money, and information.
• Setting up an agency to conduct professional courses in project management will help develop professional ethics and responsibilities in project execution, monitoring, and oversight.