Efforts of Prime Minister Narendra Modi is to push delayed infrastructure projects are paying off. As of January, about a quarter of 1,201 projects valued at 16.9 trillion rupees were delayed, two years back down from 43%, as per the government report which is seen by Bloomberg News.
Overruns of cost have come down to 11% from 20% from 2015 March. Of the total projects, each worth at least 1.5 billion rupees -- 329 are running behind schedule, 293 have cost overruns, while 95 have both time and cost overrun compared to their original implementation schedules.
From May 2014 coming to power, Narendra Modi is reviewing infrastructure projects, for ministries setting targets, taking steps to ease bottlenecks and encouraging overseas companies to set up factories.
Still from projects the sectors include Coal, Power, Petroleum, Railways and roads have been running behind the schedule, due to the delay in attracting finance, land acquisition and environmental clearances and a lack of infrastructure support and linkages.
Implemented by the government initiatives such as the decision of delegation, making power, setting deadlines and reforming contract rules, the stalled public projects stared moving, said Manish Agarwal, Leader, Capital Projects & Infrastructure, PricewaterhouseCoopers India. "Government intentions have translated into reality."
The focus of Government is on an "increase in public spending, completion of stalled projects rather than the announcement of new projects, the resolution of private stalled projects and bringing new projects into the market for private investment," said Agarwal.
The recent step of government is to reduce non-performing assets of banks, in a private investment there will be some increase, as said by Agarwal.
In the latest meeting review on 26th April, Narendra Modi called for a consolidated approach to the projects existing.
In the next 5 years India need $646 billion investment to meet the infrastructure demand, in April said by the Finance Minister Arun Jaitely.