The shock of crumbling infrastructure and the solution
As a key driver of the Indian economy, the infrastructure sector cannot be subject to failures; having a robust programme management system is important.
India’s infrastructure sector is a key pillar of its economic growth, playing a vital role in driving the country’s progress. However, recent reports of collapsing bridges and other infrastructure failures highlight serious issues with quality control and project management. In particular, the frequent collapse of under-construction bridges in Bihar has raised concerns about the sector’s ability to meet the demands of a growing economy. Given that India’s goal of becoming a developed nation by 2047 heavily depends on infrastructure improvements, ensuring robust systems for managing and executing projects is critical.
(i) The Role of Infrastructure in Economic Growth
The infrastructure sector is one of the major drivers of India’s economic growth. The government has launched several initiatives aimed at modernizing the country’s infrastructure, including the PM Gati Shakti National Master Plan (NMP), the National Logistics Policy, and the Smart Cities Mission. These programs are designed to improve transportation, logistics, and urban infrastructure, making India a more efficient and competitive economy. In the 2024 budget, the government committed ₹11.11 lakh crore for capital expenditure, equivalent to 3.4% of GDP, demonstrating its commitment to infrastructure development.
Despite these efforts, infrastructure projects in India continue to face a range of challenges, including delays and cost overruns, poor project management, and a lack of accountability. Addressing these challenges is essential if India is to realize its ambition of becoming a global economic powerhouse.
(ii) Infrastructure Challenges in India
One of the most pressing issues in India’s infrastructure sector is the frequent occurrence of time delays and cost overruns. According to a report by the Ministry of Statistics and Programme Implementation, as of December 2023, 431 infrastructure projects with an investment of ₹150 crore or more had suffered a cost overrun of ₹4.82 lakh crore. Additionally, 779 projects were delayed, with some running behind schedule by as much as three years. These delays and cost overruns place a significant financial burden on the government, crowding out funding for other important projects and leading to higher procurement costs.
The underlying causes of these delays are complex and varied. One major issue is the need for multiple clearances and approvals at various stages of project implementation. This bureaucratic red tape slows down projects and increases the likelihood of delays. Additionally, many projects suffer from poor planning and management, especially in urban areas. Urban local bodies and local self-government institutions often lack the capacity and expertise to effectively manage large-scale infrastructure projects, leading to inefficiencies and added costs.
(iii) The Importance of Effective Project Management
To overcome these challenges, India must invest in better project management practices. Many infrastructure projects in India suffer from insufficient planning at the early stages, resulting in poorly executed projects that fail to meet deadlines or stay within budget. Building expertise in project management will be crucial for ensuring that future infrastructure projects are completed on time and to a high standard.
While some organizations in India are starting to recognize the need for more structured project management, many are still relying on outdated methods. Traditional project management practices, which often involve manual data collection and reporting, are not well-suited to the complexities of modern infrastructure projects. Instead, there is a need to adopt more advanced tools and techniques that allow for real-time data management and analysis. By using modern project management systems, India can improve the efficiency and effectiveness of its infrastructure projects.
(iv) Learning from International Best Practices
Several countries have successfully implemented multi-faceted approaches to improving infrastructure project management. For example, the United Kingdom has established the Infrastructure and Projects Authority, which focuses on ensuring that projects are completed on time and within budget. Similarly, countries like China and Saudi Arabia have set up agencies dedicated to managing large-scale infrastructure projects from start to finish.
India can learn from these international examples by setting up its own agencies to oversee infrastructure projects. The PM Gati Shakti initiative, launched under the National Master Plan, is a step in the right direction. It aims to break down the silos in which different government departments operate, allowing for better coordination and integration across various stakeholders. By using a GIS-based ERP (Enterprise Resource Planning) portal, PM Gati Shakti enables real-time monitoring of infrastructure projects, providing a visual depiction of progress and integrating data from various departments. However, while technology can help streamline project management, it is equally important to ensure the quality of project implementation and the integrity of the teams overseeing these projects.
(v) The Solution: A Program Management Approach
To address the ongoing issues in India’s infrastructure sector, a comprehensive “Program Management Approach” is needed. This approach has been successfully implemented in projects like the Shendra-Bidkin industrial corridor in Aurangabad, Maharashtra. Program management involves the coordinated management of resources, time, money, and information to deliver multiple projects in a unified and systematic manner. It is particularly useful for large, complex projects that require the integration of various activities and stakeholders.
By adopting a program management approach, India can ensure that infrastructure projects are planned and executed more efficiently. This approach relies on well-defined business processes and proven tools to achieve project objectives within specified timeframes and budget constraints. One of the key benefits of program management is that it allows for better coordination and communication across different teams and departments, reducing the likelihood of delays and cost overruns.
(vi) Building a Skilled Workforce
In addition to improving project management processes, India must also invest in developing a skilled workforce capable of managing large-scale infrastructure projects. Setting up an agency dedicated to training professionals in project management, similar to the Institute of Chartered Accountants of India, would help build the necessary expertise and ensure that projects are executed to high standards.
A professional project management agency could offer courses and certifications in project management, equipping workers with the skills and knowledge needed to oversee complex infrastructure projects. This would help establish a culture of professionalism and accountability in the infrastructure sector, reducing the risk of poor-quality work and project failures.
(vii) Conclusion
As India continues to invest heavily in its infrastructure sector, ensuring the success of these projects will be critical to the country’s future economic growth. While the government has taken steps to improve infrastructure through initiatives like PM Gati Shakti, more needs to be done to address the underlying issues of time delays, cost overruns, and poor project management.
Adopting a program management approach, combined with investing in a skilled workforce and modern project management tools, will help India build the infrastructure it needs to support its development goals. By implementing these changes, India can create a future-ready infrastructure that will drive economic growth and improve the quality of life for its citizens.
