The Economic Survey 2010-11 said timely completion of infrastructure projects remains the top priority for sustaining growth momentum and called for streamlining land acquisition and environment clearance for the core sector projects.
“The foremost (challenge) is to make huge capacity addition in a time-bound manner while ensuring that projects embody value for money and investments result in world class infrastructure,” the survey tabled in Parliament today, said.
Stating the level of investment and capacity addition achieved so far in the current Plan period is indicative of an “optimistic outlook” for the entire infra sector, the survey, however, said “several non-financing” constraints needed to be urgently addressed to avoid time and cost overruns.
Though the actual expenditure in the 10 infrastructure sectors stood at Rs 10,65,828 crore during the current Plan period’s first three years against the target of Rs 9,81,119 crore, the survey said that capacity addition was lower than aimed in power, roads and railway lines.
Quoting a preliminary assessment made by the Planning Commission, the survey also mentioned that the infrastructure sector needs a whopping Rs 41 lakh crore investment in the 12th Plan period.
“There is an urgent need to streamline land acquisition and environment clearance for infrastructure projects,” the survey said.
It added that there was a strong case to bring in parity between the compensation package admissible under the Land Acquisition Act 1894 and that applicable under the National Highways Act 1956 to enable faster acquisition.
“The price discovery issues could perhaps be circumvented by allowing private parties to bid for supply of the land involved...A national forest land bank, with clear paperwork and titles, could significantly reduce the approval time for forest clearances,” it said.
It said that out of the 559 projects, currently being monitored by the Department of Programme Implementation (DPI), as on October last year, 14 are ahead of schedule, 117 are on course and 293 are delayed.
DPI monitors the progress in central sector projects costing Rs 150 crore and above on a monthly basis.
In the road transport and highways sector, 51 projects have reported delay of upto 36 months, 20 power projects upto 18 months over the targeted schedule of completion. A total of 16 projects in oil sector have reported upto 16 months overrun.
It said there is also a need to reassess the existing criteria and priorities used for allocation of funds to different sectors, for example, taking into account growing need for peaking power rather than the base load capacity in the power sector.
