Once a month, PM Modi steps in to revive stalled projects

Once a month, Mr. Modi holds a meeting with top bureaucrats to check why projects have not got off the ground.

October 30, 2015 12:45 pm | Updated 03:07 pm IST - NEW DELHI

Hindu nationalist Narendra Modi, then-prime ministerial candidate for India's main opposition Bharatiya Janata Party (BJP) and Gujarat's chief minister, attends the Confederation of All India Traders (CAIT) national convention in New Delhi, India, in this February 27, 2014 file photo. Rashtriya Swayamsevak Sangh (RSS), an ascendant Hindu nationalist group, wants minority Muslims and Christians to accept that India is a nation of Hindus, and is pushing some of them to convert. An election in the volatile state of West Bengal has become a prime target in its game plan. The group's strategy: To spread its Hindu-first ideology to all corners of India by propelling the ruling party of Prime Minister Narendra Modi to power in as many states as possible. To match Special Report INDIA-RSS/ REUTERS/Stringer/Files

Hindu nationalist Narendra Modi, then-prime ministerial candidate for India's main opposition Bharatiya Janata Party (BJP) and Gujarat's chief minister, attends the Confederation of All India Traders (CAIT) national convention in New Delhi, India, in this February 27, 2014 file photo. Rashtriya Swayamsevak Sangh (RSS), an ascendant Hindu nationalist group, wants minority Muslims and Christians to accept that India is a nation of Hindus, and is pushing some of them to convert. An election in the volatile state of West Bengal has become a prime target in its game plan. The group's strategy: To spread its Hindu-first ideology to all corners of India by propelling the ruling party of Prime Minister Narendra Modi to power in as many states as possible. To match Special Report INDIA-RSS/ REUTERS/Stringer/Files

Prime Minister Narendra Modi is personally taking on India's notorious red tape to clear tens of billions of dollars worth of stalled public projects, hoping that his hands-on intervention can bend a vast, dysfunctional bureaucracy.

Once a month, Mr. Modi holds a meeting with top bureaucrats to check why projects have not got off the ground. Since March this year, his intervention has helped revive nearly $60 billion (3.9 lakh crore) in projects, according to government data through September seen by Reuters .

Mr. Modi has won plaudits for the initiative that has chipped away at a $150 billion backlog of planned roads, ports, railways, power stations and other projects. But equally, critics say, the fact he needs to personally intervene shows the level of government inertia in Asia's third-biggest economy.

"It is a systemic problem that the prime minister needs to work on," said Arun Maira, a management consultant and member of the previous Congress government.

The initiative, launched by Mr. Modi in March and publicised on his personal web site and Twitter feed, is called pro-active governance and timely implementation, or Pragati, which means "progress".

Central and State bureaucrats are linked by video to Mr. Modi's office for the meeting, usually held on the fourth Wednesday of each month. They are typically from the finance, law, land, environment, transport and energy ministries whose clearances are needed for many projects.

The agenda is set the previous week and usually has about a dozen stalled projects, public grievances and other governance issues.

A senior official who has attended said that when a project comes up for discussion, Mr. Modi turns to the representative of the Ministry where it is being held up.

He simply asks, "Please tell me why it hasn't happened," the official said.

Several months into Pragati, the official said, a majority of the projects are cleared before they come up for discussion.

The Chief Minister of Uttar Pradesh, Akhilesh Yadav, a political rival of Mr. Modi, wrote to the PMO requesting the inclusion of a $1 billion metro rail project in the state capital at one Pragati meeting.

It got the clearances, including a pledge of funding, at the September meeting.

"This is a welcome move which would go a long way in doing away with avoidable delays," said Alok Ranjan, the state's top bureaucrat.

Systemic problem

Still, critics say that while Mr. Modi can quickly cut through red tape, his style centralises decision-making and will not be sustainable in a country as large as India.

The stock of stalled projects in the country has come down, but remains high.

In the July-September quarter, projects worth 7.6 per cent of India's GDP were stalled, down from a peak of 8.5 per cent in the January-March 2014 quarter, according to CMIE, a think-tank. The data includes private investment plans.

"Running a country is far more challenging than managing a state," said Mr. Maira, the consultant, referring to Mr. Modi's reputation as an effective administrator when he was chief minister of Gujarat from 2001 to 2014.

During those years, he used a similar initiative to get projects off the ground.

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