Building India-Infrastructure Practise

Topics: Project management, United States dollar, Construction Pages: 36 (9668 words) Published: September 10, 2013
Infrastructure Practice

Building India
Accelerating Infrastructure Projects

August 2009

McKinsey & Company, Inc. 21st Floor, Express Towers Nariman Point Mumbai 400 021, India Telephone: +91 (22) 2285 5532 Fax: +91 (22) 2285 5531 4, Echelon Institutional Area Sector 32 Gurgaon 122001 Telephone: +91 (124) 661 1000 Fax: +91 (124) 661 1400

Design: New Media, Sydney Pre-production and printing: Magnum Custom Publishing, New Delhi

The information contained in this report prepared by McKinsey & Company, Inc. is furnished to the recipient for information purposes only. Each recipient should conduct its own investigation and analysis of any such information contained in this report. No recipient is entitled to rely on the work of McKinsey & Company, Inc. contained in this report for any purpose. McKinsey & Company, Inc. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any liabilities based on such information or on omissions therefrom. The recipient must not reproduce, disclose or distribute the information contained herein without the express prior written consent of McKinsey & Company, Inc.

Building India
Accelerating Infrastructure Projects
Prashant Gupta Rajat Gupta Thomas Netzer

4

Building India Accelerating Infrastructure Projects

5

Contents
Preface Executive Summary Chapter 1 Inefficiencies in Infrastructure Impede Growth Chapter 2 Major Bottlenecks Hamper Infrastructure Implementation in India Chapter 3 Way Forward for Government, Policy Makers and Nodal Agencies Chapter 4 A Call to Action for Providers Annexure GDP Impact of Inefficiencies in Infrastructure Implementation 57 47 37 25 19 7 11

6

Building India Accelerating Infrastructure Projects

7

Preface
Over the past 10 years, India has successfully executed projects such as the Golden Quadrilateral road programme and the expansion of ports in the country. Recognising that infrastructure is key to enable economic growth, the government has also committed massive investments of close to USD 500 billion in the infrastructure sector in the Eleventh Plan period (2008 to 2012). This plan follows several progressive initiatives taken in recent years, including the Electricity Act 2003, the National Highways Development Project (NHDP), the National Maritime Development Programme (NMDP), and Dedicated Freight Corridors (DFCs). However, much more needs to be done to accelerate the implementation of infrastructure in India.

India’s rapid economic growth over the last decade has placed tremendous stress on its limited infrastructure. The sector has received growing attention from the government and the public, bringing the shortage of infrastructure to the fore. Fulfilling India’s aggressive economic growth aspirations would be seriously challenged due to this shortage. The country needs to urgently accelerate the conceptualisation and implementation of all its infrastructure development to enable planned growth.

Trends during the first two years of the Eleventh Plan have raised doubts over whether India will be able to realise its ambitious infrastructure plans. Issues that plague the sector include a shortfall in awarding projects as per plan, inefficient project execution and constrained capital flows to the sector.

McKinsey & Company has conducted proprietary research in the areas of infrastructure financing, infrastructure implementation, logistics strategy and power strategy. This report is a part of our four-part series, Building India, a comprehensive perspective on infrastructure development in the country. It provides a perspective on the potential GDP loss due to the inefficiencies in infrastructure implementation and the challenges that drive these inefficiencies, and proposes a set of measures that the various stakeholders can take.

8

This study has benefitted enormously from the valuable inputs provided by business leaders,...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • India Infrastructure & Economy Essay
  • Building a Market Economy in India Essay
  • India Essay
  • India Essay
  • Infrastructure Essay
  • Ppp Infrastructure Financing Trends in India Research Paper
  • Liberalisation in India Essay
  • Recession in India Research Paper

Become a StudyMode Member

Sign Up - It's Free