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

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Building India
Accelerating Infrastructure Projects
Prashant Gupta Rajat Gupta Thomas Netzer


Building India Accelerating Infrastructure Projects


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


Building India Accelerating Infrastructure Projects


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.


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