Infrastructure Development Current Affairs - 2020

MOSPI report: More than 403 Infrastructure Projects hit

The Ministry of Statistics and Programme Implementation recently released a report on infrastructure projects in the country. According to the report, more than 403 infrastructure projects each of worth Rs 150 crores have been hit badly.

Highlights

The Ministry of Statistics and Programme Implementation monitors infrastructure projects that are worth more than Rs 150 crores and above. Of the 1,686 projects being monitored 403 reported cost overrun and 530 time escalation.

What is the issue?

Around 19.60% of the original cost of the infrastructure projects have been lost. The total original cost of implementation of these 1,686 projects were Rs 20,66,771 crores. Their anticipated completion cost was Rs 24,71,947 crores. This reflects the overall cost over run of Rs 4,05,175 crores, which is 19.6% of the original cost.

Reasons for the over run

The following are the reasons for the projects to over run

  • Delay in Land Acquisition. This includes forest or environmental clearances and lack of infrastructure support and linkages
  • Project Financing issues
  • Delay in tendering
  • No reporting of revised cost estimates. This led to under reporting
  • Law and order problems.

Steps taken by the GoI

The GoI is preparing National Infrastructure Pipeline to improve project preparation, revised model concession agreement and project development cells in ministries.

Suggestions to improve the scenario

  • The processes and capabilities shall be improved by pre-planning and site investigation, strengthening contract management, reforming procurement, collaborative planning, etc.
  • To strengthen people management processes
  • To deepen stakeholder management for land acquisition

Rationalization of Coal Linkage Scheme

The Government of India is to rationalize the coal linkages in the country. This is to be done in order to reduce the load on transportation infrastructure and also to ease evacuation constraints.

Highlights

The Government of India has rationalized the coal linkages in order to reduce the distances of coal transportation. Unlike the previous rationalizations, the current exercise involves power and non-regulated sector as well. The move is aimed to reduce the load on transportation infrastructure and ease evacuation constraints.

The scheme will transfer coal in terms of gross Calorific Value and is to be implemented only for non-coking coal.

What is Rationalization of Coal Linkages?

The Rationalization of coal linkages is the transfer of coal supply source of a plant from a far mine to a nearer one.

Background

The rigidity in coal supply in India resulted in ferrying coal from long distances. This increased costs and burden on Indian Railways. The Coal Linkage Rationalization scheme was launched to untangle the situation.