India’s spending on infrastructure will go up to 37 lakh crore rupees by 2030, prompted at least in part by the Covid pandemic. One of the significant factors, if you take present conditions, is the delay in completion of infra projects (including housing projects) and cost overruns witnessed due to the pandemic, according to a new report.
The costing overruns assume critical significance as most global economies pin their hopes of a growth revival on increased infrastructure spending. With the world seeing the biggest GDP growth contraction since the second world war, how and ‘how much’ you spend, and on what, is of utmost importance in a cash-strapped scenario.
As per the report by the international construction and consultancy company Mace titled ‘A Blueprint for Modern Infrastructure Delivery’, as much as 80 per cent of big infrastructure projects are delivered late and goes over-budget, besides under-delivering on benefits. ‘These challenges must be addressed so as not to undermine the global infrastructure-led economic recovery; evidence of change through successful delivery is essential to boosting public confidence in the months ahead,’ the report argues.