Question

What are Challenges faced by India in economy infrastructure?

Answer 1

Here is a list of some of the major challenges which need the immediate attention of all the players:

Planning oriented issues:

There is a significant shortfall in planned investments.

Several of the announced projects are yet to be completed.

Delay in Implementation and execution.

Not able to get Land-acquisition and environmental clearances.

Lack of co-ordination between various Government agencies

Improper and Inappropriate structuring of the projects, with no demarcation of risks between Government and private sector

Absence of a proper dispute resolution mechanism between private players and government agencies

Developing a technically sound and Well-Equipped Regulator

Financial oriented issues:

There are time and cost overruns.

Burden on developers, because of execution delay,

Cautious approach by Banks in lending to infrastructure sectors,

There must be an overhaul of the current way of doing business in this sphere and a better practical and problem solving approach.

Removing the difficulties in raising funds, as banks have restricted exposure to the sector and funds from abroad lack a suitable avenue to invest

Assessing the projects for Technical and Financial Viability