Prime Minister Manmohan Singh has asked for fast-tracking major railway, road and port projects whose slow development could become the biggest ‘game stopper’ for India’s economic growth.
The prime minister held a series of meetings recently and reviewed the performance of the transport sector, after which decisions were taken to go full throttle with the Mumbai elevated rail corridor, the dedicated freight corridor, and two new ports in Andhra Pradesh and West Bengal.
The poor and rickety state of infrastructure in India has been a drag on the country’s economic growth. According to the government’s own assessment, India needs infrastructure spending of close to $1.5 trillion to grow at 10 per cent every year.
Economists refer to the slow pace of reforms in the urban transportation sector in India, as compared to sectors like telecom and services. Also, delayed approvals, cost-overruns and poor planning and execution have plagued projects for years. According to one estimate, up to 70 per cent of projects in India seek extensions.
An official release said that as per the prime minister’s direction, the State Support Agreement for the Mumbai elevated rail corridor should be signed with the Maharashtra government in the next 15 days and bids for the project will be invited before the Rail Budget in 2013.
On setting up a Rail Tariff Authority, a cabinet note will be brought latest by Jan 15, 2013.
Also, the bids for the Madhepura/Marhowra PPP Loco Factories will be called by 30 December and the project will be awarded before the presentation of the Railway Budget.
The prime minister held a series of meetings recently and reviewed the performance of the transport sector, after which decisions were taken to go full throttle with the Mumbai elevated rail corridor, the dedicated freight corridor, and two new ports in Andhra Pradesh and West Bengal.
The poor and rickety state of infrastructure in India has been a drag on the country’s economic growth. According to the government’s own assessment, India needs infrastructure spending of close to $1.5 trillion to grow at 10 per cent every year.
Economists refer to the slow pace of reforms in the urban transportation sector in India, as compared to sectors like telecom and services. Also, delayed approvals, cost-overruns and poor planning and execution have plagued projects for years. According to one estimate, up to 70 per cent of projects in India seek extensions.
An official release said that as per the prime minister’s direction, the State Support Agreement for the Mumbai elevated rail corridor should be signed with the Maharashtra government in the next 15 days and bids for the project will be invited before the Rail Budget in 2013.
On setting up a Rail Tariff Authority, a cabinet note will be brought latest by Jan 15, 2013.
Also, the bids for the Madhepura/Marhowra PPP Loco Factories will be called by 30 December and the project will be awarded before the presentation of the Railway Budget.