Infra development key to India becoming global player: Govt

NEW DELHI: The government said proper execution of infrastructure projects was key to accelerate economic growth as the country proposes to spend Rs 40 lakh crore in the sector during the 12th Five Year Plan.

"India is expected to be one of the global economic leaders but for that to happen, the key driver would be infrastructure development.

"Therefore, successful project delivery of such projects become most important in the current scenario," Pankaj Jain, additional secretary in the Ministry of Statistics and Programme Implementation told a SCOPE function here.

Standing Conference of Public Enterprises (SCOPE) is an apex professional organisation representing the Central Government Public Enterprises.

Referring to the preliminary assessment made by the Planning Commission, he said, investment of the order of about Rs 40 lakh crore would be required during the 12th Five Year Plan as against about Rs 20 lakh crore funding in the 11th Five Year Plan.

President Pratibha Patil had yesterday said the private sector would have to join the government in the mammoth funding of $ one trillion (over Rs 40 lakh crore) for infrastructure development in the 12th Plan staring next fiscal.

The PMEAC has projected economic growth at 8.6 per cent for 2010-11 and 9 per cent for the next fiscal.

SCOPE Director General U D Choubey said PSUs are facing a lot of complications in project management such as land acquisition, environment clearance, basic design and construction.

If not tackled on time, this would result in delays of the projects.

Meanwhile, Jain said due to various initiatives of the government, project duration and cost overrun have improved.

Projects Management of Institute Country Director Raj Kalady said, there is an increasing need for transparency as the globalisation continues.

"The project managers have to be more agile and more innovative according to the market circumstances. Also there is a need for standardisation across the organisation for project management and the project matrix to be redefined", he said.