CII wants more sectoral indices
More sector specific indices should be developed for better evaluation of the economy, a top Planning Commission official said Wednesday.
By PTI |
NEW DELHI: More sector specific indices should be developed for better evaluation of the economy, a top Planning Commission official said Wednesday.
"We need to develop more sectoral indices including that for housing stocks for better appraisal of the economy," Member Secretary of Planning Commission R R Shah said at Construction Summit 2005, organised by CII.
Such indices would help planners to better evaluate the economy for planning process, he added.
Shah also supported the idea to have a separate index for housing sector.
"Such housing stock index exists in the US and it give a better picture of future consumption trend," he said.
Developing a housing index would also help construction industry, he added.
The secretary also emphasised on target-linked project evaluation for avoiding time and cost overruns.
Providing budgetary support for infrastructure projects has become almost a thing of the past, he said adding public private partnership in project execution has become the order of the day.
In order to ensure better utilisation of resources, he said the economy is shifting to Built Own and Operate (BOOT) model instead of Engineering Procurement and Contract (EPC) model to avoid time and cost overruns.
CII Infrastructure Committee chairman Vinayak Chatterjee urged for developing a gross capital formation index for the whole infrastructure sector.
"We do not have any index that tells how much money we are putting to the construction sector and also to what extent this sector contributes to the Gross Capital Formation of the economy," he said.
Conservative estimates put the GCF Index at around three per cent of GDP as against 7-8 per cent in developed South Asian economies, he added.
Indian construction industry is growing at five per cent annual rate, said Amul Gogna, Executive Director of ICRA.
He said nearly 50 per cent of country's capital formation is being generated by construction and related activities.
Dwelling on the problems of the construction industry, he said "nearly three-fourth of the problem is due to incorrect execution and design".
Construction sector is the second employer after the farm sector and employs about 18 million people directly and 14 million indirectly.
"Benchmarking quality and efficiency of execution is the need of the hour," Gogna said.
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