After a lull, infrastructure projects are once again up with a roar. This is because the government allocated Rs 12,887 crore for urban infrastructure under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in the Union Budget 2009-10, up by 87% over that of last year’s budget.

According to Saugata Roy, Union Minister of State for Urban Development, although the allocation for the JNNURM scheme was stepped up, it is fast getting depleted, prompting the government to seek US$50-million loan from the World Bank to fund all proposed projects till 2012. Mr Roy further added that this would include the proposed US$5-billion loan for the urban sector.

“There is no doubt that these efforts by the government will definitely help in the infrastructure development in the country,” says Kadeer Ahmad, Proprietor of Zed Impex, a mid-sized infrastructure firm in Moradabad, UP.



Government calls for faster project implementation

Concerned by the slow pace of project implementation under the JNNURM scheme, the government warned of a tough stance on release of further installments to lagging states such as Delhi and West Bengal.

Out of 41 schemes approved in West Bengal, work on 15 projects has not been initiated. The state received only 7% of the total fund allotted for the JNNURM scheme, while Gujarat received 10% and Maharashtra 28%.

This demands a much more focused approach by the trailing state governments in order to increase their contribution in the scheme. Besides, the states should also approach the capital market and leverage funds under the mission from financial institutions, which in turn will drive the construction process.

“With the economy gathering steam, the state governments need to identify all those infrastructure projects that demand faster implementation. This will help them to go up in the ranks of the national development index,” opines V.K. Agarwal, Director of Agarwal Industries, a mid-sized infrastructure firm in New Delhi.

Going forward, stability in the market, focused government approach and continued investor interest will take the infrastructure sector in India to a boom in the road ahead.

Jeeta Bandopadhyay