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Operations | "Indian Infrastructure Development: Operations Making the Vision Come True"

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Indian Infrastructure Development
Operations Making the Vision Come True

- by N. V. Chakravarthy *

Previous

Page - 8

  • Coherence and integration is missing in Indian infrastructure development.

  • Indian engineers show great interest in negotiations of project equipment, but they tend to indicate less concern for project implementation

  • Lot of focus on selection and finalization of process, but fail to implement the plans. The reasons could be lot of time consumed for approvals, buying of equipment, manpower leveling, etc.

  • Failing to integrate this technology into the developmental projects that is still a dream come true. This is due to constraints like, improper network connectivity, power, and the mindset of the people.

  • Handling projects independently one after the other but not simultaneously, development and integration of all the core sectors like, transport, power, telecommunications, construction and education is missing hence the result, mishandled or incomplete projects.

  • Most of the projects are delayed behind the scheduled time resulting in high cost overruns (delay in decision making).

  • Infrastructure development is tardy, as we restrict ourselves to theory rather than practice. We are slowly utilizing technology, public private partnership models, and attracting lot of investment both from domestic and foreign.

  • Lot of the infrastructure investment in China has been pre-planned and not market-led. Because of the loose (and in my view, imprudent) monetary and foreign exchange policy of the Chinese government, the inflation-adjusted cost of capital for infrastructure is virtually zero. This allows them to build pretty much anything they want, anywhere they want. In some places (like Shanghai, or along the coast), the demand develops once the projects come on-stream. Other more-poorly thought out projects, presumably, are not so lucky.

    "Need - Sufficient Demand has to be there for Infrastructural Development that eases attracting investment and efficient planning and execution."

  • Next


    * Contributed by: -
    N. V. Chakravarthy,
    MBA, II Year,
    School of Management Studies,
    University of Hyderabad, Hyderabad.


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