States Go Slow On Infra Spend
The sharp deterioration in states’ finances because of the prolonged lockdown is taking a toll on government-funded infrastructure programmes, with an increasing number of projects being put on hold for lack of funds. Preliminary data from public sources and conversations with consultants and eng
Published -
Jul 11, 2020 6:59 AM
The sharp deterioration in states’ finances because of the prolonged lockdown is taking a toll on government-funded infrastructure programmes, with an increasing number of projects being put on hold for lack of funds. Preliminary data from public sources and conversations with consultants and engineering companies show that many states have postponed tendering for new projects in the past few months, while ongoing projects are facing delays. The total number of projects, including both private and government, whose implementation has been stalled, rose 32% to 1,377 in the six months ended June 30 from 1,046 in the preceding six months, data from the Centre for Monitoring Indian Economy showed. Project monitoring organisation Projects Today’s data showed new project announcements in electricity, infrastructure, irrigation, manufacturing and mining fell 75% to 1,241 projects, valued at ?98,000 crore, from 2,500 new projects, valued at Rs 3.86 lakh crore a year ago.
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