21 FEB,2021 | MEDC
Among the key measures announced in Budget 2021 is a renewed thrust on infrastructure development. In an emerging economy like India, the need for infrastructure investment is large, urgent and ever increasing. No structural reform in India can take place without massive infrastructural development. Keeping in mind the special requirements of financing infrastructure assets, the Budget has announced the setting up of a development finance institution (DFI), with a capitalization of Rs. 20,000 crore. A clear focus on project management is essential for the success of the DFI, since most of India’s investment projects are notorious for their time and cost overruns … a phenomenon not limited only to the Covid period. A robust system for project implementation is imperative for efficient infrastructure development in India. The budget’s emphasis on infrastructure is praiseworthy. But the efficiency of the entire implementation mechanism needs to be enhanced if economic growth in the post-Covid period is to materialize.
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