Infrastructure

Government Halts New Bharatmala Projects Amid Delays and Cost Overruns

The Indian government has decided to suspend the initiation of new projects under the Bharatmala Pariyojana, the country’s flagship highway development program. This decision comes in the wake of substantial delays and cost overruns affecting the current projects. The Ministry of Road Transport and Highways, in its annual report for 2024-25, stated, “No further projects are now being taken up under Bharatmala Pariyojana.”

Delays and Escalating Costs

Launched in 2017, the Bharatmala Pariyojana aimed to develop 34,800 kilometers of national highways with an initial budget of ₹5.35 lakh crore. However, as of October 31, 2024, only 18,714 kilometers have been constructed, and the project has experienced significant delays. The Comptroller and Auditor General (CAG) reported that the per-kilometer cost has escalated from ₹14 crore to ₹24 crore, leading to a revised total estimate of ₹10.63 lakh crore.

Factors Contributing to Project Delays

Several challenges have impeded the timely execution of Bharatmala projects. Delays in pre-construction activities, such as land acquisition and obtaining environmental clearances, have been significant hurdles. Financial difficulties faced by contractors, force majeure events, and scarcity of construction materials have further exacerbated the situation. To address these issues, the government has implemented measures like streamlining land acquisition processes, revamping the Parivesh Portal for faster clearances, and conducting regular review meetings with stakeholders, including state governments.

Focus on Completing Existing Projects

In light of these challenges, the government is prioritizing the completion of ongoing projects before considering new ones. This approach aims to ensure that resources are effectively utilized to deliver the intended benefits of improved connectivity and reduced logistics costs. The Ministry emphasized the need to resolve existing bottlenecks to expedite project execution and avoid further delays.

Implications for India’s Infrastructure Development

The suspension of new projects under the Bharatmala Pariyojana highlights the complexities involved in large-scale infrastructure development. While the program has achieved notable progress, the encountered delays and cost escalations underscore the necessity for meticulous planning and efficient execution. The government’s current focus on completing existing projects reflects a strategic shift to consolidate efforts and resources, aiming to fulfill the program’s original objectives of enhancing national connectivity and economic growth.

As the situation develops, stakeholders and observers will closely monitor the government’s actions to address these challenges and the subsequent impact on India’s infrastructure landscape.

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