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Critical Analysis of India's Infrastructure Projects under Modi Government

Jun 28, 2024

Critical Analysis of India's Infrastructure Projects under Modi Government

Introduction

  • Water leakage from Ram Mandir raises concerns
    • Public reaction: people seeing it as a sign of divine anger
    • Issues with hasty construction attributed to electoral motivations
  • Similar issues across other states and infrastructure projects

Specific Examples of Infrastructure Failures

  • Ram Mandir: Leakage after first rain
  • Atal Setu: Cracks in approach road
  • Mumbai Coastal Tunnel: Poor seepage condition
  • Pragati Maidan Tunnel: Required major repairs within 2 years
  • Uttarakhand: Various failure points like Joshimath, Silkyara tunnel
  • Bihar: Multiple under-construction bridges collapsed

Broader Concerns

Government Priorities and Investments

  • Heavy investment in infrastructure: 11 lakh crore rupees in interim budget
  • BJP's manifesto includes significant infrastructure promises
  • Concerns over financial sources: Potential funding diversion from health, education, R&D
  • Hidden Costs: Quality issues and long-term financial sustainability

Quality and Implementation Issues

  • Highways: Substantial investment, but quality and loan repayment concerns
    • 55,000 km of highways claimed, but there are problems with real length and quality
    • Quality issues led to 5000 deaths due to potholes between 2018-2020
    • NHAI Debt: Facing liquidity crunch; will take 25 years to repay debt
  • Railways: Promised electrification and freight corridors not realized
    • Safety concerns, high operating ratios, ticket prices up, concessions removed
    • Flashy projects: Vande Bharat trains and world's highest railway bridge on Chenab
    • Ground reality: Accidents, poor maintenance, and safety issues
    • Claims of 'conspiracies' to deflect criticism
  • Airports and Ports: Improvement in figures but major control by Adani group
    • Udan scheme: Only 7% of routes sustainable long-term
    • Huge control of cargo ports and airports by Adani

Broader Economic Impact

  • Education: Only 0.44-0.61% of GDP spent on education versus the promised 6%
    • Results in poorly educated, less questioning citizenship
  • Healthcare: Only 1.2% of GDP spent, lowest in G20 nations
    • Lancet report findings and government denial
    • Talk of 16 AIIMS, but reality of functional status questioned
  • R&D: Lower investment than other nations, resulting in inability to pioneer new technologies
    • Aim to be the world's back office, but AI could displace jobs due to lack of innovation

Financial Health

  • Public Debt: 80-100% of GDP (IMF projection)
    • Toll payments serving to pay off debt rather than add value
    • NHAI's tight financial state mirrors overall governmental challenges

Potential Solutions

  1. Utilize Existing Infrastructure Effectively: Attract FDI, build factories, generate domestic investment
  2. Shift Focus: Beyond politics, move towards comprehensive development including education, healthcare, and R&D
  3. Long-term Outlook: Develop sustainable and high-quality infrastructure for continuous economic improvement

Conclusion

  • Recognize achievements in infrastructure development but address lingering quality and financial concerns
  • Diversification of government focus to holistic national development
  • Discussion on priorities for the government's next term is vital

Q&A: What should the government focus on in the next 5 years?

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