Monday, November 29, 1999

Plan panel to monitor progress of infra projects every quarter

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Concerned over the slow growth in the infrastructure sector, the Planning Commission today announced the annual targets for each of the ministries is the sector for 2010-11, saying they would be henceforth monitored on a quarterly basis.Unfazed by the union road transport and highways ministry's ambitious target of constructing 20 kms of highways every day, the commission today fixed its annual target at 2,500 kms indicating that it will be happy if the ministry manages to develop a little over 6 kms a day. Unveiling the targets for six infrastructure sectors for this fiscal, including roads, ports, civil aviation, power and railways, the plan panel deputy chairman Montek Singh Ahluwalia said, "We want to give a major fillip to the infrastructure sector through these targets. This has never happened before as the focus so far was on the expenditure only. Targets will be monitored on a quarterly basis and will be put on the commission's web site for all. In our judgement if there is a problem in a particular sector it will be referred to the Cabinet Committee on Infrastructure headed by the Prime Minister to have a political decision to sort it out," Ahluwalia said.Expecting to infuse accountability through a display of their performance, the deputy chairman, however, ruled out any punitive measures in case any sector underperformed saying "these targets have been fixed after consultation with the concerned ministries. By making these targets available our hope is that it is going to create the right pressure."As per the commission's estimates, the road transport ministry will require a total of Rs 35,680 crore in 2010-11. Of this, Rs 21,256 crore will have to come from the private sector. "In our estimates during the current fiscal at least 40 per cent funding should come from the private sector," he suggested.The target set for the power sector this fiscal was an additional power generation capacity of 20,359 MW. Interestingly, during 2009-10 only 9,585 MW electricity generation capacity was added against the target of 14,507 MW. The Plan panel has set a target of laying 1,019 km of new rail lines in the country this fiscal. The state-run transport monolith has added only 85 km of new lines during April-December 2009 against the full financial year target of 250 km.Ahluwalia exuded optimism that investments in the infrastructure sector during the 11th Plan period (2007-12) would be close to the target of 500 billion dollars. However, the investment target for the infrastructure sector in the 12th Plan (2012-17) is likely to be fixed at $1 trillion, with the private sector contributing about 50 per cent of the total estimated outlay. In the ports sector, the Plan panel has set a target of awarding contracts in 21 of the total 40 projects in the Public Private Partnership (PPP) mode at an estimated expenditure of Rs 13,891 crore.In case of civil aviation, the commission has also set a target of spending Rs 2,635 crore in four airports — Delhi, Mumbai, Hyderabad and Bengaluru. For other airports, the commission has set a target of percentage of completion of civil work.

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