Tuesday, July 24, 2012

Why Gujarat's Urban Infrastructure build is as Real as it Appears - INDIASPENDS.COM

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From: sanjeev nayyar

Most visitors to Gujarat and particularly cities like Ahmedabad come back impressed with the sheer pace of change on-ground, particularly in infrastructure. The question many ask is: how much of this is real and how much apparent?

 

IndiaSpend’s Prachi Salve uses the Rs 66,000 crore Jawaharlal Nehru National Urban Renewal Mission (JNNURM) spend & execution report as a primary proxy to assess Gujarat’s infrastructure build; and finds that Gujarat is clearly setting perhaps the fastest pace in urban infrastructure build, particularly compared to many other states and cities/towns.

 

By way of background, the JNNURM was started 7 years ago in December 2005 and was conceptualised as a major central Governmental initiative to improve urban infrastructure. Gujarat, after Maharashtra (see earlier report), has the second highest number of sanctioned projects at 72 worth Rs 5,604 crore. Of these, 38 have been completed. Incidentally, most of the completed projects were approved in March-April 2006 and have taken roughly 18 – 24 months for completion.

 

Interestingly, the sector wise break-up of projects in Gujarat does not follow the national pattern. Nationally, the highest numbers of projects are related to water supply followed by sewerage with 152 and 139 respectively (see Table at end). There could be many reasons for this, either that these needs and thus projects would have embarked upon earlier and concluded or are pending.

 

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