Infra Projects Need Community Connect : Daily Current Affairs

Relevance: GS-3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from

Key Phrases: Community Connect, Evidence-based Approach, Last-Mile Challenges, Non-Accountable Approaches, Wasteful Expenditure, Missed Timelines, Failed Outcomes, Uncertain Financial Management

Context:

  • Many large infrastructure projects are facing the challenge of no or low public information and trust.
  • If communities are taken into confidence and their stake in infrastructure development is considered, the likely gains will accrue to them, and the deferring of timelines will reduce.

Key Highlights:

  • A large nation like India with its diversities, needs a deeper understanding of the local context.
  • Land acquisition, coordination among various Departments, financial and project management systems, involvement and activeness of State and local governments, alignment of roads, agitation of local communities often become a cause for delays.
  • The outcomes would be different if the community connect, evidence-based approach, application of technology, and a deeper understanding of the last-mile challenges are taken into consideration while making public policies.
  • The above four defining success criteria are good not only for pro-poor public welfare but it is imperative even for infrastructure projects.

Examples of failures or delays in the infrastructure projects which offer lessons:

  1. Telecom Sector:
    • Efforts in the telecom sector through BSNL and the efforts to deliver the optic fibre service to every panchayat were not matched by local level public information.
    • The public was largely unaware of what outcomes they could expect, the timeline of execution of projects in the panchayats, and the authorities responsible for maintenance and providing last mile connectivity.
    • Such non-accountable approaches lead to wasteful expenditure with missed timelines and failed outcomes.
    • These lessons ought to be learnt in further engagements.
  2. Indian Railways:
    • The Indian Railways is still implementing the decade old projects, even though the vendors are from the top construction companies.
    • These projects also suffer from land acquisition difficulties besides uncertain financial management.
  3. Power Sector:
    • The power distribution companies (Discoms) and their inability to improve performance in spite of multiple efforts at new innovative financing support, points to the fundamental need for partnerships with local governments and communities and to make them partners in the improved realisation of dues for uninterrupted power supply.
    • The failures of UDAY to reach benchmarks must be fully analysed and a community connects approach needs to be attempted in future engagements.
    • Nagaland’s Village Development Board is a shining example of this.
  4. NHAI Projects:
    • The National Highways Authority of India (NHAI) projects have done very well in improving connectivity and logistics across the country.
    • The NHAI has been a new opportunity for growth and new investments.
    • However, challenges faced by the projects include:
      • litigation in land acquisition
      • creation of facilities for villagers' movements across highways like underpasses
      • toll free movement rights
      • drainage alongside highways
    • These challenges can be dealt with better connect and coordination which would improve the highways quality, cost, and usage parameters and the convenience of adjoining villages.
    • This may even help in reducing the cost of land acquisition which is today a major challenge in NHAI, accounting for 30-40 percent of the cost of greenfield projects.

Ujjwal DISCOM Assurance Yojana (UDAY) scheme:

  • The scheme was to introduced to improve the “Financial turnaround of power distributing companies (DISCOM)”.
  • The DISCOMS which are responsible for distributing power to the customers were undergoing some financial crunch due to certain loopholes in the distribution pattern of power companies.
  • Its objectives include:
    • Financial Turnaround
    • Operational improvement
    • Reduction of cost of generation of power
    • Development of Renewable Energy
    • Energy efficiency & conservation
  • It allows state governments, which own the DISCOMs, to take over 75 percent of their debt as of September 30, 2015, and pay back lenders by selling bonds.
  • States to issue non-SLR including SDL bonds, to take over the debt and transfer the proceeds to DISCOMs in a mix of a grant, loan, equity.
  • Borrowing is not to be included for calculating fiscal deficit of the State.
  • DISCOMs are expected to issue bonds for the remaining 25 percent of their debt.
  • The scheme is optional for the states to join.
  • The scheme is applicable to only state-owned DISCOMS.

Challenges faced by the Scheme:

  1. High Aggregate Technical & Commercial (AT&C or distribution) losses.
  2. Inadequate power subsidy given by state governments to discoms.
  3. Increasing gap between average cost of supply and average revenue realised.
  4. Poor state finances on account of the increased cost of debt servicing for the UDAY states.

Examples of successes in infrastructure projects which offer lessons:

  1. Pradhan Mantri Gram Sadak Yojana (PMGSY) program:
    • In the PMGSY program for rural roads, the clear policy decision was:
      • no payment was to be made for land acquisition
      • if some private land comes in the alignment of the village connectivity, the person will have to willingly transfer the land for the road.
    • A lot of explaining, interactive discussions, and deep analysis of the projects are mandatory requirements in PMGSY project design, creating a stake for the local community.
    • Critical assessment of draft detailed project reports with GIS mapping by technical institutions like IITs and NITs across all States and projects ensures quality at reasonable costs.
    • Encouragement of local materials and new technologies including waste plastic usage in road construction is part of the approval system leading to the World Bank studies projecting PMGSY as an outstanding project globally.
  2. The Gram Swaraj Abhiyan:
    • The Gram Swaraj Abhiyan is an approach to deliver seven public services (electricity, LPG, bank account, LED bulbs, immunisation, life and accident insurance) to 63,974 villages with a large population of deprived communities.
    • It is a development paradigm that is as relevant to any other sector, whether public or private.
    • It is a classic example of a whole of government, the whole of society, community-led, technology-based, and human resource-based effective monitoring for time-bound results.
    • Every State/UT extended full support with the cooperation of communities including the women’s collectives under the Livelihood Mission.
    • Monthly Ujjwala gas connections moved up from 10 lakh to over 50 lakh during the campaign.
    • Electricity connections similarly moved up from 10 lakh to 19 lakh per month.

Case studies:

  1. Tata Steel’s efforts in Jamshedpur and its adjoining areas secured a labour militancy-free workforce for the company leading to progress in steel-making.
  2. There are reports on the benevolence of the business community from Gujarat, giving big gifts to their workers, a legacy of the cooperative movement in that State.

Way Forward:

  1. Implementation Timeline:
    • This can make manifold improvements in infrastructure projects.
  2. Strengthening of Local Bodies:
    • The Eleventh Schedule of the Constitution provides for 29 sectors for oversight of the gram panchayats and the Twelfth Schedule provides for 18 sectors for the supervision by urban local bodies.
    • If these institutions are strengthened with a conscious effort to provide space for community, cooperative and women’s organisations in the partnership, all sectors will gain.
  3. Well articulated policy for Employment:
    • Opportunities for employment in manufacturing and services need a well-articulated policy to develop the hinterland.
    • Indirect employment and opportunities should be a planned activity with the active collaboration of the community and its re-skilling.

Conclusion:

  • Local communities are rational entities and relationships of trust are needed with them.
  • However, the local communities often do not know the purpose and how lives will change and incomes will rise due to better connectivity.
  • Making employees and local communities fully integral to the development process through an organic community connect is the only way forward for a more shared growth.

Source: The Hindu BL

Mains Question:

Q. Making employees and local communities fully integral to the development process through an organic community connect is the only way forward for a more shared growth. Critically evaluate in context of the numerous challenges being faced by the large infrastructure projects.