Making investment efficient

Pushing capital expenditure will not be enough

Prime Minister Narendra Modi has reportedly asked the cabinet secretary to prepare a list of infrastructure projects that have been delayed because of court or green tribunal orders. This should help the government take appropriate steps to address the concerns raised by courts and bring such projects back on track. Delays in completing projects escalate costs and reduce the efficiency of capital employed. In a situation where the economy is recovering from a pandemic-induced contraction, it is important for the government to not only increase capital expenditure, but also invest efficiently. However, the latest data on government finances shows that