Building India
Accelerating Infrastructure Projects
August 2009
McKinsey & Company, Inc. 21st Floor, Express Towers Nariman Point Mumbai 400 021, India Telephone: +91 (22) 2285 5532 Fax: +91 (22) 2285 5531 4, Echelon Institutional Area Sector 32 Gurgaon 122001 Telephone: +91 (124) 661 1000 Fax: +91 (124) 661 1400
Design: New Media, Sydney Pre-production and printing: Magnum Custom Publishing, New Delhi
The information contained in this report prepared by McKinsey & Company, Inc. is furnished to the recipient for information purposes only. Each recipient should conduct its own investigation and analysis of any such information contained in this report. No recipient is entitled to rely on the work of McKinsey & Company, Inc. contained in this report for any purpose. McKinsey & Company, Inc. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any liabilities based on such information or on omissions therefrom. The recipient must not reproduce, disclose or distribute the information contained herein without the express prior written consent of McKinsey & Company, Inc.
Building India
Accelerating Infrastructure Projects
Prashant Gupta Rajat Gupta Thomas Netzer
4
Building India Accelerating Infrastructure Projects
5
Contents
Preface Executive Summary Chapter 1 Inefficiencies in Infrastructure Impede Growth Chapter 2 Major Bottlenecks Hamper Infrastructure Implementation in India Chapter 3 Way Forward for Government, Policy Makers and Nodal Agencies Chapter 4 A Call to Action for Providers Annexure GDP Impact of Inefficiencies in Infrastructure Implementation 57 47 37 25 19 7 11
6
Building India Accelerating Infrastructure Projects
7
Preface
Over the past 10 years, India has successfully executed projects such as the Golden Quadrilateral road programme and the expansion of ports in the country. Recognising that infrastructure