More than 80 per cent of issues pertained to the state governments
ROADS & HIGHWAYS

More than 80 per cent of issues pertained to the state governments

Arun Goyal, Former Secretary to Government of India and Ex-Head of the Project Monitoring Group (PMG), had a long stint in the Group from October 2015 to February 2019.The group was tasked with fast-tracking, setting up and implementing large public, private and public-private partnership (PPP) projects by resolving a variety of issues. The group mainly dealt with projects with anticipated investment above Rs 10 billion (Rs 5 billion in case of projects with FDI). “The issues uploaded by project proponents on PMG’s portal were resolved through regular review,” says Goyal. “The review was carried through inter-ministerial subgroups and state-level meetings with respective chief secretaries or senior level-officers at state capitals or through video conference.Project proponents were also invited for these review meetings. During my three-and-a-half-year stint at PMG, more than 3,400 issues pertaining to over 720 projects were resolved under the mechanism.” Goyal shares more on solutions to avoid time and cost overruns, in conversation with SERAPHINA D’SOUZA...

  • “I observed that issues leading to time or cost overruns pertained to both the Centre and state governments. Central Government issues included environment, forest and wildlife clearances; eco-sensitive zone clearances; sanction of debt funds and working capital by banks or financial institutions; approval for private railways siding construction; and permission for road crossing of pipelines, transmission lines, railway lines and shifting of utilities. State government issues included land acquisition issues such as government notifications or disbursement of compensation and mutation; removalof encroachments and handing over possession of land; formulation of relief and rehabilitation plans; issue of certificate under the Forest Rights Act; tree-cutting permissions; grant of right of way (RoW) permissions; consent to establish and operate from the State Pollution Control Board; and transfer of government land.
  • I found that most of the issues on our portal pertained to the Central Government’s linear projects such as highways and rail lines, transmission lines and pipelines. Very few issues pertaining to the Central Government were pending on PMG’s portal at a particular time. In the Central Government, rigorous and digital monitoring mechanisms ensured issues were addressed quickly. More than 80 per cent of issues pertained to the state governments. As projects are executed on ground in different states, response varied from state to state. Some states were also slow in responding to issues owing to political reasons.
  • I have observed that once there is cost and time overrun in a public project, project execution tends to get further delayed. In a delayed project, decision-making involves deviations from the terms and conditions of the tender and, at times, the financial implications may be huge. In such circumstances, public-sector executives and civil servants tend be cautious and sometimes the procedures involved are also lengthy.
  • There is another important difference in project execution between the private sector and public sector. A public-sector employee has to follow all procedures of tendering, etc, without consideration of the time and amount already invested into the project. On the other hand, a private-sector executive is able to factor in opportunity and the cost involved because of the amount and time already invested and need not follow all procedures.
  • Overall, I feel there has to be a sense of urgency amongstate-level officials, particularly at the district level, to proactively resolve and expedite local-level issues. This is particularly important for linear projects because, sometimes, a long, linear project with huge investment may get stalled because of issues involved in a small patch of land.”
  • Arun Goyal, Former Secretary to Government of India and Ex-Head of the Project Monitoring Group (PMG), had a long stint in the Group from October 2015 to February 2019.The group was tasked with fast-tracking, setting up and implementing large public, private and public-private partnership (PPP) projects by resolving a variety of issues. The group mainly dealt with projects with anticipated investment above Rs 10 billion (Rs 5 billion in case of projects with FDI). “The issues uploaded by project proponents on PMG’s portal were resolved through regular review,” says Goyal. “The review was carried through inter-ministerial subgroups and state-level meetings with respective chief secretaries or senior level-officers at state capitals or through video conference.Project proponents were also invited for these review meetings. During my three-and-a-half-year stint at PMG, more than 3,400 issues pertaining to over 720 projects were resolved under the mechanism.” Goyal shares more on solutions to avoid time and cost overruns, in conversation with SERAPHINA D’SOUZA... “I observed that issues leading to time or cost overruns pertained to both the Centre and state governments. Central Government issues included environment, forest and wildlife clearances; eco-sensitive zone clearances; sanction of debt funds and working capital by banks or financial institutions; approval for private railways siding construction; and permission for road crossing of pipelines, transmission lines, railway lines and shifting of utilities. State government issues included land acquisition issues such as government notifications or disbursement of compensation and mutation; removalof encroachments and handing over possession of land; formulation of relief and rehabilitation plans; issue of certificate under the Forest Rights Act; tree-cutting permissions; grant of right of way (RoW) permissions; consent to establish and operate from the State Pollution Control Board; and transfer of government land. I found that most of the issues on our portal pertained to the Central Government’s linear projects such as highways and rail lines, transmission lines and pipelines. Very few issues pertaining to the Central Government were pending on PMG’s portal at a particular time. In the Central Government, rigorous and digital monitoring mechanisms ensured issues were addressed quickly. More than 80 per cent of issues pertained to the state governments. As projects are executed on ground in different states, response varied from state to state. Some states were also slow in responding to issues owing to political reasons. I have observed that once there is cost and time overrun in a public project, project execution tends to get further delayed. In a delayed project, decision-making involves deviations from the terms and conditions of the tender and, at times, the financial implications may be huge. In such circumstances, public-sector executives and civil servants tend be cautious and sometimes the procedures involved are also lengthy. There is another important difference in project execution between the private sector and public sector. A public-sector employee has to follow all procedures of tendering, etc, without consideration of the time and amount already invested into the project. On the other hand, a private-sector executive is able to factor in opportunity and the cost involved because of the amount and time already invested and need not follow all procedures. Overall, I feel there has to be a sense of urgency amongstate-level officials, particularly at the district level, to proactively resolve and expedite local-level issues. This is particularly important for linear projects because, sometimes, a long, linear project with huge investment may get stalled because of issues involved in a small patch of land.”

    Next Story
    Products

    Koemmerling opens Navi Mumbai experience centre

    Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

    Next Story
    Products

    India's waterproofing market nears Rs 150 bn milestone

    India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

    Next Story
    Real Estate

    Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

    Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

    Advertisement

    Subscribe to Our Newsletter

    Get daily newsletters around different themes from Construction world.

    STAY CONNECTED

    Advertisement

    Advertisement

    Advertisement