India: Strengthening Contracting and Construction Industries for Infrastructure Development in India

Sovereign Project | 44399-012

Summary

The proposed S-PATA will identify critical issues and constraints affecting the performance of Indian contracting and construction industries, and recommend suitable measures to strengthen their performance to meet the growing demand of physical infrastructure

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Project Name Strengthening Contracting and Construction Industries for Infrastructure Development in India
Project Number 44399-012
Country India
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7751-IND: Strengthening Contracting and Construction Industries for Infrastructure Development in India
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Industry and trade - Industry and trade sector development
Gender Equity and Mainstreaming No gender elements
Description The proposed S-PATA will identify critical issues and constraints affecting the performance of Indian contracting and construction industries, and recommend suitable measures to strengthen their performance to meet the growing demand of physical infrastructure
Project Rationale and Linkage to Country/Regional Strategy

Indian construction industry provides growth impetus to other manufacturing industries like construction equipment, cement, bitumen, steel, chemicals etc., and generates substantial employment. Thus, Indian construction sector has become the basic input for socio-economic development and its multiplier effect on the economy is significant. However, Indian construction industry has not been delivering satisfactorily and facing critical issues such as inadequate delivery capacity leading to low productivity levels, time overruns, cost overruns, sub-standard quality, acute shortage of suitably trained and skilled workers, and low technological level leading to lesser profit margins and lower satisfaction levels among clients. Also, there has been inadequate participation of foreign contractors due to unattractive business environment and investment climate in the country.

Hence, the major challenge before the Indian contracting and construction industries is to improve their delivery potential commensurate with the planned development of infrastructure by addressing their capacity constraints and impediments by bringing in systemic changes. Therefore, it is crucial for the GOI to strengthen and further develop the contracting and construction industries to meet the challenges of country's socio-economic growth and physical infrastructure development.

Impact Enhanced capacity and efficiency of Indian contracting and construction industries to meet India's infrastructure needs
Project Outcome
Description of Outcome Enhanced knowledge and understanding of the Government on critical issues and constraints affecting Indian contracting and construction industries
Progress Toward Outcome TA will assist in analyzing critical issues and constraints affecting Indian contracting and construction industries. Interim discussions with the stakeholders have been scheduled. Findings would be shared with Government upon completion.
Implementation Progress
Description of Project Outputs

(i) Quantitative assessment of existing delivery capacity of Indian contractors, shortfall to meet 12th Plan target and necessary measures to bridge the capacity gap

(ii) Qualitative assessment of Indian construction sector to identify critical issues and constraints for timely project execution meeting quality standards and identification of suitable key measures to enhance their efficiency and delivery potential

(iii) Assessment of construction industries in 2 comparator countries on best practices and models adopted in their construction industries

(iv) Assessment of current skill sets of construction workers, skill gaps and suitable measures for the government to enhance their skill gaps.

Status of Implementation Progress (Outputs, Activities, and Issues)

(i) 12th Plan targets are being analyzed against existing delivery capacity of Indian contractors

(ii) Qualitative assessment of Indian construction sector is being initiated.

(ii) Comparable best practices are being explored

(iv) Analysis of current skill sets of construction workers is being initiated.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation have been done with Government and other related institutions during design stage.
During Project Implementation Stakeholder consultation workshops are scheduled during implementation.
Business Opportunities
Consulting Services Consultant has been recruited for implementing TA activities in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB.
Responsible ADB Officer Chandra Arora
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Department of Economic AffairsMinistry of Finance
North Block
New Delhi-110001, India
Timetable
Concept Clearance 28 Feb 2010
Fact Finding 28 Feb 2010 to 13 Mar 2010
MRM -
Approval 13 Dec 2010
Last Review Mission -
Last PDS Update 27 May 2011

TA 7751-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2010 - 13 Dec 2010 31 Dec 2011 31 Jul 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 0.00 75,000.00 0.00 0.00 0.00 300,000.00 13 Dec 2010 40,618.87

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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