Kolkata: Numbers lie at the heart of budgets as they deal with allocation. Unfortunately, numbers don’t signal quality of delivery in projects where the allocations
are made. Consultancy MNC PWC has mentioned in a pre-Budget note that a focus on quality can maximise the benefits that projects can deliver. While recommending continuation of capital expenditure, which was about Rs 2.8 lakh crore in FY26, PWC said the govt has to focus on quality of work too.
Primacy of quality
“Bring in a focus on quality and not just funding projects by enabling investments in industry-wide capability building such as training programmes linked to highway projects; fiscal incentives for mechanisation and modern construction technologies (equipment pooling and leasing organisation?); and structured skilling initiatives for O&M,” PWC said in its note. It is quite obvious that enhanced focus on quality in physical infrastructure projects also gradually brings down the wear and tear of the infrastructure, which, in turn, can reduce maintenance expenditure both in terms of funds, manpower and disruption to normal service rendered by the infra projects.
Away from the ‘build–neglect–rebuild’ mode
PWC has referred to the usual attitude to infra projects as ‘build–neglect–rebuild’, which means the usual course is to first build a project and then neglect it which necessitates rebuilding of the project. PWC wants a focus on operating expenditure to put an end to this mode. “Bring in a focus on opex (to avoid ‘build–neglect–rebuild’ challenge) by emphasising creation of a more efficient system that consciously tilts towards higher lifecycle spending, with a clear target to increase the share of opex to about 20–25% of total highway outlay by 2030 by (i) ring-fencing maintenance allocations for critical corridors, (ii) expanding performance-based O&M contracts, and (iii) creating incentives for states and concessionaires to invest in long-term maintenance rather than short-term fixes,” it has mentioned in its note.
Bharatmala projects should be completed faster
The Bharatmala project was launched in 2017. It envisaged an umbrella scheme by the Ministry of Road Transport and Highways to develop 34,800 km of highways to facilitate freight and passenger movement across the country. It involves building economic corridors, border roads and coastal connectivity. PWC has said it is time to re-orient Bharatmala. The projects need to be completed faster and not just building more, said PWC. “Completing unfinished works unlocks toll revenue sooner, enables monetisation, and delivers immediate logistics and travel-time gains to users,” it mentioned.
“Review L1 model”
In its pre-Budget recommendations, PWC has also recommended that the administration could rethink the L1 approach. The L1 strategy is the default government’s strategy to pick contractors on the lowest cost approach. “Instead, focus on performance outcomes, overall value, design innovation, or risk-sharing quality, and reward sustainability and innovation,” said PWC.
