Infrastructure

Laws and
their effects
on Projects
Introduction to Indian
Infrastructure Industry

– India’s construction Industry employs a workforce of an estimated 3.2 crore

people
– Second biggest contributor to India’s GDP
– Total expenditure on infrastructure for the next fiscal will stand at Rs 5.97 lakh
crore
– According to the Ministry of Statistics and Programme Implementation
(G.o.I.), 215 projects out of 782 projects are delayed
– Time over-run ranging anywhere between 1 to 261 months
Introduction to Indian
Infrastructure Industry
GOVERNING LAWS
– Land zoning Laws
– Land Acquisition Act
– Labour Laws
– Environmental Laws
– The National Green Tribunal Act, 2010
– The Environment Protection Act, 1986
– Transfer of Property Act ,1882
– Forest (Conservation) Act, 1980
– Contractual Frameworks associated with the agreement for the projects
– Dispute Resolution Framework like Arbitration and Conciliation Act, 1996
– RTI
– Competing Act
Current Scenario

– Project Developers are required to adhere to a number of laws by

various levels of the government; Central, State and Local. This is
further complicated when the nature and size of projects increases
– process of obtaining approvals is not streamlined, and takes a long time.
This results in immense delays in commencement and completion of
the projects
– The end result of this delay is the humongous cost over runs, many-
times equaling more than 50% of the cost of the project itself
– In the real estate, the lack of transparency in transactional dealings
plagues the sector
Suggested Changes

– Most of the matters related to regulation of a construction project are

matters on which the competent authority is the state government,
therefore it is suggested that each state create its own laws wrt
construction projects
– In each state, a single regulatory body should be made in charge for
administrative aspects of a project as well as the monitoring of the projects.
This body should be the single point of contact for the developers towards
getting the required clearances from the local bodies as well as state
government.
– The law should clearly state in detail the processes and procedures to be
followed while dealing with issues arising while the project is being
executed. This will introduce some level of transparency in the process of
selection of contractors / project developers by the government.
References

– The Gazette of India

– http://wrd.bih.nic.in/
– https://gettingthedealthrough.com/area/7/jurisdiction/13/construction
-india/
– http://www.moef.gov.in/sites/default/files/Final%20HWM%20Rules%20
2016%20%28English%29.pdf