New Delhi: A strong sense of increased scrutiny on bureaucrats, bankers, PSU officials and the government project heads have led to a ‘play it safe’ style of working, according to an “Industry Perception” survey done by Assocham. This is delaying key infrastructure projects in sectors like road, ports, coal and power, said the chamber.
“An overwhelming part of India Inc perceives the NDA government to be free from any corruption stigma, but feels that a strong sense of oversight on bureaucrats, bankers, PSU officials and the government project heads have led to a ‘play it safe’ style of working,” said Assocham.
It said that for instance, in the absence of environment clearances at the Centre and state levels, thousands of ready to move in houses are stuck in the NCR. The industry body said that real estate developers are ready to hand over flats, but the issues like bird sanctuary nearby have not been resolved, resulting in delays causing financial loss and suffering to middle class people who have booked these units.
“Sharing their experience at the implementation level, the corporate senior functionaries feel that it is the project execution levels that the officials are taking a ‘safe’ approach. They want to go by the rulebook, which at times is beset with impractical and outdated rules. Any deviation from these rules would involve exercise of discretionary powers which these officials are not willing to use,” said Assocham. It specially noted the problem with regard to officials at the project level in regard to projects in the highway sector.
Assocham said that when it comes to banks, the focus among the bankers, from branch manager to CMD’s office is excessively on the non-performing assets (NPAs). Quarter on quarter, the targets are to somehow reduce the NPA ratios.“The banks, especially among PSUs, have not built solid risk management systems and depend on the conventional methods of hits and trials,” said Assocham.
