India Could Save Rs 17 Trillion in Infra Pipeline: White Paper

India can save up to Rs 17 trillion across the National Infrastructure Pipeline by strengthening pre-construction planning, particularly the Detailed Project Report (DPR) stage, according to a new white paper released by Vector Consulting Group. The report highlights structural inefficiencies in DPR development that contribute to delays and cost escalations across large projects.

Based on insights from CXOs of 16 infrastructure companies with revenues above Rs 10 billion and 30 DPR consulting firms, the study finds that most mid-execution disruptions stem from incomplete surveys, outdated baseline data and inadequate design validation during the DPR stage. Land and right-of-way issues, utility conflicts, funding interruptions and approval delays were identified as common consequences of weak pre-construction planning.

A key concern highlighted in the report is the selection of DPR consultants under the QCBS system, which often converges into an L1 race due to marginal differences in technical scores. This results in unsustainably low commercial bids, limited viability and insufficient resources allocated to rigorous field surveys and design checks. India currently spends only 0.5–1 per cent of project cost at the pre-construction stage, far below the global benchmark of about 10 per cent.

“India is fully capable of world-class execution,” said Anantha Keerthi, Senior Partner, Vector Consulting Group. “If we strengthen the DPR stage with a modest increase in investment, this can pay for itself many times over through avoided delays and cost overruns.”

The white paper recommends structural reforms including time-and-materials DPR contracting, integrated pre-construction war rooms, focused review cadences, a DPR-focused project management office and stronger validation of baseline studies. According to the report, improving the DPR process can realign incentives for all stakeholders, improve margins for contractors, draw stronger firms to infrastructure development and accelerate delivery timelines.