According to the management consultancy McKinsey & Co, delays and inefficiencies in the performance of infrastructure project during the Eleventh and Twelfth Five-year plans may lead to loss of $200 billion to gross domestic product by 2017.

This entails a loss of 1.1 % in the country's GDP growth.

The firm said that the main reason of GDP loss was spread across tendering, executing and achieving financial closure of projects.

In a statement, McKinsey & Co partner, Mr. Prashant Gupta, said, "The shortfall in awarding projects as per plan (eleventh and twelfth Five-Year Plans) could result in a $100 billion loss to GDP; time and cost over-runs in project execution could lead to another $80 billion loss; and capital constraints would account for the remaining loss of $20 billion."

the fitm noted a 30 percent shortage during the last fiscal, in granting projects in power generation, national highways and major ports.

It is anticipated that India will not achieve its targeted investment of $500 billion between 2007 and 2011. Different reports peg the actual investment to be between $270 to $320 billion.

Chief Financial Officer of Hindustan Construction Company, Mr. Praveen Sood added that delays in implementation of projects would surely lead to huge drawback to the economy.

"China does any project 2-3 times faster than India. There should basically be a willingness to implement the reform process," Mr. Sood added.