The economics of large dams in India

Abstract

Large dams in India have proved costly failures. In theory, the Planning Commission of India will only sanction funds for a new project if it shows a benefit-cost ratio equal to or above 1.1 to 1. In practice, however, many dams have been funded which have since turned out to be economic white elephants. This is not altogether surprising: those who plan India's dams have long since learned how to use 'science' to fudge the real costs of projects and manipulate a favourable benefit-cost ratio. -from Editors