The role of private sector for reducing disaster risk in large scale infrastructure and real estate development: Case of Delhi

Abstract

This study is an attempt to investigate the role of private investment in large scale infrastructure projects in reducing disaster risk in India within the context of a regulatory environment. It attempts to identify gaps in the processes of planning, stakeholder incentives and the enabling environment for the inclusion of disaster risk reduction measures in the developmental processes of large scale infrastructure projects. The study is done in reference to four large infrastructure and real estate projects in Delhi, India.Key findings: There are gaps in the regulatory environment that drive lack of incentives for the private sector stakeholders to invest in disaster risk reduction measures in large scale infrastructure projects. The approval processes and capacities of authorities are not sufficient to ensure the inclusion of disaster risk reduction measures, which leads to developments built in disaster prone areas, increasing the exposure and thereby the risk to property, people, systems and economy.This study was commissioned by the United Nations International Strategy for Disaster Risk (UNISDR)11The UNISDR terminology will be used for terms such as disaster, risk, reduction, capacity, exposure, hazard, mitigation, preparedness, prevention and risk transfer, unless otherwise specified. for the Global Assessment Report 2013 (GAR13) titled “From Shared Risk to Shared Value: The Business Case for Disaster Risk Reduction”. It is published in the context of increasing global losses owing to disasters, and an enhanced realisation by senior management in private sector regarding the role that disaster risk reduction methodologies play in reducing uncertainty, building confidence, cutting costs and creating value.