438 infrastructure projects cost overrun of nearly Rs 4.34 lakh crore

The Ministry of Statistics and Programme Implementation (MOSPI) overviews infrastructure projects that are worth Rs. 150 crore and more. Out of the 1,680 such projects, 436 mentioned cost overruns, and 539 were totally delayed.

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438 infrastructure projects cost overrun of nearly Rs 4.34 lakh crore

Approximately 438 infrastructure projects worth Rs. 150 crore or much more each, have met cost overruns which in total amounts to more than Rs. 4.34 lakh crore, according to one report.

The Ministry of Statistics and Programme Implementation (MOSPI) overviews infrastructure projects that are worth Rs. 150 crore and more. Out of the 1,680 such projects, 436 mentioned cost overruns, and 539 were totally delayed.

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“Total original cost of implementation of the 1,680 projects was Rs 21,74,182.86 crore and their anticipated completion cost is likely to be Rs 26,08,330.02 crore, which reflects overall cost overruns of Rs 4,34,147.16 crore (19.97 percent of original cost),” the ministry’s most recent report for October 2021 stated.

The report stated that the expenditure incurred on these several projects is Rs. 12,64,545.31 crore till October 2021, which is nearly 48.48% of the expected cost of these projects. However, the report even mentioned that the delayed number of projects comes down to 377 if the delay is calculated on the grounds of the recent schedule of completion.

Moreover, for 837 projects neither the tentative gestation period has been mentioned nor the year of commissioning.

539 projects have been delayed, out of which 98 have a total delay in the range of 1-12 months, 109 projects have been delayed for approx. 13-24 months, 211 projects for 25-60 months, and 121 have certain delays of more than 61 months.

The causes of the time overruns as mentioned by several projects implementing agencies are delay in land acquisition, lack of infrastructure linkages and support, and delay in obtaining environmental and forest clearances.

Other causes also include delay in tendering, delay in tie-up for the financing of the project, delay in finalizing the detailed engineering, ordering and equipment supply, change in scope and law, and order problems.

The report also mentioned state-wise lockdowns due to the Covid pandemic as a cause for the delay in implementation of these several projects. It has even been seen that project agencies are not reporting any revised estimated costs and commissioning times for several projects, which shows that time/cost overrun figures are duly reported, it further added.

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438 infrastructure projects cost overrun of nearly Rs 4.34 lakh crore
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The Ministry of Statistics and Programme Implementation (MOSPI) overviews infrastructure projects that are worth Rs. 150 crore and more. Out of the 1,680 such projects, 436 mentioned cost overruns, and 539 were totally delayed.
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THE POLICY TIMES
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