New Delhi: At least 449 infrastructure projects, each involving an investment of Rs 150 crore or more, had their cost overrun by more than Rs 5.01 lakh crore in March 2024, an official report said.
According to the Ministry of Statistics and Program Implementation (MOSPI), which monitors infrastructure projects worth Rs 150 crore and above, 449 out of 1,870 projects had cost overruns and 779 projects were delayed.
"The total original cost of implementation of 1,873 projects was Rs 26,87,535.6 crore and their estimated completion cost is likely to be Rs 31,88,859.0 crore, indicating an overall cost overrun of Rs 5,01,323.33 crore (18.65 per cent of the original cost) ,” the ministry's latest report for March 2024 said.
According to the report, till March 2024, the expenditure on these projects was Rs 17,11,648.99 crore, which is 53.68 percent of the estimated cost of the projects. However, the number of delayed projects has come down to 567, with the delay being calculated based on the latest schedule of completion.Additionally, it said neither the year of commissioning nor the probable construction period has been reported for 393 projects. Of the 779 delayed projects, 202 were delayed by a total of 1-12 months, 181 projects were delayed by 13-24 months, 277 projects were delayed by 25-60 months, and 119 projects were delayed by more than 60 months. There has been a delay.
The average time overrun in these 779 delayed projects is 36.04 months.
Reasons for the deadline cited by various project implementing agencies include delays in land acquisition, obtaining forest and environment clearances and lack of infrastructure support and linkages.
Delays in tie-up for project financing, finalization of detailed engineering changes in the scope, tendering, ordering and equipment supply, and law and order problems are among the other reasons.The report also cited state-wise lockdowns due to COVID-19 (imposed in 2020 and 2021) as the reason for the delay in implementation of these projects.
It has also been observed that project executing agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests under-reporting of time/cost overrun figures.
According to the Ministry of Statistics and Program Implementation (MOSPI), which monitors infrastructure projects worth Rs 150 crore and above, 449 out of 1,870 projects had cost overruns and 779 projects were delayed.
"The total original cost of implementation of 1,873 projects was Rs 26,87,535.6 crore and their estimated completion cost is likely to be Rs 31,88,859.0 crore, indicating an overall cost overrun of Rs 5,01,323.33 crore (18.65 per cent of the original cost) ,” the ministry's latest report for March 2024 said.
According to the report, till March 2024, the expenditure on these projects was Rs 17,11,648.99 crore, which is 53.68 percent of the estimated cost of the projects. However, the number of delayed projects has come down to 567, with the delay being calculated based on the latest schedule of completion.Additionally, it said neither the year of commissioning nor the probable construction period has been reported for 393 projects. Of the 779 delayed projects, 202 were delayed by a total of 1-12 months, 181 projects were delayed by 13-24 months, 277 projects were delayed by 25-60 months, and 119 projects were delayed by more than 60 months. There has been a delay.
The average time overrun in these 779 delayed projects is 36.04 months.
Reasons for the deadline cited by various project implementing agencies include delays in land acquisition, obtaining forest and environment clearances and lack of infrastructure support and linkages.
Delays in tie-up for project financing, finalization of detailed engineering changes in the scope, tendering, ordering and equipment supply, and law and order problems are among the other reasons.The report also cited state-wise lockdowns due to COVID-19 (imposed in 2020 and 2021) as the reason for the delay in implementation of these projects.
It has also been observed that project executing agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests under-reporting of time/cost overrun figures.
