Out of 1,418 projects, 346 reported cost overruns and as many as 823 projects had been delayed. Image for illustration function solely.
| Photo Credit: PTI
As many as 346 infrastructure projects, every entailing an funding of ₹150 crore or extra, have been hit by cost overruns of greater than ₹4.46 lakh crore, as per an official report.
According to the Ministry of Statistics and Programme Implementation, which displays infrastructure projects value ₹150 crore and above, out of 1,418 projects, 346 reported cost overruns and as many as 823 projects had been delayed.
“Total original cost of implementation of the 1,418 projects was ₹20,38,026.75 crore and their anticipated completion cost is likely to be ₹24,84,846.99 crore, which reflects overall cost overruns of ₹4,46,820.24 crore [21.92% of original cost],” the Ministry’s newest report for February 2023 mentioned.
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According to the report, the expenditure incurred on these projects until February 2023 is ₹13,62,707.98 crore, which is 54.84% of the anticipated cost of the projects.
However, the quantity of delayed projects decreases to 643 if delay is calculated on the premise of the newest schedule of completion.
Further, it acknowledged that for 316 projects neither the yr of commissioning nor the tentative gestation interval has been reported.
Out of the 823 delayed projects, 172 have general delays within the vary of 1-12 months, 171 have been delayed for 13-24 months, 355 projects for 25-60 months and 125 projects have been delayed for greater than 60 months.
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The common time overrun in these 823 delayed projects was 38.63 months.
Reasons for time overruns as reported by varied undertaking implementing companies embrace delay in land acquisition, delay in acquiring forest and surroundings clearances, and lack of infrastructure help and linkages.
Delay in tie-up for undertaking financing, finalisation of detailed engineering, change in scope, tendering, ordering and gear provide, and regulation and order issues had been among the many different causes.
The report additionally cited State-wise lockdowns on account of COVID-19 (imposed in 2020 and 2021) as a purpose for the delay in implementation of these projects.
It has additionally been noticed that undertaking executing companies are usually not reporting revised cost estimates and commissioning schedules for a lot of projects, which suggests that point/cost overrun figures are under-reported, it added.
