As many as 393 infrastructure projects, every entailing an funding of ₹150 crore or extra, have been hit by cost overruns of greater than Rs 4.64 lakh crore in June 2023, an official report stated. | consultant picture
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As many as 393 infrastructure projects, every entailing an funding of ₹150 crore or extra, have been hit by cost overruns of greater than Rs 4.64 lakh crore in June 2023, an official report stated.
According to the Ministry of Statistics and Programme Implementation, which screens infrastructure projects value ₹150 crore and above, out of 1,643 projects, 393 reported cost overruns and as many as 815 projects have been delayed.
“Total original cost of implementation of the 1,643 projects was ₹23,86,687.07 crore and their anticipated completion cost is likely to be ₹28,51,556.84 crore, which reflects overall cost overruns of ₹4,64,869.77 crore (19.48 per cent of original cost),” the ministry’s newest report for June 2023 stated.
According to the report, the expenditure incurred on these projects until June 2023 was ₹14,99,771.71 crore, 52.59% of the anticipated cost of the projects.
However, it said that the quantity of delayed projects decreased to 594, if delay is calculated on the premise of the newest schedule of completion.
Further, it said that for 336 projects neither the yr of commissioning nor the tentative gestation interval has been reported.
Out of the 815 delayed projects, 193 have total delays in the vary of 1-12 months, 192 have been delayed for 13-24 months, 293 projects for 25-60 months and 137 projects have been delayed for greater than 60 months.
The common time overrun in these 815 delayed projects was 37.49 month.
Reasons for time overruns as reported by numerous challenge implementing companies embody delay in land acquisition, delay in acquiring forest and surroundings clearances, and lack of infrastructure assist and linkages.
Delay in tie-up for challenge financing, finalisation of detailed engineering, change in scope, tendering, ordering and tools provide, and regulation and order issues have been among the many different causes.
The report additionally cited state-wise lockdowns because of COVID-19 (imposed in 2020 and 2021) as a cause for the delay in implementation of these projects.
It has additionally been noticed that challenge executing companies aren’t reporting revised cost estimates and commissioning schedules for many projects, which suggests that point/cost overrun figures are under-reported, it added.
