Adversitement
Infrastructure Projects Face ₹4.92 Lakh Crore Cost Overrun, Report Reveals
Published On : 2024-03-31T15:06:29+0530 [ IST ] |
Author : Mayur_Tembhare
Home
Business
Investment
India :
An official report has revealed that as many as 443 infrastructure projects, each with an investment of ₹150 crore or more, experienced a cost overrun exceeding ₹4.92 lakh crore in February 2024.
According to the Ministry of Statistics and Programme Implementation (MoSPI), which monitors such projects, out of a total of 1,902 projects, 443 reported cost overruns, while 764 projects faced delays.
The original cost of these projects was estimated at ₹27,08,030.44 crore, but their anticipated completion cost is now projected to be ₹32,00,507.55 crore, indicating an overall cost overrun of ₹4,92,477.11 crore, or 18.19 per cent of the original cost.
As of February 2024, the expenditure incurred on these projects amounted to ₹16,76,739 crore, which is 52.39 per cent of the anticipated cost.
However, the number of delayed projects reduces to 568 if calculated based on the latest schedule of completion, the report noted.
Among the delayed projects, 188 have experienced delays of 1-12 months, 185 projects have been delayed for 13-24 months, 275 projects for 25-60 months, and 116 projects have been delayed for more than 60 months, with an average time overrun of 36.27 months.
Project implementing agencies cited various reasons for the time overrun, including delays in land acquisition, obtaining clearances, and lack of infrastructure support. Other factors include delays in project financing, finalization of engineering, change in scope, and law and order problems.
The report also highlighted state-wise lockdowns due to Covid-19 in 2020 and 2021 as contributing to the delay in project implementation.
Furthermore, the report raised concerns about under-reporting of time/cost overrun figures, as many project executing agencies fail to report revised cost estimates and commissioning schedules.
Source : Business Line
Tags : Covid-19 lockdowns , infrastructure projects , cost overrun , project financing , delays , project implementation , project executing agencies. , Ministry of Statistics and Programme Implementation ,
Summary : The Ministry of Statistics and Programme Implementation's report revealed that 443 infrastructure projects, with investments of over ₹150 crore each, faced a cost overrun of ₹4.92 lakh crore in February 2024. Out of 1,902 projects, 443 reported cost overruns, and 764 experienced delays. The original cost of the projects was ₹27,08,030.44 crore, but the anticipated completion cost rose to ₹32,00,507.55 crore. Reasons for delays included land acquisition, clearance issues, and lack of infrastructure support. Covid-19 lockdowns also contributed to project delays. The report raised concerns about under-reporting of time/cost overrun figures by project executing agencies.
Adversitement