Projects in Railways, Roads, Power, Urban Development facing a lag
RAILWAYS & METRO RAIL

Projects in Railways, Roads, Power, Urban Development facing a lag

Of a total of 371 projects – each amounting to Rs 10 billion or more – delayed across four sectors, the railways takes the lead with 174 delayed projects, followed by road transport and highways at 127 projects; power at 56; and urban development at 14 projects. 

The September 2018 Flash Report clearly indicates these numbers with time and cost overruns compared to the original schedule. The report also analyses sectoral delays with projects amounting to Rs 1.50 billion and above. 

In case of the railways, the total original cost of implementation of 375 projects when sanctioned was Rs 4,783.59 billion but this subsequently increased to Rs 7,253.43 billion, implying a staggering cost overrun of 51.6 per cent.

The expenditure incurred on these projects till September 2018 is Rs 1,723.61 billion, which is 23.8 per cent of the anticipated project cost. Some major projects that faced delay and cost overruns included the Western Dedicated Freight Corridor. The project, worth Rs 165 billion, which commenced in 2007 is now facing an additional cost overrun of Rs 345 billion. The current project cost is around Rs 511 billion. Similarly, the Eastern Dedicated Freight Corridor Project, which was inaugurated with much fanfare in 2006, is facing an additional cost overrun of Rs 165 billion from its original cost of Rs 115.89 billion. The total cost of the project is Rs 281.81 billion.

Over the years, the power sector witnessed an overall cost overrun of 21.3 per cent to Rs 3,725.25 billion as against the original cost of Rs 3,072.23 billion for 105 projects. The expenditure incurred on these projects till September 2018 is Rs 2,345.28 billion, which is 63 per cent of the anticipated project cost. By far, the power sector has seen the maximum cost incurred on projects (percentage-wise) as against other sectors.

In the roads sector, out of 574 projects, two projects are ahead of schedule, 81 projects are on schedule and 90 projects are delayed. Surprisingly, 368 projects do not have fixed dates of commissioning and 33 projects were sanctioned without any commissioning date but subsequently dates of completion were finalised. The total original cost of implementation of 574 projects when sanctioned was around Rs 3,869.25 billion, but this was increased to Rs 4,011.59 billion implying a cost overrun of 3.7 per cent. The expenditure incurred on these projects till September 2018 is Rs 1,326.43 billion, which is 33 per cent of the anticipated cost of the projects.

Urban development, too, was privy to project delays and cost overruns. The total original cost of implementation of 61 projects, when sanctioned, was Rs 1, 717.44 billion, but this was subsequently increased to Rs 1,794.53 billion, implying a cost overrun of 4.5 per cent. 

The expenditure incurred on these projects till September 2018 is Rs 736 billion, which is 41 per cent of the anticipated cost of the projects.

SHRIYAL SETHUMADHAVAN and RAHUL KAMAT

Of a total of 371 projects – each amounting to Rs 10 billion or more – delayed across four sectors, the railways takes the lead with 174 delayed projects, followed by road transport and highways at 127 projects; power at 56; and urban development at 14 projects.  The September 2018 Flash Report clearly indicates these numbers with time and cost overruns compared to the original schedule. The report also analyses sectoral delays with projects amounting to Rs 1.50 billion and above.  In case of the railways, the total original cost of implementation of 375 projects when sanctioned was Rs 4,783.59 billion but this subsequently increased to Rs 7,253.43 billion, implying a staggering cost overrun of 51.6 per cent. The expenditure incurred on these projects till September 2018 is Rs 1,723.61 billion, which is 23.8 per cent of the anticipated project cost. Some major projects that faced delay and cost overruns included the Western Dedicated Freight Corridor. The project, worth Rs 165 billion, which commenced in 2007 is now facing an additional cost overrun of Rs 345 billion. The current project cost is around Rs 511 billion. Similarly, the Eastern Dedicated Freight Corridor Project, which was inaugurated with much fanfare in 2006, is facing an additional cost overrun of Rs 165 billion from its original cost of Rs 115.89 billion. The total cost of the project is Rs 281.81 billion. Over the years, the power sector witnessed an overall cost overrun of 21.3 per cent to Rs 3,725.25 billion as against the original cost of Rs 3,072.23 billion for 105 projects. The expenditure incurred on these projects till September 2018 is Rs 2,345.28 billion, which is 63 per cent of the anticipated project cost. By far, the power sector has seen the maximum cost incurred on projects (percentage-wise) as against other sectors. In the roads sector, out of 574 projects, two projects are ahead of schedule, 81 projects are on schedule and 90 projects are delayed. Surprisingly, 368 projects do not have fixed dates of commissioning and 33 projects were sanctioned without any commissioning date but subsequently dates of completion were finalised. The total original cost of implementation of 574 projects when sanctioned was around Rs 3,869.25 billion, but this was increased to Rs 4,011.59 billion implying a cost overrun of 3.7 per cent. The expenditure incurred on these projects till September 2018 is Rs 1,326.43 billion, which is 33 per cent of the anticipated cost of the projects. Urban development, too, was privy to project delays and cost overruns. The total original cost of implementation of 61 projects, when sanctioned, was Rs 1, 717.44 billion, but this was subsequently increased to Rs 1,794.53 billion, implying a cost overrun of 4.5 per cent.  The expenditure incurred on these projects till September 2018 is Rs 736 billion, which is 41 per cent of the anticipated cost of the projects. SHRIYAL SETHUMADHAVAN and RAHUL KAMAT

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement