How India is losing Rs 3 trillion in infrastructure projects!

02 Jan 2019 CW Team

Over the past few decades, India has witnessed the launch of several big-ticket infrastructure projects, pumping billions into the country’s aviation, industrial development, smart cities, railways, roads and energy sectors.
However, the scale of the projects have also led to delays in some of them. The most recent available Flash Report (September 2018), published by the Ministry of Statistics and Planning, is testament to this.
According to the report, out of 1,420 central-sector infrastructure projects worth Rs 1.50 billion and above, 385 are on schedule, 366 projects are delayed, 358 projects reported cost overruns, and 136 projects reported both time and cost overruns with respect to their original schedules. That said, around 32 projects have reported additional delays vis-à-vis their date of completion. Of these 32 projects, 14 are mega projects costing Rs 10 billion and above.
The total original cost of implementation of the 1,420 projects when sanctioned was Rs 18.05 trillion but this was subsequently revised to Rs 21.63 trillion, implying a cost overrun of Rs 3.38 trillion (20 per cent of the original cost). The expenditure incurred on these projects till September 2018 is Rs 7.83 trillion, which is 36.21 per cent of the anticipated cost of the projects.
However, the number of delayed projects decreases to 300 if delay is calculated on the basis of latest schedule of completion. Further, for 651 projects, neither the year of commissioning nor the tentative gestation period has been reported. Out of 366 delayed projects, 100 (27.32 per cent) projects have an overall delay in the range of one to twelve months, 69 (18.85 per cent) projects have a delay in the range of 13 to 24 months, 91 (24.86 per cent) projects have a delay in the range of 25 to 60 months and 106 (28.96 per cent) projects have a delay of 61 months and above.
The average time overrun in these 366 delayed projects is 45.95 months.

SHRIYAL SETHUMADHAVAN and RAHUL KAMAT

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..