Advertise
Subscribe
  1. Home
  2. Infrastructure Urban
  3. SMART CITIES
  4. How India is losing Rs 3 trillion in infrastructure projects!
How India is losing Rs 3 trillion in infrastructure projects!
SMART CITIES

How India is losing Rs 3 trillion in infrastructure projects!

02 Jan 2019 2 Min Read 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
 

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  

Rahsta
Next Story
Infrastructure Urban
23 May 2025

CRCL, IIT Delhi Sign MoU to Boost Science and Ease of Business

The Central Revenues Control Laboratory (CRCL), Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance, and the Indian Institute of Technology (IIT) Delhi signed a Memorandum of Understanding (MoU) toward trade facilitation and improving the ease of doing business. This MoU collaboration aims to foster R&D, innovation, and scientific excellence at CRCL, bolstering trade facilitation and regulatory efficiency.The MoU was signed by Prof. Rangan Banerjee, Director, IIT Delhi, and Shri V. Suresh, Director, CRCL, in presence of Shri Surjit Bhujabal, Speci..

Read More
Next Story
Infrastructure Urban
23 May 2025

CAQM Sub-Committee Activates 27-Point Plan to Improve NCR Air Quality

The daily average AQI of Delhi has been hovering marginally above 200 threshold with forecast of slight improvement since last two days. Today, Delhi’s daily average Air Quality Index (AQI) clocked 213 (‘Poor’ category), as per the daily AQI Bulletin provided by the Central Pollution Control Board (CPCB), owing to variable winds. In wake of the average/ overall air quality of Delhi recording ‘Poor’ air quality category ranging between 201-300, the CAQM Sub-Committee on GRAP met today to take stock of the current air quality scenario of Delhi-NCR. While comprehensively reviewing the a..

Read More
Next Story
Infrastructure Urban
23 May 2025

DoT Launches Financial Fraud Risk Indicator to Boost Cybersecurity

In a major step towards combating cyber fraud and financial crime, the Department of Telecommunications (DoT) has announced sharing of “Financial Fraud Risk Indicator (FRI)” with stakeholders- an output from a multi- dimensional analytical tool developed as part of the Digital Intelligence Platform (DIP) to empower financial institutions with advance actionable intelligence for cyber fraud prevention. This will enhance cyber protection and validation checks in case of mobile numbers flagged with this tool when digital payment is proposed to be made to such numbers.What is the “Financial ..

Read More

Latest Updates

Equipment
23 May 2025

CASE Launches Vijeta to Boost Jobs in Construction Equipment

ECONOMY & POLICY
23 May 2025

Systems Spray-Cooled Announces New Investment, Global..

ECONOMY & POLICY
23 May 2025

Birla Opus Prime Rolls Out Prime Express Across 44 Cities in..

ECONOMY & POLICY
23 May 2025

Ras Al Khaimah Mortgage Market Soars 22,000%, Boosting..

ECONOMY & POLICY
23 May 2025

Vedanta Aluminium Unveils Wildlife Initiatives on..

Energy
23 May 2025

THINK Gas Launches Six New LNG Dispensing Stations

ECONOMY & POLICY
23 May 2025

Haryana Boosts MSME Ecosystem and Digital Governance

ECONOMY & POLICY
23 May 2025

Assam Government Signs Rs 229 Billion Project MoUs

Real Estate
23 May 2025

Lucknow Approves Rs two Billion for Urban Development

ROADS & HIGHWAYS
23 May 2025

3,827 Hectares Acquired for Industrial Corridors Along..

Advertisement

Recommended for you

Economy
23 May 2025

CRCL, IIT Delhi Sign MoU to Boost Science and..

Economy
23 May 2025

CAQM Sub-Committee Activates 27-Point Plan to..

Economy
23 May 2025

DoT Launches Financial Fraud Risk Indicator to..

WATER & WASTE
23 May 2025

Bengaluru’s Flood Risk Grows: Urgent Need for..

Economy
23 May 2025

WACKER Opens New Specialty Silicone Plants in..

Cement
23 May 2025

WCA Chief Urges Peace and Innovation to Tackle..

Economy
23 May 2025

Rosatom Builds First RITM-400 Reactor for Rossiya..

Energy
23 May 2025

REC Raises Rs 56.35 Billion via Private Bond..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

 Talk to us?