360 infrastructure projects report cost overruns of Rs 3.88 trillion
Real Estate

360 infrastructure projects report cost overruns of Rs 3.88 trillion

The Ministry of Statistics and Programme Implementation (MoSPI), charged with the responsibility of monitoring infrastructure projects worth Rs 1.5 billion or more, has released a report for June 2019 according to which – out of the total 1608 projects, more than 360 have shown cost overruns to the cost of Rs 3.88 trillion. 

As reported, the report states that the original estimated cost of all the projects summed up to be approximately Rs 19.18 trillion. The completion cost is now expected to be around Rs 23.05 trillion. There have therefore been cost overruns of around 20.23 per cent of the original cost. 

Additionally, it also included the number of projects that had crossed their deadlines, these amounted to 550. However, reportedly, the number of time escalations decreases to 474 if the criteria for estimating the delay is done on the basis of the latest schedule of completion. The average time overrun for all 550 projects was reported to be 39.24 months. 

Escalations in time could be caused by issues relating to obtaining forest clearances, acquiring required land and supply of equipment. According to the report, developers also face additional constraints in regards to funding, geographical conditions, labour issues and court cases amongst other reasons. 

The Ministry of Statistics and Programme Implementation (MoSPI), charged with the responsibility of monitoring infrastructure projects worth Rs 1.5 billion or more, has released a report for June 2019 according to which – out of the total 1608 projects, more than 360 have shown cost overruns to the cost of Rs 3.88 trillion. As reported, the report states that the original estimated cost of all the projects summed up to be approximately Rs 19.18 trillion. The completion cost is now expected to be around Rs 23.05 trillion. There have therefore been cost overruns of around 20.23 per cent of the original cost. Additionally, it also included the number of projects that had crossed their deadlines, these amounted to 550. However, reportedly, the number of time escalations decreases to 474 if the criteria for estimating the delay is done on the basis of the latest schedule of completion. The average time overrun for all 550 projects was reported to be 39.24 months. Escalations in time could be caused by issues relating to obtaining forest clearances, acquiring required land and supply of equipment. According to the report, developers also face additional constraints in regards to funding, geographical conditions, labour issues and court cases amongst other reasons. 

Next Story
Infrastructure Energy

Amazon Achieves 100% Renewable Energy

Amazon has achieved its goal of powering its global operations with 100% renewable energy, seven years ahead of its original target set for 2030, as reported. This significant milestone underscores Amazon's commitment to sustainability and its leadership in corporate renewable energy adoption. Amazon's journey towards 100% renewable energy began with a series of strategic investments in solar and wind projects around the world. These projects include large-scale wind farms and solar arrays that contribute substantial amounts of clean energy to the grid. By reaching this goal early, Amazon has ..

Next Story
Infrastructure Energy

Faster Renewable Expansion Needed: IRENA

The International Renewable Energy Agency (IRENA) has emphasized the urgent need for an accelerated expansion of renewable energy to meet global 2030 targets, as reported by the Economic Times. According to IRENA, current efforts are insufficient, and a substantial increase in the deployment of renewable energy technologies is crucial to achieving climate goals and ensuring sustainable development. IRENA's latest report highlights that despite progress in renewable energy adoption, the pace of growth must triple to align with the targets set in the Paris Agreement. The report stresses that ren..

Next Story
Infrastructure Energy

SECI Announces Green Hydrogen Tender

SECI's Green Hydrogen Tranche-II tender is designed to attract investments and partnerships in the green hydrogen sector. The tender aims to promote the development of green hydrogen projects across the country, leveraging India's vast renewable energy resources. This move aligns with the government's National Hydrogen Mission, which focuses on creating a sustainable hydrogen economy and reducing carbon emissions. The tender seeks proposals from companies and consortiums capable of establishing large-scale green hydrogen production facilities. These facilities will utilize renewable energy sou..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000

Join us Telegram