About 483 infrastructure projects of Rs 150 cr each show cost overruns

23 Aug 2021 CW Team

483 infrastructure projects worth Rs 150 crore or more have cost overruns totalling more than Rs 4.43 lakh crore, according to a report.

Infrastructure projects worth more than Rs 150 crore are tracked by the Ministry of Statistics and Programme Implementation.

483 of the 1,781 projects had cost overruns, while 504 were delayed.

The total cost of these projects up to July 2021 was around Rs 13,22,515.87 crore, or 48.53% of the total cost estimate, according to the report.

However, if delays are calculated using the most recent completion schedule, the number of delayed projects drops to 369, according to the report.

Furthermore, neither the year of commissioning nor the estimated gestation period has been reported for 1,001 projects.

Out of the 504 projects that have been delayed, 92 have been delayed for 1 to 12 months, 118 have been delayed for 13 to 24 months, 178 have been delayed for 25 to 60 months, and 116 have been delayed for 61 months or more.

In these 504 delayed projects, the average time overrun is 46.85 months.

Delays in land acquisition, delays in obtaining forest and environmental clearances, and a lack of infrastructure support and linkages are among the reasons for time overruns, according to various project implementing agencies.

Other reasons include a delay in securing project financing, a delay in completing detailed engineering, a change in scope, a delay in tendering, ordering, and equipment supply, and law and order issues.

The report also cited state-by-state lockdowns caused by Covid-19 as a reason for the projects' delays.

Project agencies have also been observed not reporting revised cost estimates and commissioning schedules for many projects, implying that time or cost overrun figures are underreported.

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Also read: 470 infra projects show cost overruns worth Rs 4.38 lakh cr

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