Infra projects show huge cost overruns

24 Nov 2020 Editorial Team

All infrastructure projects worth Rs 1.50 billion and above are monitored by the Ministry of Statistics and Programme Implementation (MoSPI). The Ministry's latest report for September 2020 reported that the original cumulative cost for the 1,663 projects was Rs 21.09 trillion. However, the anticipated cost of completion of the projects is probably going to be Rs 25.47 trillion. The overall cost overruns indicated by this is of Rs 4.37 trillion, which is more than 20 per cent of the initially calculated cost.

However, the report said that if the delay is assessed based on the latest schedule of completion, the number of delayed projects reduces to 430.

The report also mentioned that neither the tentative gestation period nor the year of commissioning was reported for 924 projects.

Time overruns quantum. Of the 531 projects that have been delayed, 121 projects reflect a delay of 61 months and more; 160 projects show a delay of any duration between 25 to 60 months; 128 projects reflect a delay in the range of 13-24 months; while 122 projects show an overall delay from anywhere between 1-12 months. The average time overrun in all the 531 projects is 43.89 months.

Several project-implementing agencies reported various reasons for the time overruns. The reasons varied from delay in acquiring environment and forest clearances, a delay in acquisition of land or even a lack of linkages and infrastructural support.

The report mentioned tendering delays, delay in ordering and supplying of equipment, delay in finalisation of detailed engineering, delays in project financing tie-ups and issues with law and order as some of the other reasons.

The report also stated that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time and cost overrun figures are under-reported.

As per recent reports, 437 infrastructure projects, each worth Rs 1.50 billion or more have been adversely affected due to cost overruns, amounting to over Rs 4.37 trillion. Of 1,663 such projects, 531 projects witnessed time escalation, and 437 projects have reported cost overruns. Cost overrun quantum. The incurred expenditure on the projects stood at Rs 11.62 trillion till September, which was 45.60% of the expected cost. All infrastructure projects worth Rs 1.50 billion and above are monitored by the Ministry of Statistics and Programme Implementation (MoSPI). The Ministry's latest report for September 2020 reported that the original cumulative cost for the 1,663 projects was Rs 21.09 trillion. However, the anticipated cost of completion of the projects is probably going to be Rs 25.47 trillion. The overall cost overruns indicated by this is of Rs 4.37 trillion, which is more than 20 per cent of the initially calculated cost. However, the report said that if the delay is assessed based on the latest schedule of completion, the number of delayed projects reduces to 430. The report also mentioned that neither the tentative gestation period nor the year of commissioning was reported for 924 projects. Time overruns quantum. Of the 531 projects that have been delayed, 121 projects reflect a delay of 61 months and more; 160 projects show a delay of any duration between 25 to 60 months; 128 projects reflect a delay in the range of 13-24 months; while 122 projects show an overall delay from anywhere between 1-12 months. The average time overrun in all the 531 projects is 43.89 months. Several project-implementing agencies reported various reasons for the time overruns. The reasons varied from delay in acquiring environment and forest clearances, a delay in acquisition of land or even a lack of linkages and infrastructural support. The report mentioned tendering delays, delay in ordering and supplying of equipment, delay in finalisation of detailed engineering, delays in project financing tie-ups and issues with law and order as some of the other reasons. The report also stated that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time and cost overrun figures are under-reported.

Infrastructure Urban

07 Nov 2025

Welspun Enterprises Wins 910 MLD Panjrapur WTP Contract

Welspun Enterprises (WEL), the infrastructure and energy arm of Welspun World, has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to design, build and operate a 910 million litres per day (MLD) Water Treatment Plant (WTP) at Panjrapur, Maharashtra.Valued at approximately Rs 31.45 billion, the project encompasses end-to-end civil, mechanical, electrical and instrumentation works, including the construction of a treated water sump and pumping station. Of the total value, nearly Rs 11.56 billion is allocated to Operations & Maintenance (O&M), with an additional..

Infrastructure Energy

07 Nov 2025

Mitsubishi Power Wins Boiler Upgrade Contract for O Mon 1 Plant

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, (MHI), has been awarded a contract to support the oil-to-natural-gas fuel conversion at the O Mon 1 Thermal Power Plant in Can Tho, southern Vietnam. As the OEM of the plant’s existing boiler, Mitsubishi Power will supply key equipment—including new gas burners—and implement a selective catalytic reduction (SCR) system to reduce NOx emissions and help the plant meet stricter environmental standards.The O Mon 1 facility includes two 330 MW units that commenced operations in 2009 and 2015, with all major equipment or..

Equipment

07 Nov 2025

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..