343 infra projects witness estimated cost exceeding

24 Jan 2023 CW Team

Overruns of more than 4.5 Trillion have occurred in 343 infrastructure projects across the country. According to news agency PTI, each project requires an investment of more than 1500 million, and 835 projects have been delayed as a result of the overrun.

The total cost of carrying out the 1,438 projects was estimated to be Rs 20,35,794.75 billion. However, the project's completion cost is expected to be around Rs 24,86,069.52 billion, which is 22.12% higher than the original estimate, according to a December 2022 report cited by PTI. It was discovered that of the 835 projects that were delayed, 160 had overall delays ranging from 1 to 12 months, while 130 had delays of 61 months or more. The government has delayed 134 infrastructure projects for 13-24 months and 411 projects for 25-60 months. or 342 projects, neither the year of commissioning nor the estimated gestation period have been disclosed.

According to the implementing agencies, cost overruns were caused by a variety of factors, including delays in acquiring land and obtaining environmental and forest clearances. Other factors that contributed to the delays included the late submission of project financing documents, a change in scope, the equipment supply and tendering process, and law and order issues.

Furthermore, neither the year in which the project began nor its tentative timeline have been reported for 342 projects. The report also blamed the delays in project implementation on the implementation of COVID-19 lockdowns.

It was also reported that the companies in charge of the projects were failing to report revised cost estimates and project completion dates. This suggests that cost and time overrun figures are being underreported.

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