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379 Infrastructure Projects Hit by Cost Overruns
ECONOMY & POLICY

379 Infrastructure Projects Hit by Cost Overruns

An official analysis stated that as many as 379 infrastructure projects, each requiring an expenditure of at least Rs 1.5 billion, have been affected by cost overruns of more than Rs 4.64 lakh crore as of April 2023.

Out of 1,605 projects, 379 reported cost overruns and up to 800 projects were delayed, according to the Ministry of Statistics and Programme Implementation, which oversees infrastructure projects worth Rs 1.5 billion and above.

"Total original cost of implementation of the 1,605 projects was Rs 22,85,674.25 crore and their anticipated completion cost is likely to be Rs 27,50,591.38 crore, which reflects overall cost overruns of Rs 4,64,917.13 crore (20.34 per cent of original cost)," the ministry's latest report for April 2023 said.

The study states that the amount spent on these projects up till April 2023 was 51.39 percent of the projects' estimated cost. On the basis of the most recent completion schedule, it was announced that the number of projects with delays drops to 598. Additionally, it noted that neither the tentative gestation length nor the commissioning year for 413 projects had been published.

Out of the 800 projects that have been postponed, 194 have total delays between one and twelve months, 175 have delays between three and four years, 306 have delays between five and sixty years, and 125 have delays of more than sixty years.

Further evidence that time/cost overrun figures are underreported comes from the fact that many project executing agencies fail to publish revised cost estimates and commissioning schedules.

See also:
Project cost for Versova-Bandra Sealink jumps by 60% to Rs 113.33 bn
Mumbai Metro 3 project cost rises by Rs 10,269.82 crore


An official analysis stated that as many as 379 infrastructure projects, each requiring an expenditure of at least Rs 1.5 billion, have been affected by cost overruns of more than Rs 4.64 lakh crore as of April 2023. Out of 1,605 projects, 379 reported cost overruns and up to 800 projects were delayed, according to the Ministry of Statistics and Programme Implementation, which oversees infrastructure projects worth Rs 1.5 billion and above. Total original cost of implementation of the 1,605 projects was Rs 22,85,674.25 crore and their anticipated completion cost is likely to be Rs 27,50,591.38 crore, which reflects overall cost overruns of Rs 4,64,917.13 crore (20.34 per cent of original cost), the ministry's latest report for April 2023 said. The study states that the amount spent on these projects up till April 2023 was 51.39 percent of the projects' estimated cost. On the basis of the most recent completion schedule, it was announced that the number of projects with delays drops to 598. Additionally, it noted that neither the tentative gestation length nor the commissioning year for 413 projects had been published. Out of the 800 projects that have been postponed, 194 have total delays between one and twelve months, 175 have delays between three and four years, 306 have delays between five and sixty years, and 125 have delays of more than sixty years. Further evidence that time/cost overrun figures are underreported comes from the fact that many project executing agencies fail to publish revised cost estimates and commissioning schedules. See also: Project cost for Versova-Bandra Sealink jumps by 60% to Rs 113.33 bnMumbai Metro 3 project cost rises by Rs 10,269.82 crore

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