+
443 infra projects hits cost overruns of Rs 4.45 lakh crore: Report
ECONOMY & POLICY

443 infra projects hits cost overruns of Rs 4.45 lakh crore: Report

A government report revealed that 443 infrastructure projects, with the cost of investment of over Rs 150 crore, have been hit by cost overruns totalling over Rs 4.45 lakh crore.

The Ministry of Statistics and Programme Implementation (MOSPI) monitors infrastructure projects of Rs 150 crore and above.

As per the report, till January 2022, expenditure incurred on these projects stood at Rs 13,16,293.63 crore or 48.76% of the estimated project cost.

From 1,671 such projects, 514 projects were delayed, and 443 reported cost overruns.

However, the number of delayed projects reduces to 381, based on the latest completion schedule.

Moreover, for 881 projects, neither the year of commissioning nor the tentative gestation period has been declared.

Out of the 514 delayed projects, 89 have a total delay of one to two months, 113 are delayed for 13-24 months, 204 for 25-60 months, and 108 projects have been delayed for over 61 months.

Overall estimated time overrun in these 514 delayed projects is 46.23 months.

Various agencies executing these projects notified reasons for time overrun, such as delay in land acquisition, delay in getting environment approvals, and shortage of infrastructure linkages and support.

Additional reasons include finalisation detail engineering delay, change in scope, law and order issues, and many other reasons.

According to the report, the state-wise lockdown due to the Covid-19 pandemic was one of the reasons for the delay.

It also mentioned that project agencies are not reporting revised cost estimates and schedule commissioning for various projects, which shows that time/cost overrun figures are under-reported.

Image Source

Also read: 445 infra projects hits cost overrun of Rs 4.4 lakh crore

A government report revealed that 443 infrastructure projects, with the cost of investment of over Rs 150 crore, have been hit by cost overruns totalling over Rs 4.45 lakh crore. The Ministry of Statistics and Programme Implementation (MOSPI) monitors infrastructure projects of Rs 150 crore and above. As per the report, till January 2022, expenditure incurred on these projects stood at Rs 13,16,293.63 crore or 48.76% of the estimated project cost. From 1,671 such projects, 514 projects were delayed, and 443 reported cost overruns. However, the number of delayed projects reduces to 381, based on the latest completion schedule. Moreover, for 881 projects, neither the year of commissioning nor the tentative gestation period has been declared. Out of the 514 delayed projects, 89 have a total delay of one to two months, 113 are delayed for 13-24 months, 204 for 25-60 months, and 108 projects have been delayed for over 61 months. Overall estimated time overrun in these 514 delayed projects is 46.23 months. Various agencies executing these projects notified reasons for time overrun, such as delay in land acquisition, delay in getting environment approvals, and shortage of infrastructure linkages and support. Additional reasons include finalisation detail engineering delay, change in scope, law and order issues, and many other reasons. According to the report, the state-wise lockdown due to the Covid-19 pandemic was one of the reasons for the delay. It also mentioned that project agencies are not reporting revised cost estimates and schedule commissioning for various projects, which shows that time/cost overrun figures are under-reported. Image Source Also read: 445 infra projects hits cost overrun of Rs 4.4 lakh crore

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Assam Gets Approval For 350,000 PMAY Homes

Assam Chief Minister Himanta Biswa Sarma met Union Agriculture Minister Shivraj Singh Chouhan in New Delhi, where the minister handed an approval document for 310,000 new homes under the Pradhan Mantri Awas Yojana. The chief minister subsequently posted on X expressing gratitude and noting that the minister had formally handed approval for 380,000 homes as well. The release and the social media post contained varying figures, with broader references to 350,000 homes reported in some summaries. The approvals carry central assistance equivalent to Rs 50 billion (bn), corresponding to the five th..

Next Story
Infrastructure Urban

KPIGreen Achieves Highest Energised Capacity of 630+ MW DC

KPI Green Energy energised more than 630 MW DC of capacity in the June to August quarter, marking the highest quarterly addition in the company's history. The capacity was brought online across its Independent Power Producer (IPP) and Engineering, Procurement and Construction (EPC) businesses. The company said the achievement reflected the scale, speed and consistency of its project execution engine. The firm described the quarter as a material operational milestone since its founding. The milestone covers a diversified mix of IPP assets and projects executed under the EPC vertical, spanning u..

Next Story
Infrastructure Energy

Adani Energy Solutions Wins Rs 47 bn Maharashtra Transmission Project

Adani Energy Solutions has won a transmission contract in Maharashtra valued at Rs 47 billion (Rs 47 bn) to evacuate 4,500 megawatt (MW) of renewable and storage power. The company informed exchanges that the project will facilitate pumped storage potential near Satara and strengthen the inter-regional corridor between the Western and Southern grids. The award follows a competitive bidding process and will support renewable energy evacuation to major load centres in the state. The scope includes establishment of a 765/400 kV substation at Satara, construction of a Kolhapur-Satara 765 kV double..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code