+
445 infra projects hits cost overrun of Rs 4.4 lakh crore
ECONOMY & POLICY

445 infra projects hits cost overrun of Rs 4.4 lakh crore

According to a report, 445 infrastructure projects with an investment of Rs 150 crore each have been hit by cost overruns of over Rs 4.4 lakh crore.

The Ministry of Statistics and Programme Implementation looks into the infrastructure projects of Rs 150 crore or more. Of 1,673 projects, 445 faced cost overruns, and 557 projects were delayed.

The Ministry said that the initial implementation cost of these projects was Rs 22,23,791.78 crore, and their anticipated cost is likely to be Rs 26,64,649.18 crore, with Rs 4,40,857.40 crore cost overruns.

As per the report, the expenditure incurred on these infrastructure projects is Rs 13,08,766.65 crore, which is 49.12% of the anticipated cost of the projects.

The number of delayed projects dropped to 420 if the delay is counted based on the latest schedule of completion.

As many as 838 projects have not been given the year of commissioning nor the tentative gestation period.

From the 557 delayed projects, 97 projects have an overall delay between 1-12 months, 127 projects have been delayed for 13-24 months, 217 projects for 25-60 months and 116 projects for 61 months or more. The average time overrun in these projects is 45.69 months.

Time overruns were due to the issue of land acquisition, delay in forest and environment clearances, lack of infrastructure support and linkages. Other reasons include project financing, delay in finalising detailed engineering, change in scope, delay in the tendering process, ordering and equipment supply, law and order problems and Covid-19 restrictions and state-wise lockdowns.

Image Source

Also read: China to rollout infra projects to combat economic slowdown

Also read: BRO develops Project Yojak in Himachal Pradesh to boost road infra

According to a report, 445 infrastructure projects with an investment of Rs 150 crore each have been hit by cost overruns of over Rs 4.4 lakh crore. The Ministry of Statistics and Programme Implementation looks into the infrastructure projects of Rs 150 crore or more. Of 1,673 projects, 445 faced cost overruns, and 557 projects were delayed. The Ministry said that the initial implementation cost of these projects was Rs 22,23,791.78 crore, and their anticipated cost is likely to be Rs 26,64,649.18 crore, with Rs 4,40,857.40 crore cost overruns. As per the report, the expenditure incurred on these infrastructure projects is Rs 13,08,766.65 crore, which is 49.12% of the anticipated cost of the projects. The number of delayed projects dropped to 420 if the delay is counted based on the latest schedule of completion. As many as 838 projects have not been given the year of commissioning nor the tentative gestation period. From the 557 delayed projects, 97 projects have an overall delay between 1-12 months, 127 projects have been delayed for 13-24 months, 217 projects for 25-60 months and 116 projects for 61 months or more. The average time overrun in these projects is 45.69 months. Time overruns were due to the issue of land acquisition, delay in forest and environment clearances, lack of infrastructure support and linkages. Other reasons include project financing, delay in finalising detailed engineering, change in scope, delay in the tendering process, ordering and equipment supply, law and order problems and Covid-19 restrictions and state-wise lockdowns. Image Source Also read: China to rollout infra projects to combat economic slowdown Also read: BRO develops Project Yojak in Himachal Pradesh to boost road infra

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code