458 infra projects affected by cost overrun of Rs 5.71 Tn
ECONOMY & POLICY

458 infra projects affected by cost overrun of Rs 5.71 Tn

According to an official assessment, in May of this year, there were 458 infrastructure projects with an investment of at least Rs 1.50 billion that had cost overruns of more than Rs 5.71 trillion. 458 out of 1,817 projects reported cost overruns, while 831 projects were delayed, according to the Ministry of Statistics and Programme Implementation (MoSPI), which keeps an eye on infrastructure projects of Rs 1.50 billion and above. 1,817 projects were initially estimated to have cost Rs 27 trillion in total to implement; it is expected that these projects will require an additional Rs 33 trillion to complete. The study states that the total amount spent on these projects up to May 2024 is Rs 17 trillion, or 51.3% of the projects' estimated total cost.

But if the delay is determined using the most recent completion timetable, the number of projects that are delayed dropped to 554, it said. Of the 831 projects that have been postponed, 245 have been delayed for a total of 1 to 12 months, 188 for 13 to 24 months, 271 for 25 to 60 months, and 127 for longer than 60 months. Among these 831 postponed projects, the average time overrun is 35.1 months. Various project implementing agencies have claimed that land acquisition, environmental clearance, financial challenges, contractual and internal issues, staffing shortages, and legal issues are among the reasons for time overruns.

According to an official assessment, in May of this year, there were 458 infrastructure projects with an investment of at least Rs 1.50 billion that had cost overruns of more than Rs 5.71 trillion. 458 out of 1,817 projects reported cost overruns, while 831 projects were delayed, according to the Ministry of Statistics and Programme Implementation (MoSPI), which keeps an eye on infrastructure projects of Rs 1.50 billion and above. 1,817 projects were initially estimated to have cost Rs 27 trillion in total to implement; it is expected that these projects will require an additional Rs 33 trillion to complete. The study states that the total amount spent on these projects up to May 2024 is Rs 17 trillion, or 51.3% of the projects' estimated total cost. But if the delay is determined using the most recent completion timetable, the number of projects that are delayed dropped to 554, it said. Of the 831 projects that have been postponed, 245 have been delayed for a total of 1 to 12 months, 188 for 13 to 24 months, 271 for 25 to 60 months, and 127 for longer than 60 months. Among these 831 postponed projects, the average time overrun is 35.1 months. Various project implementing agencies have claimed that land acquisition, environmental clearance, financial challenges, contractual and internal issues, staffing shortages, and legal issues are among the reasons for time overruns.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code