Around 438 infra projects show cost overruns of Rs 4.3 lakh cr

27 Oct 2021 CW Team

According to a report, about 438 infrastructure projects of over Rs 150 crore have been hit by cost overruns of over Rs 4.3 lakh crore. The Ministry of Statistics and Programme monitors projects worth Rs 150 crore or more.

From the total 1,670 infrastructure projects, 438 witnessed cost overruns, and 563 were delayed projects.

The Ministry said that the initial cost of implementation of 1,670 projects was Rs 21,66,048.11 crore, and their anticipation completion cost is expected to be Rs 25,96,907.70 crore, which reflects an overall cost overrun of Rs 4,30,859.59 crore, almost 20% of the original cost.

The overall expenditure incurred on these infrastructure projects till September is Rs 12,54,512.40 crore, which is 48.31% of the anticipated cost, said the report.

The report said that the delayed projects have decreased to 380 if the delay is calculated based on the latest completion schedule.

For 808 projects, neither the year of commissioning nor the tentative gestation period has been witnessed.

From the total delayed projects, 100 projects were delayed between 1-12 months, 120 for 13-24 months, 216 for 25-60 months, and 127 projects for 61 months or more.

The average time of cost overrun for delayed projects is 47 months.

According to the agencies, the cost overrun may be due to delayed land acquisition, getting forest and environmental clearances, and lack of infrastructure support and linkage.

Delay in project financing, finalisation in detailed engineering works, delay in tendering, change in scope of work, ordering and equipment supply, and other legal issues are other reasons for the delay.

As per the report, Covid-19 lockdowns were also a reason for the delay in project implementation.

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Also read: 470 infra projects show cost overruns worth Rs 4.38 lakh cr

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