Delays lead to cost overruns of Rs 4.58 trillion in 380 infra projects
ECONOMY & POLICY

Delays lead to cost overruns of Rs 4.58 trillion in 380 infra projects

As many as 380 infrastructure projects, each entailing an investment of Rs 1.5 billion or more, have been hit by cost overruns of more than Rs 4.58 trillion, as per a report. According to the Ministry of Statistics and Programme Implementation, which monitors infrastructure projects worth Rs 1.5 billion or more, 380 of 1,521 projects had cost overruns, and 642 were delayed.

Total original cost of implementation of the 1,521 projects was Rs 21.18 trillion and their anticipated completion cost is likely to be Rs 25.76 trillion, which reflects overall cost overruns of Rs 4.58 trillion (21.63 per cent of original cost), the ministry's latest report for October 2022 said.

According to the report, the expenditure on these projects up to October 2022 was Rs 13.90 trillion, or 53.95 percent of the projected cost.

However, if the number of delayed projects is calculated using the most recent completion schedule, the number of delayed projects drops to 513.

Furthermore, it revealed that neither the year of commissioning nor the tentative gestation period for 620 projects had been reported.

Also Read
Doosan rolls out next-gen, -7 Series wheel excavators
IRSEE officer Vinit Kumar takes over as KVIC chief exec

As many as 380 infrastructure projects, each entailing an investment of Rs 1.5 billion or more, have been hit by cost overruns of more than Rs 4.58 trillion, as per a report. According to the Ministry of Statistics and Programme Implementation, which monitors infrastructure projects worth Rs 1.5 billion or more, 380 of 1,521 projects had cost overruns, and 642 were delayed. Total original cost of implementation of the 1,521 projects was Rs 21.18 trillion and their anticipated completion cost is likely to be Rs 25.76 trillion, which reflects overall cost overruns of Rs 4.58 trillion (21.63 per cent of original cost), the ministry's latest report for October 2022 said. According to the report, the expenditure on these projects up to October 2022 was Rs 13.90 trillion, or 53.95 percent of the projected cost. However, if the number of delayed projects is calculated using the most recent completion schedule, the number of delayed projects drops to 513. Furthermore, it revealed that neither the year of commissioning nor the tentative gestation period for 620 projects had been reported. Also Read Doosan rolls out next-gen, -7 Series wheel excavators IRSEE officer Vinit Kumar takes over as KVIC chief exec

Next Story
Real Estate

Bennet & Bernard Unveil Dutch-Inspired ‘Casa El Toledo’ in Goa

Bennet & Bernard Group, Goa’s leading luxury real estate developer, has launched its newest project, Casa El Toledo, in Assagao. The enclave features 18 ultra-luxury 4 BHK Dutch-style villas blending European charm with tropical elegance. Each villa includes a private pool, double-height ceilings, open courtyards, alfresco dining areas, and English-inspired landscaping. The interiors are curated by noted Dutch designer Kelly Marie.   Reflecting the grandeur of the Dutch Golden Age, Casa El Toledo harmonises heritage aesthetics with modern sensibilities. Expansive interiors flow..

Next Story
Equipment

Godrej Delivers Heaviest Ecolaire Surface Condenser to US Project

Godrej Enterprises Group’s Process Equipment business has manufactured and delivered its heaviest Ecolaire® Surface Condenser to date, weighing nearly 450 metric tonnes, for a power-generation project in the United States. The project, powered by natural gas and partly designed for hydrogen compatibility, marks another step in advancing clean energy systems. Produced at the company’s GreenCo-certified Dahej facility in Gujarat, the equipment demonstrates India’s growing engineering capabilities and reinforces Godrej’s ‘Make in India for the World’ vision.  Hussain S..

Next Story
Infrastructure Energy

India, Brazil Discuss Energy Ties And Oil Investments

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri held discussions with Celso Luis Nunes Amorim, Special Advisor to the President of Brazil, and senior Brazilian officials to strengthen bilateral cooperation in the oil, gas, and energy transition sectors. The talks took place during a dinner hosted by Kenneth H da Nobrega, Ambassador of Brazil to India, at his residence in New Delhi.Mr Puri said the meeting focused on Indian investments in Brazil’s oil and gas sector, as well as expanding collaboration in energy transition and biofuels. “The enriching conversation revolved ar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?