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

24 Nov 2022 CW Team

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.

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