Infrastructure Project Price Overruns Climb to Six-Month High
ECONOMY & POLICY

Infrastructure Project Price Overruns Climb to Six-Month High

According to data released by the federal government, price overruns climbed to a six-month high in September, reversing the features made in the previous couple of months. In September, the predicted price of central infrastructure tasks was 21.92% more than the unique price, compared to 19.08% in August.

The federal government may seek to spend an additional Rs 4.5 lakh crore on projects costing Rs 150 crore or more, bringing the total investment to Rs 24.8 lakh crore. In addition, the completion time increased from 36.96 months to 38.63 months in comparison to the previous month. Though the number of delayed assignments decreased to 823 in September from 830 in August, 58% are currently delayed for more than two years.

In September, the federal government's monitoring portal considered 1,418 tasks, 12 of which were added from the previous month. In September, the federal government completed 46 missions. The report notes that 268 tasks had been on schedule, whereas 242 confronted price and time overruns.Nevertheless, it highlights that this may occasionally not current the precise image on the bottom, as not all businesses could also be reporting or offering checklist of milestones.

?The involved administrative Ministry might prefer to assessment the tasks with a view to keep away from additional price overrun, time overruns, to agency up milestones in case of milestone will not be accessible, to agency up revised price estimates and revised commissioning schedule if the identical has been not revised and lapsed,? the report acknowledged.

Railways was one of the ministries experiencing the greatest price overruns, with estimated costs in 173 tasks being 68.1% more than the original cost. The 41 jobs of the Ministry of Water Resources saw 195.6% cost overruns, whereas highways, which accounted for over half of all tasks monitored under the system, only 4.3% cost overruns.

Northeastern states had the lowest price overruns, followed by Andhra Pradesh.

According to data released by the federal government, price overruns climbed to a six-month high in September, reversing the features made in the previous couple of months. In September, the predicted price of central infrastructure tasks was 21.92% more than the unique price, compared to 19.08% in August. The federal government may seek to spend an additional Rs 4.5 lakh crore on projects costing Rs 150 crore or more, bringing the total investment to Rs 24.8 lakh crore. In addition, the completion time increased from 36.96 months to 38.63 months in comparison to the previous month. Though the number of delayed assignments decreased to 823 in September from 830 in August, 58% are currently delayed for more than two years. In September, the federal government's monitoring portal considered 1,418 tasks, 12 of which were added from the previous month. In September, the federal government completed 46 missions. The report notes that 268 tasks had been on schedule, whereas 242 confronted price and time overruns.Nevertheless, it highlights that this may occasionally not current the precise image on the bottom, as not all businesses could also be reporting or offering checklist of milestones. ?The involved administrative Ministry might prefer to assessment the tasks with a view to keep away from additional price overrun, time overruns, to agency up milestones in case of milestone will not be accessible, to agency up revised price estimates and revised commissioning schedule if the identical has been not revised and lapsed,? the report acknowledged. Railways was one of the ministries experiencing the greatest price overruns, with estimated costs in 173 tasks being 68.1% more than the original cost. The 41 jobs of the Ministry of Water Resources saw 195.6% cost overruns, whereas highways, which accounted for over half of all tasks monitored under the system, only 4.3% cost overruns. Northeastern states had the lowest price overruns, followed by Andhra Pradesh.

Next Story
Technology

HCL-Foxconn to invest Rs 37 billion in chip plant near Jewar airport

The Union Cabinet has approved the establishment of a new semiconductor unit near Jewar airport in Uttar Pradesh under the India Semiconductor Mission. This sixth plant, a joint venture between HCL and Foxconn, marks further progress in India’s semiconductor journey. The project will see an investment of Rs 37 billion.The facility will produce display driver chips for mobile phones, laptops, automobiles, PCs, and other digital devices. It is designed for a monthly capacity of 20,000 wafers and an output of 36 million units.Five semiconductor units are already in advanced stages of constructi..

Next Story
Real Estate

Brigade acquires Velachery land for Rs 16-billion project

Brigade Enterprises has acquired a 5.41-acre land parcel on Velachery Road, Chennai, through an outright purchase for Rs 4.417 billion. Located next to Phoenix Market City, the site will be developed into a premium residential project with a gross development value of approximately Rs 16 billion and a development potential of 0.8 million square feet.The project offers strategic access to both the OMR IT Corridor and Chennai’s Central Business District, promising strong connectivity and premium lifestyle offerings. Brigade plans to create signature residences focused on aesthetics, functional..

Next Story
Equipment

Liebherr marks 10,000th XPower wheel loader milestone

Liebherr-Werk Bischofshofen has rolled out its 10,000th XPower wheel loader, marking a major production milestone. The anniversary L 580 XPower model, featuring a power-split travel drive developed with ZF Friedrichshafen AG, was handed over to the BERGER Group in Passau.“The transmission from our partner ZF is a key component of the drivetrain in our XPower wheel loaders,” said Gerhard Pirnbacher, Head of Quality Management at Liebherr. “With an impressive total of around 64 million operating hours already clocked up by XPower models, this transmission has proven its exceptional robustn..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?