October sees Rs 4.31 trillion overruns in 411 infra projects

21 Nov 2023 CW Team

In October of this year, 411 infrastructure projects, each requiring an investment of Rs 1.5 billion or more, experienced cost overruns exceeding Rs 4.31 trillion. The Ministry of Statistics and Programme Implementation, responsible for monitoring projects valued at Rs 1.5 billion and above, disclosed that out of a total of 1,788 projects, 411 encountered cost overruns, and 837 projects faced delays.

The report highlighted that the initial cost of implementing the 1,788 projects amounted to Rs 24 trillion. The projected completion cost is expected to reach Rs 29 trillion, indicating an overall cost overrun of Rs 4.31 trillion, which is equivalent to 17.39% of the original cost. As per the ministry's latest report for October 2023, it stated that the expenditure on these projects until October 2023 reached Rs 15.27 trillion, constituting 52.49 percent of the anticipated project cost. Nonetheless, the report specified that the number of delayed projects decreases to 628 if the delay is calculated based on the most recent schedule of completion.

Various project implementing agencies have cited several reasons for time overruns. These include delays in land acquisition, obtaining forest and environment clearances, and a lack of infrastructure support and linkages. Additionally, other factors contributing to delays encompass challenges in securing project financing, finalizing detailed engineering, changes in scope, delays in tendering, ordering, and equipment supply, as well as issues related to law and order.

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