Projects in Railways, Roads, Power, Urban Development facing a lag

02 Jan 2019 Editorial Team

The September 2018 Flash Report clearly indicates these numbers with time and cost overruns compared to the original schedule. The report also analyses sectoral delays with projects amounting to Rs 1.50 billion and above.

In case of the railways, the total original cost of implementation of 375 projects when sanctioned was Rs 4,783.59 billion but this subsequently increased to Rs 7,253.43 billion, implying a staggering cost overrun of 51.6 per cent.

The expenditure incurred on these projects till September 2018 is Rs 1,723.61 billion, which is 23.8 per cent of the anticipated project cost. Some major projects that faced delay and cost overruns included the Western Dedicated Freight Corridor. The project, worth Rs 165 billion, which commenced in 2007 is now facing an additional cost overrun of Rs 345 billion. The current project cost is around Rs 511 billion. Similarly, the Eastern Dedicated Freight Corridor Project, which was inaugurated with much fanfare in 2006, is facing an additional cost overrun of Rs 165 billion from its original cost of Rs 115.89 billion. The total cost of the project is Rs 281.81 billion.

Over the years, the power sector witnessed an overall cost overrun of 21.3 per cent to Rs 3,725.25 billion as against the original cost of Rs 3,072.23 billion for 105 projects. The expenditure incurred on these projects till September 2018 is Rs 2,345.28 billion, which is 63 per cent of the anticipated project cost. By far, the power sector has seen the maximum cost incurred on projects (percentage-wise) as against other sectors.

In the roads sector, out of 574 projects, two projects are ahead of schedule, 81 projects are on schedule and 90 projects are delayed. Surprisingly, 368 projects do not have fixed dates of commissioning and 33 projects were sanctioned without any commissioning date but subsequently dates of completion were finalised. The total original cost of implementation of 574 projects when sanctioned was around Rs 3,869.25 billion, but this was increased to Rs 4,011.59 billion implying a cost overrun of 3.7 per cent. The expenditure incurred on these projects till September 2018 is Rs 1,326.43 billion, which is 33 per cent of the anticipated cost of the projects.

Urban development, too, was privy to project delays and cost overruns. The total original cost of implementation of 61 projects, when sanctioned, was Rs 1, 717.44 billion, but this was subsequently increased to Rs 1,794.53 billion, implying a cost overrun of 4.5 per cent.

The expenditure incurred on these projects till September 2018 is Rs 736 billion, which is 41 per cent of the anticipated cost of the projects.

SHRIYAL SETHUMADHAVAN and RAHUL KAMAT

Of a total of 371 projects – each amounting to Rs 10 billion or more – delayed across four sectors, the railways takes the lead with 174 delayed projects, followed by road transport and highways at 127 projects; power at 56; and urban development at 14 projects. The September 2018 Flash Report clearly indicates these numbers with time and cost overruns compared to the original schedule. The report also analyses sectoral delays with projects amounting to Rs 1.50 billion and above. In case of the railways, the total original cost of implementation of 375 projects when sanctioned was Rs 4,783.59 billion but this subsequently increased to Rs 7,253.43 billion, implying a staggering cost overrun of 51.6 per cent. The expenditure incurred on these projects till September 2018 is Rs 1,723.61 billion, which is 23.8 per cent of the anticipated project cost. Some major projects that faced delay and cost overruns included the Western Dedicated Freight Corridor. The project, worth Rs 165 billion, which commenced in 2007 is now facing an additional cost overrun of Rs 345 billion. The current project cost is around Rs 511 billion. Similarly, the Eastern Dedicated Freight Corridor Project, which was inaugurated with much fanfare in 2006, is facing an additional cost overrun of Rs 165 billion from its original cost of Rs 115.89 billion. The total cost of the project is Rs 281.81 billion. Over the years, the power sector witnessed an overall cost overrun of 21.3 per cent to Rs 3,725.25 billion as against the original cost of Rs 3,072.23 billion for 105 projects. The expenditure incurred on these projects till September 2018 is Rs 2,345.28 billion, which is 63 per cent of the anticipated project cost. By far, the power sector has seen the maximum cost incurred on projects (percentage-wise) as against other sectors. In the roads sector, out of 574 projects, two projects are ahead of schedule, 81 projects are on schedule and 90 projects are delayed. Surprisingly, 368 projects do not have fixed dates of commissioning and 33 projects were sanctioned without any commissioning date but subsequently dates of completion were finalised. The total original cost of implementation of 574 projects when sanctioned was around Rs 3,869.25 billion, but this was increased to Rs 4,011.59 billion implying a cost overrun of 3.7 per cent. The expenditure incurred on these projects till September 2018 is Rs 1,326.43 billion, which is 33 per cent of the anticipated cost of the projects. Urban development, too, was privy to project delays and cost overruns. The total original cost of implementation of 61 projects, when sanctioned, was Rs 1, 717.44 billion, but this was subsequently increased to Rs 1,794.53 billion, implying a cost overrun of 4.5 per cent. The expenditure incurred on these projects till September 2018 is Rs 736 billion, which is 41 per cent of the anticipated cost of the projects. SHRIYAL SETHUMADHAVAN and RAHUL KAMAT

Infrastructure Transport

11 May 2026

Shivraj Chouhan Launches PMGSY IV and Announces Package for Madhya Pradesh

Union Minister Shivraj Singh Chouhan launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) IV at Bhairunda in Sehore district during the 25 year celebrations and announced a development package for Madhya Pradesh. The programme was organised by the Union Ministry of Rural Development and attended by Chief Minister Dr Mohan Yadav, ministers of state, state ministers, legislators and senior officials from the centre and the state. The minister said the central government under the Prime Minister is committed to strengthening rural livelihoods through improved connectivity, housing and women's in..

Infrastructure Urban

11 May 2026

DMR Engineering Reports FY 25-26 Financial Results

DMR Engineering reported its half year results for the financial year ended 31 March 2026 and published full year figures on a standalone basis. Standalone revenue from operations decreased by 2.01 per cent year-over-year to Rs 102.58 million (mn), while profit after tax declined by 43.94 per cent to nine point five six mn, leaving a profit after tax margin of nine point zero five per cent. Earnings per share stood at Rs zero point nine two, a fall of 44.71 per cent year-over-year. The company attributed part of the decline to one-off provisioning for bad debts and additional financing charges..

Infrastructure Urban

11 May 2026

Atlanta Electricals Posts Strong FY26 Growth And Debt Free Finish

Atlanta Electricals reported audited consolidated results for the quarter and year ended 31 March 2026. The company recorded significant year-on-year revenue growth driven by capacity ramp-up at new facilities and higher utilisation at legacy plants. The announcement summarised operating improvements and strategic milestones achieved during the year. For Q4 the company reported revenue of Rs 7.48 bn and for FY26 revenue of Rs 18.52 bn, representing robust growth versus the prior year. EBITDA in Q4 was Rs. 1.49 bn and Rs. 3.44 bn for the full year, with margins expanding to 20 per cent in the q..