Over 400 Mumbai infra projects hit by cost and time overruns

29 Dec 2020 Editorial Team

As many as 442 infrastructure projects in Mumbai, each worth Rs 150 crore or more, have taken a hit due to cost overruns of more than Rs 4.34 lakh crore.

All infrastructure projects that are worth Rs 150 crore or more are monitored by the Ministry of Statistics and Programme Implementation. Of a total of 1,671 projects, nearly 442 witnessed cost overruns and 536 have suffered postponement.

The total original cost of implementation of nearly 1,671 projects was calculated as Rs 21.21 lakh crore. The expected completion cost is Rs 25.56 lakh crore. It reflects the overall cost overruns of nearly Rs 4.34 lakh crore. It is 20.49% of its original cost.

During November 2020, the expenditure incurred on these projects was Rs 11.94 lakh crore, which is 46.71% of the anticipated costs.

If a delay is calculated based on the latest schedule of completion, then the number of delayed projects gets reduced to 412. For 942 projects, neither the year of commissioning nor the tentative gestation period has been reported.

Of 536 delayed projects, close to 120 have an overall delta of 1-12 months. Whereas, 13 projects are likely to see 13-24 months. Also, 162 indicate delay for 25-60 months and nearly 120 reflect a delay of 61 months and more. Hence, the average time overrun for 536 delayed projects is 44.15 months.

The reasons behind the time overruns:

Delay in tie-up for project financing
Delays in finalisation of detailed engineering
Change in scope
Delay in tendering
Ordering and equipment supply
Law and order issues
Delays in land acquisition
Delays in obtaining forest and environmental clearances
Lockdown in various states in the country

Various project agencies have not reported revisited cost estimates and commissioning schedules for projects. It indicates the time and cost overrun figures to be under-reported.

Image Source

As many as 442 infrastructure projects in Mumbai, each worth Rs 150 crore or more, have taken a hit due to cost overruns of more than Rs 4.34 lakh crore. All infrastructure projects that are worth Rs 150 crore or more are monitored by the Ministry of Statistics and Programme Implementation. Of a total of 1,671 projects, nearly 442 witnessed cost overruns and 536 have suffered postponement. The total original cost of implementation of nearly 1,671 projects was calculated as Rs 21.21 lakh crore. The expected completion cost is Rs 25.56 lakh crore. It reflects the overall cost overruns of nearly Rs 4.34 lakh crore. It is 20.49% of its original cost. During November 2020, the expenditure incurred on these projects was Rs 11.94 lakh crore, which is 46.71% of the anticipated costs. If a delay is calculated based on the latest schedule of completion, then the number of delayed projects gets reduced to 412. For 942 projects, neither the year of commissioning nor the tentative gestation period has been reported. Of 536 delayed projects, close to 120 have an overall delta of 1-12 months. Whereas, 13 projects are likely to see 13-24 months. Also, 162 indicate delay for 25-60 months and nearly 120 reflect a delay of 61 months and more. Hence, the average time overrun for 536 delayed projects is 44.15 months. The reasons behind the time overruns: Delay in tie-up for project financing Delays in finalisation of detailed engineering Change in scope Delay in tendering Ordering and equipment supply Law and order issues Delays in land acquisition Delays in obtaining forest and environmental clearances Lockdown in various states in the country Various project agencies have not reported revisited cost estimates and commissioning schedules for projects. It indicates the time and cost overrun figures to be under-reported. Image Source

Infrastructure Energy

22 Oct 2025

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Infrastructure Urban

22 Oct 2025

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Infrastructure Energy

22 Oct 2025

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..