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Home Business 448 infra projects show cost overruns worth Rs 4.02 lakh crore

448 infra projects show cost overruns worth Rs 4.02 lakh crore

As many as 448 infrastructure projects, every worth Rs 150 crore or extra, have been hit by cost overruns totalling greater than Rs 4.02 lakh crore, in line with a report. The Ministry of Statistics and Programme Implementation screens infrastructure projects worth Rs 150 crore and above. Of the 1,739 such projects, 448 reported cost overruns and 539 had been delayed. “Total original cost of implementation of the 1,739 projects was Rs 22,18,210.29 crore and their anticipated completion cost is likely to be Rs 26,20,618.44 crore, which reflects overall cost overruns of Rs 4,02,408.15 crore (18.14 per cent of original cost),” the ministry’s newest report for January 2021 mentioned.

The expenditure incurred on these projects until January 2021 is Rs 12,29,517.04 crore, which is 46.92 per cent of the anticipated cost of the projects. However, the report mentioned the variety of delayed projects decreased to 401 if delay is calculated on the idea of newest schedule of completion. Further, for 941 projects neither the 12 months of commissioning nor the tentative gestation interval has been reported.

Out of 539 delayed projects, 106 projects have general delays within the vary of 1-12 months, 131 projects have delays of 13-24 months, 187 projects replicate delays within the vary of 25-60 months and 115 projects show delays of 61 months and above. The common time overrun in these 539 delayed projects is 44.65 months.

Reasons for time overruns as reported by varied undertaking implementing businesses embody delay in land acquisition, delay in acquiring forest and atmosphere clearances, and lack of infrastructure help and linkages. Delay in tie-up for undertaking financing, delay in finalisation of detailed engineering, change in scope, delay in tendering, ordering and tools provide, and legislation and order issues, amongst others, are the opposite causes, the report mentioned.

The report additionally cited ‘state-wise lockdown resulting from COVID-19’ as a purpose for delay in implementation of those projects. It has additionally been noticed that undertaking businesses should not reporting revised cost estimates and commissioning schedules for a lot of projects, which suggests that point/cost overrun figures are underreported, it added.

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