However, the number of delayed projects decreases to 568 if the delay is calculated based on the most recent completion schedule. Photo: Bloomberg
As many as 443 infrastructure projects, each involving an investment of Rs 150 crore or more, were hit by a cost overrun of over Rs 4.92 trillion in February 2024, an official report said.
According to the Ministry of Statistics and Program Implementation (MoSPI), which monitors infrastructure projects worth Rs 150 crore and above, 443 out of 1,902 projects reported cost overruns and 764 projects were delayed.
“The total initial implementation cost of the 1,902 projects was Rs 27,08,030.44 crore, and their expected completion cost is likely to be Rs 32,00,507.55 crore, reflecting total cost overruns of Rs 4,92,477.11 crore (18.19 percent of the original cost). ),’ said the ministry’s latest report for February 2024.
According to the report, the expenditure on these projects till February 2024 is Rs 16,76,739 crore, which is 52.39 percent of the projected cost of the projects.
However, the number of delayed projects decreases to 568 if the delay is calculated based on the latest completion schedule, it added.
It further said that for 389 projects, neither the year of commissioning nor the preliminary gestation period has been reported.
Of the 764 delayed projects, 188 have a total delay of 1 to 12 months, 185 projects have a delay of 13 to 24 months, 275 projects have a delay of 25 to 60 months and 116 projects have a delay of more than 60 months.
The average time overrun on these 764 delayed projects is 36.27 months.
Reasons for time overruns, as reported by several project implementing agencies, include delays in land acquisition, forest and environmental clearances, and lack of infrastructure support and connectivity.
Delays in project financing, completion of detailed engineering, changes in scope, procurement, ordering and delivery of equipment, and public order issues are among other reasons.
The report also cited state-wise lockdowns due to COVID-19 (imposed in 2020 and 2021) as the reason for the delay in implementation of these projects.
It has also been observed that project implementing agencies are not reporting revised cost estimates and commissioning schedules for many projects, indicating that time and cost overrun figures are under-reported, it added.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: March 31, 2024 | 12:33 pm IST