As many as 442
infrastructure projects, each worth Rs 150 crore or more, have been hit by cost
overruns of over Rs 4.34 trillion.
As many as 442 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns of over Rs 4.34 lakh crore, according to a report.
The Ministry of Statistics
and Programme Implementation monitors infrastructure
projects worth Rs 150 crore and above.
Of the 1,671 such projects,
442 reported cost overruns and 536 time escalation.
"Total original cost
of implementation of the 1,671 projects was Rs 21,21,383.82 crore and their
anticipated completion cost is likely to be Rs 25,55,957.52 crore, which
reflects overall cost overruns of Rs 4,34,573.70 crore (20.49 per cent of
original cost)," the ministry's latest report for November 2020 said.
The expenditure incurred on
these projects till November 2020 is Rs 11,93,997.81 crore, which is 46.71 per
cent of the anticipated cost of the projects.
However, it said that the
number of delayed projects decreases to 412 if delay is calculated on the basis
of latest schedule of completion.
Further, the report said
that for 942 projects neither the year of commissioning nor the tentative
gestation period has been reported.
Out of 536 delayed
projects, 120 projects have overall delay in the range of 1-12 months, 134
projects have delay of 13-24 months, 162 projects reflect delay in the range of
25-60 months and 120 projects show delays of 61 months and above.
The average time overrun in
these 536 delayed projects is 44.15 months.
Reasons for time overruns
as reported by various project implementing agencies include delay in land
acquisition, delay in obtaining forest and environment clearances, and lack of
infrastructure support and linkages.
Delay in tie-up for project
financing; delay in finalisation of detailed engineering; change in scope;
delay in tendering, ordering and equipment supply; and law and order problems,
among others, are the other reasons, the report said.
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