These projects each entailing an investment of Rs 150 crore or above were hit by cost overrun of more than Rs 5.01 trillion, the official report stated.
Ministry of Statistics and Programme Implementation (photo:ANI)
A report by the Ministry of Statistics and Programme Implementation (MoSPI) stated that as many as 449 infrastructure projects were hit by cost overrun in March 2024.
These projects each entailing an investment of Rs 150 crore or above were hit by cost overrun of more than Rs 5.01 trillion, the official report stated.
Out of the 1,873 projects, 449 reported cost overrun and 779 projects were delayed, the report said.
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Notably, the Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs 150 crore and above.
The ministry’s latest report for March 2024 said the total original cost of implementation of the 1,873 projects was Rs 26,87,535.69 crore and their anticipated completion cost is likely to be Rs 31,88,859.02 crore, which reflects an overall cost overrun of Rs 5,01,323.33 crore (18.65% of the original cost).
The expenditure incurred on these projects till March 2024 is Rs 17,11,648.99 crore, which is 53.68 per cent of the anticipated cost of the projects.
However, the number of delayed projects decreased to 567, if the delay is calculated on the basis of the latest schedule of completion, it added.
Furthermore, it said that for 393 projects neither the year of commissioning nor the tentative gestation period has been reported. Out of the 779 delayed projects, 202 have overall delays in the range of 1-12 months, 181 have been delayed for 13-24 months, 277 projects for 25-60 months, and 119 projects have been delayed for more than 60 months. The average time overrun in these 779 delayed projects is 36.04 months.
The report highlighted the delays in tie-up for project financing, finalisation of detailed engineering, change in scope, tendering, ordering and equipment supply, and law and order problems, among other reasons.
Furthermore, the reasons for time overrun, as reported by various project implementing agencies, include delay in land acquisition, obtaining forest and environment clearances, and lack of infrastructure support and linkages.
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