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Infrastructure Projects Delayed Due To Cost Overruns

Courtesy/By: Subhalagna Choudhury | 04 Sep 2018

There were as many as 343 infrastructure projects, each costing around 150 crores that have shown a cost overrun of 2.23 lakh crore due to delays and other reasons thereof. Infrastructure projects worth RS 150 Crore or more are handled by the Ministry of Statistics and Programme Implementation. The ministry noted that total original cost of implementation of the 1332 projects was RS 16,26,675 crore and their anticipated completion cost is likely to be 18,49,766 crore. This reflects an overall cost overruns of over 2 lakh crore. Of the 1332 projects 343 were cases of cost overruns and 253 of time escalation.

It is said that if the dealt and the risk therein is calculated, the number of delay projects decreases to 187. It is further reported that project agencies are not reporting the cost estimates that are revised and commissioning schedules. Out of 253 delayed projects 59 will have a delay of one to twelve months, 48 will have thirteen to twenty four months, 75 will have twenty five to sixty months, and seventy projects will have 61 months and above. The reasons for delay are, delay in forest clearance, delay in land acquisition, delay in supply of equipment, fund constraints.

Courtesy/By: Subhalagna Choudhury | 04 Sep 2018