349 Infrastructure Projects Show Cost Overrun Of Rs 2 Lakh Crore
As many as 349 infrastructure projects, each worth Rs 150 crore and above, have shown cost overruns to the tune of Rs 2 lakh crore owing to delays and other reasons, a government report has said.
The Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs 150 crore and above.
“Total original cost of implementation of the 1,283 projects was Rs 15,58,352.33 crore and their anticipated completion cost is likely to be Rs 17,59,443.87 crore,which reflects overall cost overruns of Rs 2,01,091.54 crore (12.90 percent of original cost),” said the ministry's latest flash report for October 2017.
Of these 1,283 projects in question, 349 reported cost overruns and 302 time escalation.
According to the report, the expenditure incurred on these projects till October 2017 was Rs 6,59,009.46 crore, which is 37.46 percent of the anticipated cost.
“Out of total 1,283 projects, 12 projects have reported completion and 34 new projects have been initiated on the monitor of this ministry during the current month. Of these, 13 projects are ahead of schedule, 317 are on schedule, 302 are delayed, 349 projects are showing cost overruns and 105 projects are showing both time and cost overruns with respect to original implementation schedules,” the report said.
However, it stated that the number of delayed projects decreases to 258 if the delay is calculated with reference to latest revised schedules of completion.
For 651 projects, where original or anticipated commissioning date has not been reported, all concerned have been requested to provide the original/anticipated commissioning date so that these projects can be monitored for completion vis-a-vis targeted dates, it said.
It noted that out of 302 delayed projects, 49 projects have overall delay in the range of 1 to 12 months, 66 projects (13 to 24 months), 108 projects (25 to 60 months) and 79 projects (61 months and above).
The report attributes the time overrun to a host of issues, including delay in land acquisition, forest clearance, supply of equipment, funds constraints, Maoist incursion, legal cases and law and order situation.
Also Read: Union Budget 2018: Jaitley Gives Infrastructure A Push
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