About 431 infrastructure projects were affected by cost overruns of over Rs 4.80 lakh crore in January 2024, an official report from the Ministry of Statistics and Programme Implementation (MoSPI) revealed. The report found that out of 1,821 projects, 431 stated cost overrun and each of the delayed projects included an investment of Rs 150 crore or above. About 780 projects were found to be delayed in the report.
The ministry oversees infrastructure projects including investments above Rs 150 crore, reported PTI. The original implementation cost of the 1,821 projects stood at Rs 26,09,679.38 crore, while the expected completion cost for the same stands around Rs 30,90,135.99 crore, marking an overall cost overrun of Rs 4,80,456.61 crore, the ministry said in its latest report for January 2024. These cost estimates stood higher by 18.41 per cent compared to the original costs.
The report also noted that expenditure for the projects till January 2024 stood at Rs 16,43,821.69 crore, representing about 53.20 per cent of the expected project costs. However, the ministry found that on calculating the delay on the basis of the latest completion schedule, the delayed projects decrease to 583.
For about 373 projects, the study found that the commissioning year along with the tentative gestation period remained unreported. From the 780 delayed projects, about 194 included overall delays in the range of 1-12 months, 187 projects were delayed for 13-24 months, 284 projects cited delays of 25-60 months, and 115 projects included delays of over 60 months. The average time overrun for the projects stood at 36.13 months.
Amongst the reasons cited for the delays, the report mentioned a delay in land acquisition, getting forest and environment clearances, and inadequate infrastructure support and linkages as the major factors explained by several project implementation agencies. Other factors like delays in tie-up for project financing, finalising detailed engineering, revisions in scope, tendering, equipment supply, and order, and law and order issues were also cited as responsible for the overruns.
The report further noted that state-wise lockdowns owing to the COVID-19 pandemic also caused a delay in project implementation.
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