Cost, time overruns of infra projects rising
Number of delayed projects rises to 56.7% in Dec qtr from 34.23% in previous corresponding qtr; As many as 821 (56.65%) out of 1,449 projects incurred cost overruns
Cost, time overruns of infra projects rising
The total original cost of implementation of the 1,449 projects was Rs2,069,658.3 crore, but the recently anticipated completion cost is Rs2,525,348.87 crore. That is, the overall cost overruns are of Rs455,690.57 cr
New Delhi: The Narendra Modi-led government is spending a lot of money and effort on infrastructure development. The total capital expenditure 2023-24, including that by States, is Rs13.5 lakh crore. However, the situation has deteriorated in terms of cost and time overruns in the last one- and-a-half years, official sources told Bizz Buzz.
An official study on infrastructure projects worth Rs150 crore and more found that the number of delayed projects went up from 34.23 per cent in the quarter ending December 2021 to 56.7 per cent in the quarter ending December 2022. Worse, little improvement was seen in March this year, with 821 out of 1,449 projects, or 56.65 per cent, having incurred cost overruns.
The graph went up continuously except for a dip—41.27 per cent in January-March 2022, 45.56 per cent in April-June 2022 and 42.5 per cent in July-September 2022.
There was a similar increase in estimated expenditure, from 19.42 per cent in the quarter ending December 2021 to 21.42 per cent in the quarter ending December 2022. In March, it went up to 22.02 per cent.
The total original cost of implementation of the 1,449 projects was Rs2,069,658.3 crore, but the recently anticipated completion cost is Rs2,525,348.87 crore. That is, the overall cost overruns are of Rs455,690.57 crore.
Of the 821 delayed projects, 193 projects have delays in the range of one month to 12 months, 177 in 13 to 24 months, 325 in 25 to 60 months, and 129 projects of delays of more than 60 months.
As Bizz Buzz reported earlier, the Ministry of Statistics & Programme Implementation has set up an Online Computerized Monitoring System or OCMS to oversee the progress of infrastructure projects. The project authorities are regularly urged to enter the list of milestones for each project for better monitoring, but many of them don’t do that.
