infrastructure sector 335 projects costing Rs 150 crore or more have cost overrun of more than Rs 4.46 lakh crore from the estimated cost. A report said that the cost of these projects has increased due to delay and other reasons. The Ministry of Statistics and Program Implementation monitors the infrastructure sector with an investment of Rs 150 crore or more. The ministry’s January 2023 report said that out of 1,454 such projects, 335 had cost overruns, while 871 projects were running late. According to the report, the original cost of implementation of these 1,454 projects was Rs 20,59,065.57 crore, but now it is estimated to increase to Rs 25,05,248.43 crore.
The cost of projects increased by 21.67 percent
This shows that the cost of these projects has increased by 21.67 percent i.e. Rs 4,46,182.86 crore. As per the report, Rs 13,53,875.70 crore has been spent on these projects till January 2023, which is 54.04 per cent of the total estimated cost. However, the ministry has said that the number of delayed projects will come down to 703 if the latest project completion timelines are taken into account. However, the year of commissioning of 309 projects has not been given in this report.
Delay in completion of projects due to these reasons
The report states that out of 871 delayed projects, 169 projects are delayed by one month to 12 months, 157 projects by 13 to 24 months, 414 projects by 25 to 60 months and 131 projects by 61 months or more. . The average delay in these 871 projects is 39.69 months. The main reasons for delay in these projects are delay in land acquisition, delay in getting environment and forest department clearances and lack of infrastructure. Apart from these, project financing, delay in detailed engineering, change in project scope, delay in tendering process, delay in award of contracts and procurement of equipment, legal and other problems, unexpected land changes, etc. Projects have been delayed.