As many as 428 infrastructure projects, every entailing an funding of Rs 150 crore or extra, have been hit by cost overruns of greater than Rs 4.98 lakh crore, as per a report.
According to the Ministry of Statistics and Programme Implementation, which screens infrastructure projects of Rs 150 crore and above, out of 1,559 projects, 428 projects reported cost overruns and as many as 647 projects have been delayed.
“Total authentic cost of implementation of the 1559 projects was Rs 21,73,907.11 crore and their anticipated completion cost is more likely to be Rs 26,72,201.26 crore, which displays total cost overruns of Rs 4,98,294.15 crore (22.92% of authentic cost),” the ministry’s newest report for April 2022 mentioned.
According to the report, the expenditure incurred on these projects until April 2022 was Rs 13,50,610.98 crore, which was 50.54 per cent of their anticipated cost.
However, the quantity of delayed projects decreases to 525 if the delay is calculated on the premise of newest schedule of completion.
Further, for 619 projects neither the yr of commissioning nor the tentative gestation interval has been reported.
Out of the 647 delayed projects, 103 have total delays within the vary of 1-12 months, 111 have been delayed for 13-24 months, 314 projects for 25-60 months and 119 projects have been delayed for 61 months and above.
The common time overrun in these 647 delayed projects was 42.83 months.
Reasons for time overruns as reported by numerous venture implementing businesses embody delay in land acquisition, delay in acquiring forest and atmosphere clearances, and lack of infrastructure assist and linkages.
Delay in tie-up for venture financing, delay in finalisation of detailed engineering, change in scope, delay in tendering, ordering and tools provide, and regulation and order issues are among the many different causes.
The report additionally cited state-wise lockdowns as a result of COVID-19 as a cause for the delay in implementation of these projects.
It has additionally been noticed that venture businesses usually are not reporting revised cost estimates and commissioning schedules for a lot of projects, which suggests that point/cost overrun figures are under-reported, it acknowledged.
(Only the headline and movie of this report could have been reworked by the Business Standard workers; the remaining of the content material is auto-generated from a syndicated feed.)