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483 infra projects hit by cost overruns worth Rs 4.43 lakh cr

483 infra projects hit by cost overruns worth Rs 4.43 lakh cr

The expenses incurred on the said projects till July 2021 stood at Rs 13,22,515.87 crore, or 48.5% of their anticipated costs, according to a report by the Ministry of Statistics and Programme Implementation

Of 1,781 of the 150 infra projects, 483 showed cost overruns while 504 were delayed Of 1,781 of the 150 infra projects, 483 showed cost overruns while 504 were delayed

As many as 483 infrastructure projects, each around Rs 150 crore or more, have been by cost overruns amounting to over Rs 4.43 lakh crore, according to a report by the Ministry of Statistics and Programme Implementation. 

The ministry tracks infra projects worth Rs 150 crore and above. Of 1,781 of them, 483 projects showed cost overruns while 504 were delayed. 

As per the report, the expenses incurred on the said projects till July 2021 stood at Rs 13,22,515.87 crore, or 48.5% of their anticipated costs. 

However, it stated that the total count of delayed projects comes down to 369 if the delay is computed on the basis of the latest schedule of completion.

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"Total original cost of implementation of the 1781 projects was Rs 22,82,160.40 crore and their anticipated completion cost is likely to be Rs 27,25,408.00 crore, which reflects overall cost overruns of Rs 4,43,247.60 crore (19.42% of original cost)," the ministry's latest report for July 2021 said.

Further, for 1,001 projects neither the year of commissioning nor the tentative gestation period has been reported.

Out of the 504 delayed projects, 92 have overall delay in the range of 1-12 months, 118 have been delayed for 13-24 months, 178 for 25-60 months and 116 projects have delays of 61 months and above.

The average time overrun in these 504 delayed projects is 46.85 months.

Reasons for time overruns as reported by various project implementing agencies include delay in land acquisition, delay in obtaining forest and environment clearances, and lack of infrastructure support and linkages.

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Delay in tie-up for project financing, delay in finalisation of detailed engineering, change in scope, delay in tendering, ordering and equipment supply, and law and order problems are among the other reasons.

The report also cited state-wise lockdowns due to COVID-19 as a reason for the delay in implementation of these projects.

It has also been observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time/cost overrun figures are underreported, it added.

(With inputs from PTI.)