401 infrastructure projects show cost overruns of Rs 4.02 lakh crore.
As many as 401 infrastructure projects, each worth Rs 150 crore or more, are hit by cost overruns of over Rs 4.02 lakh crore due to delays and other reasons, according to a report.
The Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs 150 crore and above.
The report mentions of the 1,692 such projects, 401 projects reported cost overruns and 552 projects time escalation.
The breakup is as follows.
Total original cost of implementation of the 1,692 projects was Rs 20,75,212.70 crore and their anticipated completion cost is probably going to be Rs 24,78,016.45 crore, which reflects overall cost overruns of Rs 4,02,803.75 crore (19.41 percent of original cost). According to the ministry's latest report for January 2020.
The report further mentions the expenditure incurred on these projects until January 2020 is Rs 10,97,604.64 crore, which is 44.29 percent of the anticipated cost of the projects.
However, it said the amount of delayed projects decreases to 451 if the delay is calculated on the idea of the newest schedule of completion.
Further, it said that for 824 projects neither the year of commissioning nor the tentative gestation has been reported.
Out of 552 delayed projects, 168 have overall delay within the range of 1 to 12 months, 125 with delay within the range of 13 to 24 months, 145 projects reflect delay within the range of 25 to 60 months and 114 projects show delay of 61 months and above.
The average time overrun in these 552 delayed projects is 39.71 months.
The brief reasons for time overruns as reported by various project implementing agencies are delay in land acquisition, delay in obtaining forest/environment clearances and lack of infrastructure support and linkages.
Besides, there are other reasons like delay in tie-up of project financing, delay in finalization of detailed engineering, change in scope, delay in tendering, ordering and equipment supply, law and order problems, geological surprises, pre-commissioning teething troubles and contractual issues, among others, the report said.
It also observed that project agencies aren't reporting revised cost estimates and commissioning schedules for several projects, indicating that point or cost figures are under-reported.
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