350 Infra Projects May See Cost overrun of Rs 1.95 Lakh Crore, Says Govt Report
According to the report, the expenditure incurred on these infrastructure projects till September 2017 is Rs 6,79,801.38 crore, which is 38.86 per cent of the anticipated cost of the projects.
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New Delhi: As many as 350 infrastructure projects, each worth Rs 150 crore or above, may see a cost overrun of Rs 1.95 lakh crore because of various reasons, including delays, according to a government report.
Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs 150 crore and above.
"Total original cost of implementation of the 1,263 projects was Rs 15,53,683.89 crore and their anticipated completion cost is likely to be Rs 17,49,427.56 crore, which reflects overall cost overruns of Rs 1,95,743.67 crore (12.60 per cent of original cost)," the ministry's flash report for September this year has stated.
According to the report, the expenditure incurred on these projects till September 2017 is Rs 6,79,801.38 crore, which is 38.86 per cent of the anticipated cost of the projects.
The 1,263 projects in question include 350 that reported cost overrun and 297 that showed time escalation.
The report stated that of these 1,263, 14 projects are ahead of schedule, 307 are on schedule, 297 are delayed, 350 projects show cost overrun and 103 projects show both time and cost overrun with respect to original implementation schedules.
However, it stated that the number of delayed projects decreases to 249 if delay is calculated with reference to latest revised schedules of completion.
The report also highlights that for 645 projects, the original/anticipated commissioning dates were not reported by the authorities concerned.
Of the 1,263 projects, 380 are mega projects worth Rs 1,000 crore and above.
Total original cost of implementation of these 380 projects was Rs 11,96,304.11 crore and their anticipated completion cost is likely to be Rs 13,62,966.94 crore, which reflects overall cost overruns of Rs 1,66,662.83 crore (13.93 per cent of original cost).
The expenditure incurred on these projects till September 2017 is Rs 5,64,940.14 crore, which is 41.45 per cent of the anticipated cost of the projects.
Out of the 380 mega projects, 145 projects have cost overruns with respect to original cost and the number of such projects decreased to 114 when cost overrun is calculated on the basis of revised cost.
The report attributes the time overrun to a host of issues including delay in land acquisition, forest clearance, supply of equipment, fund constraints, the Maoist incursion, legal cases and law and order situation.
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