27 Feb , 2022 By : Kanchan Joshi
According to the latest report on infrastructure projects in the country, a total of 443 projects, each entailing investment of Rs150 crore or more have been hit by cost overruns of more than Rs4.45 lakh crore.
"Total original cost of implementation of the 1671 projects was Rs22,54,175.77 crore and their anticipated completion cost is likely to be Rs26,99,651.62 crore, which reflects overall cost overruns of Rs4,45,475.85 crore (19.76% of original cost)," the ministry's latest report for January 2022 said.
The Ministry of Statistics and Program Implementation added that 515 projects of the total 1,671 projects have been delayed. This includes--89 have overall delay in the range of 1-12 months, 113 have been delayed for 13-24 months, 204 projects for 25-60 months, and 108 projects have delays of 61 months and above.
The reasons for the overruns by various projects are--delay in land acquisition, delay in obtaining forest and environment clearances, lack of infrastructure support and linkages, 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 ministry also cited state-wise Covid lockdown as a reason for the delay in implementation of these projects.
The expenditure incurred on these projects till January 2022 was Rs13,16,293.63 crore, or 48.76% of the anticipated cost of the projects.
Further, for 881 projects neither the year of commissioning nor the tentative gestation period has been reported.
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