According to a recent report by the Ministry of Statistics and Programme Implementation in June 2023, a total of 393 infrastructure projects, each requiring an investment of Rs 150 crore or more, have experienced cost overruns amounting to a staggering Rs 4.64 lakh crore. These cost overruns represent 19.48 percent of the original projected cost of Rs 23.86 lakh crore for 1,643 projects being monitored by the ministry.
Furthermore, the completion cost of these infrastructure projects is estimated to be Rs 28.51 lakh crore. As of June 2023, the cumulative expenditure incurred on these projects stands at Rs 14.99 lakh crore, which is 52.59 percent of the anticipated total cost.
What more does the report reveal?
The report also reveals that a total of 815 projects have faced delays. However, when considering the latest schedule of completion, the number of delayed projects decreases to 594. Among the delayed projects, 193 have experienced delays ranging from 1 to 12 months, 192 projects were delayed for 13 to 24 months, 293 projects for 25 to 60 months, and 137 projects have been delayed for more than 60 months. The average time overrun for these 815 delayed projects was found to be 37.49 months.
Various reasons have been cited by project implementing agencies for the time overruns. These include delays in land acquisition, obtaining forest and environment clearances, lack of infrastructure support, and other linkages. Additionally, factors like delays in project financing tie-ups, finalization of detailed engineering, scope changes, tendering, equipment supply, and law and order issues have contributed to the delays.
Moreover, the report highlights that state-wise lockdowns due to COVID-19, which were imposed in 2020 and 2021, have also had an impact on the implementation of these projects.
A concerning finding from the report is that many project executing agencies have not been reporting revised cost estimates and commissioning schedules, which indicates that time and cost overrun figures might be under-reported.
In conclusion, the report paints a worrisome picture of the status of infrastructure projects in June 2023, with substantial cost overruns and delays affecting a significant number of ventures across various sectors.
(With PTI Inputs)