According to an official report, 384 infrastructure projects were hit by cost overruns in the January-March quarter, while their individual estimated cost was hovering around Rs 150 core.
As per the Ministry of Statistics and Programme Implementation, 384 of the total 1,566 projects have been hit by cost overruns and as many as 931 projects have been hanging fire, reported PTI. The Ministry of Statistics and Programme Implementation is assigned to monitor infrastructure projects worth Rs 150 crore and above.
According to a quarterly report for January-March 2023 prepared by the ministry, 384 projects out of 1,566 projects have had cost overruns to the tune of Rs 4,66,874.46 crore which is 21.59 per cent of their sanctioned cost. It is anticipated that the cost of the completions of these 1,566 projects will be pegged at Rs Rs 26,29,193.77 crore.
The Quarterly Project Implementation Status Report (QPISR) on Central Sector Projects — that cost Rs 150 crore and above — for the 4th quarter of 2022-23 (January-March 2023), gives detailed information on 1,566 projects, which cover 443 mega projects (each costing Rs 1,000 crore and above) and 1,123 major projects (each costing Rs 150 crore and above but below Rs 1,000 crore), reported PTI.
Twelve projects of the 1,566 projects were going well ahead of schedule, 292 projects being on schedule, 931 projects were hanged fire with respect to the original schedule of completion. As per the report, either the original or anticipated date of completion regarding 331 projects was not reported.
The report stated that the percentage change of delayed projects had increased from 41.27 percent in the fourth quarter of 2022 to 59.45 percent in the quarter ending March 2023. As far as cost overrun is concerned, its percentage had changed from 21.45 percent in the fourth quarter of 2022 to 21.59 percent in the quarter ending March 2023.
Contractual issues, land acquisition, forest and wildlife clearances, environment and state-wise lockdown owing to Covid 19 (imposed in 2020 and 2021) are billed to be major factors for delaying the projects.