In a bad news for the economy, out of total infrastructure projects under implementation, three-fourths of projects are either delayed or don’t carry any definitive timeline for completion, a report said.
In a bad news for the economy, out of total infrastructure projects under implementation, three-fourths of projects are either delayed or don’t carry any definitive timeline for completion, a report said. The total cost for 1,304 projects is pegged at Rs 16.2 lakh crore of original cost of implementation. “These projects after latest evaluation are expected to cost Rs. 18.38 lakh crore, of which Rs. 6.36 lakh crore or 34.6% of original cost have been already incurred,” CARE Ratings report said.
However, not all projects are getting delayed due to legacy issues, the report said. The number of projects under implementation has grown from 727 in April 2014 to 1,304 in February 2018, the report added.
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“Delayed or projects without definitive timelines of completion makeup for almost 75 percent of the total projects being implemented — 262 projects are delayed and 721 projects have no definitive timeline for implementation,” CARE said in its report.
“With significant States going for elections and the General election approaching, the need to complete a bulk of these projects would be the key focus. Rajasthan, Madhya Pradesh, Chhattisgarh, Maharashtra, Uttar Pradesh and Bihar would be among the focus states, witnessing higher project completion by March 2019. These states together account for over 1/3rd of the projects under implementation,” the report also added.
The largest proportion of delayed projects come under railways. “Two-hundred and three projects or 60 percent of the 334 projects in the sector are facing cost overruns. In terms of time-overrun, 33 projects are delayed with regards to the revised schedule,” the report stated.
The power sector scenario is dismal as well, as per CARE report. “Forty-nine projects or 54 percent of the projects under implementation are facing time overrun with regards to the latest schedule. Forty-eight projects out of 121 being implemented are facing cost overrun,” it said.