NEW DELHI: Delay in approvals of 363 infrastructure projects has resulted in cost overruns to the tune of over Rs 3.42 lakh crore, said a report by the Ministry of Statistics and Programme Implementation (MoSPI).
“The total original cost of implementation of the 1,452 projects was Rs 18,27,757.29 crore and their anticipated completion cost is likely to be Rs 21,70,036.32 crore, which reflects overall cost overruns of Rs 3,42,279.03 crore (18.73 per cent of the original cost),” the ministry’s latest report for October 2018 said.
Of the total, projects, about 363 reported cost overruns and 375 time escalation, the report said, pointing out that the project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time and cost overrun figures are under-reported.
The average time overrun in these 375 delayed projects is 45.14 months.
The report further said that for 700 projects, neither the year of commissioning nor the tentative gestation period has been reported. Out of the 375 delayed projects, 111 have overall delay in the range of 1-12 months, 61 are delayed by 13-24 months, 95 reflect delay of 25-60 months and 108 projects show 61 months and above delay. The MoSPI monitors infrastructure projects worth above Rs 150 crore.
The report cited delays in land acquisition, forest clearance and supply of equipment as main reason for time overrun of projects.
Apart from this, fund constraints, geological surprises, geo-mining conditions, slow progress in civil works, shortage of labour, inadequate mobilisation by the contractor, Maoist problems, court cases, contractual issues, law and order situation is also adding to the delay of projects, thus resulting in cost overruns.