NEW DELHI: Over 51% of government projects costing Rs 150 crore and above are seeing delays in completion as on December 1, 2022, government data shows. In November 2020, 32% of the projects showed delays in completion and in March 2018, only 19% projects were delayed.
The number of projects showing cost overruns as of December 1, 2022, was 22%, higher than 13% in March 2018. The report shows the total cost escalation has been to the tune of Rs 4.5 lakh crore, which is 22% more than the original project cost. A report released by the Infrastructure and Project Monitoring Division of the Ministry of Statistics and Programme Implementation (MOSPI) shows.
“The projects got delayed mainly due to delay in land acquisition, obtaining forest/environment clearances, lack of infrastructure support, delay in tie-up of project financing and law and order issues,” says the report.
A Kotak Institutional Securities report suggests the delays could be due to disruption from the Covid pandemic but the large slippages are concerning nonetheless. There was a steady fall in total number of projects under execution in the eighth month of FY23. Meanwhile, average time overrun in delayed projects stands at 42 months.
The majority of the delay is seen in roads, railways and petroleum sectors. As per the report, in November, out of 1,476 projects, 16 projects were added and 54 projects, majorly comprising road projects, were completed. “756 projects are delayed with respect to their original schedules and 304 projects have reported additional delays vis-à-vis their date of completion reported in the previous month. Of these 304 projects, 58 are mega projects costing Rs 1,000 crore and above,” the report added.
Project delays & cost overruns
1,476 total projects
9 projects ahead of schedule
255 projects on schedule
756 projects delayed
215 projects time and cost overrun
Rs 4.52 lakh crore total cost overrun
Note: Data till November 2022
Source: Ministry of Statistics and Programme Implementation