May 12th 2024.
According to a recent official report, 449 infrastructure projects in India, each with a budget of Rs 150 crore or more, have exceeded their expected costs by a staggering amount of Rs 5.01 lakh crore in March 2024. The Ministry of Statistics and Programme Implementation, responsible for monitoring such projects, has revealed that out of a total of 1,873 projects, 449 have overshot their budgets and 779 have been delayed.
The initial expected cost for all these projects was calculated to be Rs 26,87,535.69 crore, but now it is estimated that the final cost will be around Rs 31,88,859.02 crore, resulting in a total cost overrun of Rs 5,01,323.33 crore. As of March 2024, a total of Rs 17,11,648.99 crore has already been spent on these projects, which accounts for 53.68% of the final anticipated cost. However, the good news is that the number of delayed projects has decreased to 567 if we consider the latest schedule of completion.
The report also mentions that there is no information available for the year of commissioning or the estimated gestation period for 393 of these projects. Out of the 779 delayed projects, 202 have been delayed by 1-12 months, while 181 have been delayed for 13-24 months. Furthermore, 277 projects have been delayed by 25-60 months, and 119 projects have been delayed for more than 60 months. On average, these projects have been delayed by 36.04 months.
The project implementing agencies have cited various reasons for these delays, including issues with land acquisition, obtaining necessary clearances from authorities, and lack of infrastructure support and connections. Other reasons mentioned include delays in securing project financing, finalizing detailed engineering plans, changes in scope, delays in tendering, ordering and supplying equipment, and law and order problems.
The report also highlights the impact of state-wide lockdowns due to the COVID-19 pandemic, which has caused further delays in the implementation of these projects. It has also been noted that many project executing agencies have not provided revised cost estimates and commissioning schedules, indicating that the figures for cost and time overruns may be under-reported.
In conclusion, it is evident that there are significant challenges faced by infrastructure projects in India, resulting in cost and time overruns. The government and project implementing agencies must work together to address these issues and ensure timely and efficient completion of these crucial projects for the country's development.
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