April 28th 2024.
According to an official report, a total of 448 infrastructure projects in India, each requiring a minimum investment of Rs 150 crore, encountered a cost increase of over Rs 5.55 lakh crore during the third quarter of 2023. This information is part of the Quarterly Project Implementation Status Report on Central Sector Projects, which provides detailed updates on 1,897 projects. The Ministry of Statistics and Programme Implementation is responsible for preparing this report.
Out of the 1,897 projects, it was found that 448 of them had exceeded their allocated budget by a whopping Rs 5,55,352.41 crore, which amounts to 65.2% of their initial sanctioned cost. However, in terms of the most recent approved cost, only 292 projects experienced a cost increase of Rs 2,89,699.46 crore. Additionally, 276 projects were facing both time and cost overruns.
The report also revealed that while 56 projects were ahead of schedule and 632 were on track, 902 projects were experiencing delays in their completion compared to the original schedule. Furthermore, for 307 projects, the original or anticipated completion date was either not reported or had passed. The total expected cost for these 1,897 projects is estimated at Rs 31,74,489.91 crore.
As of December 31, 2023, the total expenditure on these projects stood at Rs 16,89,400.92 crore, which is 53.22% of the anticipated completion cost and 63.9% of the initial cost. For the current fiscal year, an allocation of Rs 3,70,983.54 crore has been made for these projects, as stated in the report.
In comparison to the previous quarter, the percentage of delayed projects decreased from 56.70% to 47.55%, while the percentage of cost overruns also reduced from 21.42% to 20.1%. The reasons cited by project implementing agencies for these delays include issues such as land acquisition, obtaining clearances for forest and environment, and law and order problems. The report also highlighted the impact of state-wise lockdowns due to the COVID-19 pandemic on the implementation of these projects.
While it is inevitable to avoid cost increases due to general price escalation, the report suggested that delays can be minimized to prevent further cost escalations. This issue has been a major concern for many projects, and it is essential to address it to ensure timely completion and efficient use of resources.
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