June 9th 2024.
A recent report released by the Ministry of Statistics and Programme Implementation revealed some concerning news about infrastructure projects in India. The report stated that out of a total of 1,838 projects with a minimum investment of Rs 150 crore, 448 of them had exceeded their initial budget by a staggering amount of Rs 5.55 lakh crore. This cost overrun is a major red flag for the country's development plans.
The ministry, which is responsible for monitoring these large-scale projects, also reported that out of the 448 projects with cost overruns, 792 were facing delays. This means that these projects are not only costing more than expected, but they are also taking longer to complete. The total original cost of all 1,838 projects was estimated at Rs 27,64,246.50 crore, but the anticipated completion cost has now risen to Rs 33,19,601.84 crore.
Out of the 792 delayed projects, 514 of them are currently behind schedule. However, this number decreases to 220 if we take into account the projects that are only delayed by 1-12 months. The remaining 192 have been delayed for 13-24 months, 259 for 25-60 months, and 121 for more than 60 months. On average, these projects are facing a delay of 35.4 months.
The reasons for these delays, as reported by the agencies in charge of these projects, are varied. Some of the major factors include difficulties in acquiring land, delays in obtaining environmental clearances, financial issues, internal conflicts, shortage of manpower, and ongoing legal disputes. These issues have caused significant setbacks for the projects, leading to their increased costs and delayed completion dates.
As of now, the total expenditure incurred on these projects is Rs 1,692,997.5 crore, which is only 51% of the anticipated cost. This means that even though the projects are facing cost overruns and delays, a majority of the funds have already been utilized. The ministry will continue to monitor these projects closely and work towards finding solutions to these challenges in order to ensure the timely completion of these important infrastructure developments.
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