363 infra projects show cost overruns of over Rs. 3.42 lakh crore
As many as 363 infrastructure projects, each worth Rs 150 crore or more, have shown cost overruns to the tune of over Rs 3.42 lakh crore owing to delays and other reasons, a report said. The Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs 150 crore and above.
“Total original cost of implementation of the 1452 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% of original cost),” the ministry’s latest report for October 2018 said. Of these 1,452 projects, 363 reported cost overruns and 375-time escalation.
According to the report, the expenditure incurred on these projects until October 2018 is Rs 7,91,102.87 crore, which is 36.46 percent of the anticipated cost. However, it said the number of delayed projects decreases to 304 if the delay is calculated on the basis of the latest schedule of completion.
For 700 projects, neither the year of commissioning nor the tentative gestation period has been reported. Out of the 375 delayed projects, 111 have the overall delay in the range of 1 to 12 months, 61 are delayed by 13 to 24 months, 95 reflect the delay of 25 to 60 months and 108 projects show 61 months and above delay.
The average time overrun in these 375 delayed projects is 45.14 months. The brief reasons for time overruns as reported by various project implementing agencies are delays in land acquisition, forest clearance, and supply of equipment.
Besides, there are other reasons like 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, ROU/ROW (right of use/right of way) problems, law and order situation, among others. It also observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time/cost overrun figures are under-reported.