How India is losing Rs 3 trillion in infrastructure projects!
SMART CITIES

How India is losing Rs 3 trillion in infrastructure projects!

Over the past few decades, India has witnessed the launch of several big-ticket infrastructure projects, pumping billions into the country’s aviation, industrial development, smart cities, railways, roads and energy sectors. 
However, the scale of the projects have also led to delays in some of them. The most recent available Flash Report (September 2018), published by the Ministry of Statistics and Planning, is testament to this.
According to the report, out of 1,420 central-sector infrastructure projects worth Rs 1.50 billion and above, 385 are on schedule, 366 projects are delayed, 358 projects reported cost overruns, and 136 projects reported both time and cost overruns with respect to their original schedules. That said, around 32 projects have reported additional delays vis-à-vis their date of completion. Of these 32 projects, 14 are mega projects costing Rs 10 billion and above.
The total original cost of implementation of the 1,420 projects when sanctioned was Rs 18.05 trillion but this was subsequently revised to Rs 21.63 trillion, implying a cost overrun of Rs 3.38 trillion (20 per cent of the original cost). The expenditure incurred on these projects till September 2018 is Rs 7.83 trillion, which is 36.21 per cent of the anticipated cost of the projects.
However, the number of delayed projects decreases to 300 if delay is calculated on the basis of latest schedule of completion. Further, for 651 projects, neither the year of commissioning nor the tentative gestation period has been reported. Out of 366 delayed projects, 100 (27.32 per cent) projects have an overall delay in the range of one to twelve months, 69 (18.85 per cent) projects have a delay in the range of 13 to 24 months, 91 (24.86 per cent) projects have a delay in the range of 25 to 60 months and 106 (28.96 per cent) projects have a delay of 61 months and above. 
The average time overrun in these 366 delayed projects is 45.95 months.

SHRIYAL SETHUMADHAVAN and RAHUL KAMAT
 

Over the past few decades, India has witnessed the launch of several big-ticket infrastructure projects, pumping billions into the country’s aviation, industrial development, smart cities, railways, roads and energy sectors.  However, the scale of the projects have also led to delays in some of them. The most recent available Flash Report (September 2018), published by the Ministry of Statistics and Planning, is testament to this. According to the report, out of 1,420 central-sector infrastructure projects worth Rs 1.50 billion and above, 385 are on schedule, 366 projects are delayed, 358 projects reported cost overruns, and 136 projects reported both time and cost overruns with respect to their original schedules. That said, around 32 projects have reported additional delays vis-à-vis their date of completion. Of these 32 projects, 14 are mega projects costing Rs 10 billion and above. The total original cost of implementation of the 1,420 projects when sanctioned was Rs 18.05 trillion but this was subsequently revised to Rs 21.63 trillion, implying a cost overrun of Rs 3.38 trillion (20 per cent of the original cost). The expenditure incurred on these projects till September 2018 is Rs 7.83 trillion, which is 36.21 per cent of the anticipated cost of the projects. However, the number of delayed projects decreases to 300 if delay is calculated on the basis of latest schedule of completion. Further, for 651 projects, neither the year of commissioning nor the tentative gestation period has been reported. Out of 366 delayed projects, 100 (27.32 per cent) projects have an overall delay in the range of one to twelve months, 69 (18.85 per cent) projects have a delay in the range of 13 to 24 months, 91 (24.86 per cent) projects have a delay in the range of 25 to 60 months and 106 (28.96 per cent) projects have a delay of 61 months and above.  The average time overrun in these 366 delayed projects is 45.95 months. SHRIYAL SETHUMADHAVAN and RAHUL KAMAT  

Next Story
Infrastructure Urban

Campal Stadium Project Delayed

The football stadium and parade ground project in Campal, Panaji, which was initiated under the smart city plan, has yet to be completed, even though it is over a year past its original deadline. The project started on March 21, 2022, and according to the initial work order, it was supposed to be finished by September 20, 2023. Imagine Panaji Smart City Development Ltd (IPSCDL) has reported that 98% of the work is complete, with the final 2% expected to be finished by March 2025. "A small area where the concrete batching plant is situated needs completion," they said. The project's total est..

Next Story
Infrastructure Urban

Cleanliness Control Centre to Monitor Work, Complaints 24X7

Jaipur's cleanliness management system is set to be more efficient with the Integrated Command and Control Centre now operating 24/7. On Friday, Arun Kumar Hasija, CEO of Jaipur Smart City Limited, issued orders to implement this change. Hasija explained that the centre will supervise door-to-door refuse collection, sanitation operations, and mechanized cleaning activities. Special attention is being given to night-time cleaning across the city, with advanced machinery being used to sanitize road dividers in areas like the Walled City. The centre will now operate round-the-clock to improve c..

Next Story
Infrastructure Urban

Rs 1 Bn Plan for Waste Disposal at Bandhwari Landfill

A Rs 1 billion plan for disposing of over 10 lakh tonnes of legacy waste at the Bandhwari Solid Waste Treatment Plant has been submitted to the Department of Urban Local Bodies (ULB) for approval. The proposal is expected to be approved in an upcoming purchase committee meeting led by Haryana Chief Minister Nayab Singh Saini, officials from the Municipal Corporation of Gurugram (MCG) said. This proposal follows the December 17 deadline set by the National Green Tribunal (NGT) for MCG to submit an update on waste disposal progress at Bandhwari. Earlier this year, MCG had assured the NGT in an a..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000