About 483 infrastructure projects of Rs 150 cr each show cost overruns
ECONOMY & POLICY

About 483 infrastructure projects of Rs 150 cr each show cost overruns

483 infrastructure projects worth Rs 150 crore or more have cost overruns totalling more than Rs 4.43 lakh crore, according to a report.

Infrastructure projects worth more than Rs 150 crore are tracked by the Ministry of Statistics and Programme Implementation.

483 of the 1,781 projects had cost overruns, while 504 were delayed.

The total cost of these projects up to July 2021 was around Rs 13,22,515.87 crore, or 48.53% of the total cost estimate, according to the report.

However, if delays are calculated using the most recent completion schedule, the number of delayed projects drops to 369, according to the report.

Furthermore, neither the year of commissioning nor the estimated gestation period has been reported for 1,001 projects.

Out of the 504 projects that have been delayed, 92 have been delayed for 1 to 12 months, 118 have been delayed for 13 to 24 months, 178 have been delayed for 25 to 60 months, and 116 have been delayed for 61 months or more.

In these 504 delayed projects, the average time overrun is 46.85 months.

Delays in land acquisition, delays in obtaining forest and environmental clearances, and a lack of infrastructure support and linkages are among the reasons for time overruns, according to various project implementing agencies.

Other reasons include a delay in securing project financing, a delay in completing detailed engineering, a change in scope, a delay in tendering, ordering, and equipment supply, and law and order issues.

The report also cited state-by-state lockdowns caused by Covid-19 as a reason for the projects' delays.

Project agencies have also been observed not reporting revised cost estimates and commissioning schedules for many projects, implying that time or cost overrun figures are underreported.

Image Source


Also read: 470 infra projects show cost overruns worth Rs 4.38 lakh cr

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

483 infrastructure projects worth Rs 150 crore or more have cost overruns totalling more than Rs 4.43 lakh crore, according to a report. Infrastructure projects worth more than Rs 150 crore are tracked by the Ministry of Statistics and Programme Implementation. 483 of the 1,781 projects had cost overruns, while 504 were delayed. The total cost of these projects up to July 2021 was around Rs 13,22,515.87 crore, or 48.53% of the total cost estimate, according to the report. However, if delays are calculated using the most recent completion schedule, the number of delayed projects drops to 369, according to the report. Furthermore, neither the year of commissioning nor the estimated gestation period has been reported for 1,001 projects. Out of the 504 projects that have been delayed, 92 have been delayed for 1 to 12 months, 118 have been delayed for 13 to 24 months, 178 have been delayed for 25 to 60 months, and 116 have been delayed for 61 months or more. In these 504 delayed projects, the average time overrun is 46.85 months. Delays in land acquisition, delays in obtaining forest and environmental clearances, and a lack of infrastructure support and linkages are among the reasons for time overruns, according to various project implementing agencies. Other reasons include a delay in securing project financing, a delay in completing detailed engineering, a change in scope, a delay in tendering, ordering, and equipment supply, and law and order issues. The report also cited state-by-state lockdowns caused by Covid-19 as a reason for the projects' delays. Project agencies have also been observed not reporting revised cost estimates and commissioning schedules for many projects, implying that time or cost overrun figures are underreported. Image Source Also read: 470 infra projects show cost overruns worth Rs 4.38 lakh cr

Next Story
Infrastructure Transport

Atal Setu Records Daily Traffic Below Projections in First Year

India’s longest sea bridge, Atal Setu, which connects Sewri in Mumbai to Chirle in Navi Mumbai, has reported an average daily traffic of 22,689 vehicles in its first year, falling short of the initial projection of 56,000 vehicles per day. The 22-kilometer bridge, inaugurated by Prime Minister Narendra Modi on January 12, 2024, was constructed at a cost of Rs 178.4 billion and is hailed as a milestone in Maharashtra’s infrastructure development. According to the Mumbai Metropolitan Region Development Authority (MMRDA), the Atal Setu, formerly known as the Mumbai Trans Harbour Link (MT..

Next Story
Infrastructure Transport

Railway Board Tightens Rules for Bridge Design After Pamban Lapses

The Railway Board has mandated all zones to inform the Commissioner of Railway Safety (CRS) about the special features of significant and innovative bridges during the design phase. This directive, issued on January 10, follows findings from Southern Circle Railway Safety Commissioner AM Chowdhary, who identified critical lapses in the construction of the newly built Pamban Bridge. The Pamban Bridge, India’s first vertical-lift rail bridge, connects the mainland to Rameswaram Island in Tamil Nadu. Its construction came under scrutiny last November when the CRS flagged issues prior to gr..

Next Story
Infrastructure Urban

IISc and Tata Group to Launch Rs 5 Billion Medical School in Bengaluru

The Indian Institute of Science (IISc), Bengaluru, and the Tata Group have announced a partnership to establish the Tata IISc Medical School on the IISc Bengaluru campus. As part of the collaboration, the Tata Group will contribute Rs 5 billion to support the development of the institution. The Tata IISc Medical School is envisioned as a centre of excellence that combines basic science and engineering with clinical research and medical education. It will specialize in areas such as oncology, cardiology, neurology, nephrology, diabetes and metabolic disorders, infectious diseases, integrat..

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