373 projects show cost overruns of Rs 3.89 trillion
ECONOMY & POLICY

373 projects show cost overruns of Rs 3.89 trillion

The Ministry of Statistics and Programme Implementation (MoSPI), charged with the responsibility of monitoring infrastructure projects worth Rs 1.5 billion or more, has released a report for August 2019, according to which, out of a total 1,634 projects, around 373 have shown cost overruns to the tune of Rs 3.89 trillion.

The report states that the original estimated cost of all the projects is approximately Rs 19.40 trillion. Completion cost is now expected to be around Rs 23.29 trillion. This amounts to cost overruns of around 20.05 per cent from the original cost – of around Rs 3.89 trillion. Till August 2019, the expenses incurred by these projects amounts to Rs 9.75 trillion, which is 41.85 per cent of the expected cost of the projects.

Additionally, the report included the number of projects that had crossed their deadlines; these amounted to 552. The average time overrun for all 552 projects was reported to be 38.89 months.

Reportedly, out of all the 552 projects showing time overruns, 181 projects are showing an overall delay in the range of 1 to 12 months, 128 projects have delay of 13 to 24 months, 127 projects show delay in the range of 25 to 60 months and 116 projects reflect delay of 61 months and above. However, as per the report, the number of delayed projects decreases to 489 if the delay is calculated on the basis of latest schedule of completion. Moreover, for 687 projects neither the year of commissioning nor the tentative gestation period has been reported.

Escalations in time could be caused by issues relating to obtaining forest clearances, acquiring required land and supply of equipment. According to the report, developers also face additional constraints because of funding, geographical conditions, labour issues and court cases, among other reasons. Reportedly, it is possible that the time and cost overrun figures have been under-reported since project agencies have not reported revised cost estimates and commissioning schedules for numerous projects.

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

The Ministry of Statistics and Programme Implementation (MoSPI), charged with the responsibility of monitoring infrastructure projects worth Rs 1.5 billion or more, has released a report for August 2019, according to which, out of a total 1,634 projects, around 373 have shown cost overruns to the tune of Rs 3.89 trillion. The report states that the original estimated cost of all the projects is approximately Rs 19.40 trillion. Completion cost is now expected to be around Rs 23.29 trillion. This amounts to cost overruns of around 20.05 per cent from the original cost – of around Rs 3.89 trillion. Till August 2019, the expenses incurred by these projects amounts to Rs 9.75 trillion, which is 41.85 per cent of the expected cost of the projects. Additionally, the report included the number of projects that had crossed their deadlines; these amounted to 552. The average time overrun for all 552 projects was reported to be 38.89 months. Reportedly, out of all the 552 projects showing time overruns, 181 projects are showing an overall delay in the range of 1 to 12 months, 128 projects have delay of 13 to 24 months, 127 projects show delay in the range of 25 to 60 months and 116 projects reflect delay of 61 months and above. However, as per the report, the number of delayed projects decreases to 489 if the delay is calculated on the basis of latest schedule of completion. Moreover, for 687 projects neither the year of commissioning nor the tentative gestation period has been reported. Escalations in time could be caused by issues relating to obtaining forest clearances, acquiring required land and supply of equipment. According to the report, developers also face additional constraints because of funding, geographical conditions, labour issues and court cases, among other reasons. Reportedly, it is possible that the time and cost overrun figures have been under-reported since project agencies have not reported revised cost estimates and commissioning schedules for numerous projects.

Next Story
Real Estate

Colliers India Transacts 207,000 sq ft office space at Embassy TechVillage

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has signed an Agreement to Lease (‘ATL’) with global cyber security company Rubrik at Embassy TechVillage in Bengaluru.Colliers, a leading global diversified professional services company, specialising in commercial real estate services, engineering consultancy and investment management facilitated the transaction for Rubrik.Located on Bengaluru’s Outer Ring Road, Embassy TechVillage is one of Embassy REIT’s flagship office parks which offers world-class office spaces, ..

Next Story
Infrastructure Urban

Ensemble Infrastructure India Appoints Suman Saha as Director of Design

Ensemble Infrastructure India Ltd, a leading workplace design and build fit-out company, has appointed Suman Saha as its new Director of Design. With 25 years of experience in the industry, Suman is recognized for his innovative approach and excellence in design leadership.Working closely with the CEO, Suman’s appointment will enhance the company’s design communication across multiple touchpoints, ensuring smooth collaboration between clients, designers, and execution teams for superior project outcomes. Under his guidance, Ensemble will focus on creating workspaces and design labs that em..

Next Story
Products

Ribbon Vanity by Küche7: Fluid Design Meets Everyday Elegance

Küche7, pioneers in luxury stainless steel kitchens, have unveiled the Ribbon Vanity, a graceful creation that transforms bathroom spaces with its soft, flowing design and understated sophistication. Inspired by the fluid form of a ribbon, this vanity combines smooth finishes, clean lines, and gentle curves, offering a timeless aesthetic that seamlessly complements diverse interior styles.Available in a refined blush pink hue, the Ribbon Vanity effortlessly merges functionality with elegance. With thoughtfully designed storage options, it ensures that bathroom essentials are neatly organised ..

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