445 infra projects hits cost overrun of Rs 4.4 lakh crore
ECONOMY & POLICY

445 infra projects hits cost overrun of Rs 4.4 lakh crore

According to a report, 445 infrastructure projects with an investment of Rs 150 crore each have been hit by cost overruns of over Rs 4.4 lakh crore.

The Ministry of Statistics and Programme Implementation looks into the infrastructure projects of Rs 150 crore or more. Of 1,673 projects, 445 faced cost overruns, and 557 projects were delayed.

The Ministry said that the initial implementation cost of these projects was Rs 22,23,791.78 crore, and their anticipated cost is likely to be Rs 26,64,649.18 crore, with Rs 4,40,857.40 crore cost overruns.

As per the report, the expenditure incurred on these infrastructure projects is Rs 13,08,766.65 crore, which is 49.12% of the anticipated cost of the projects.

The number of delayed projects dropped to 420 if the delay is counted based on the latest schedule of completion.

As many as 838 projects have not been given the year of commissioning nor the tentative gestation period.

From the 557 delayed projects, 97 projects have an overall delay between 1-12 months, 127 projects have been delayed for 13-24 months, 217 projects for 25-60 months and 116 projects for 61 months or more. The average time overrun in these projects is 45.69 months.

Time overruns were due to the issue of land acquisition, delay in forest and environment clearances, lack of infrastructure support and linkages. Other reasons include project financing, delay in finalising detailed engineering, change in scope, delay in the tendering process, ordering and equipment supply, law and order problems and Covid-19 restrictions and state-wise lockdowns.

Image Source

Also read: China to rollout infra projects to combat economic slowdown

Also read: BRO develops Project Yojak in Himachal Pradesh to boost road infra

According to a report, 445 infrastructure projects with an investment of Rs 150 crore each have been hit by cost overruns of over Rs 4.4 lakh crore. The Ministry of Statistics and Programme Implementation looks into the infrastructure projects of Rs 150 crore or more. Of 1,673 projects, 445 faced cost overruns, and 557 projects were delayed. The Ministry said that the initial implementation cost of these projects was Rs 22,23,791.78 crore, and their anticipated cost is likely to be Rs 26,64,649.18 crore, with Rs 4,40,857.40 crore cost overruns. As per the report, the expenditure incurred on these infrastructure projects is Rs 13,08,766.65 crore, which is 49.12% of the anticipated cost of the projects. The number of delayed projects dropped to 420 if the delay is counted based on the latest schedule of completion. As many as 838 projects have not been given the year of commissioning nor the tentative gestation period. From the 557 delayed projects, 97 projects have an overall delay between 1-12 months, 127 projects have been delayed for 13-24 months, 217 projects for 25-60 months and 116 projects for 61 months or more. The average time overrun in these projects is 45.69 months. Time overruns were due to the issue of land acquisition, delay in forest and environment clearances, lack of infrastructure support and linkages. Other reasons include project financing, delay in finalising detailed engineering, change in scope, delay in the tendering process, ordering and equipment supply, law and order problems and Covid-19 restrictions and state-wise lockdowns. Image Source Also read: China to rollout infra projects to combat economic slowdown Also read: BRO develops Project Yojak in Himachal Pradesh to boost road infra

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

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