1. Home
  2. Infrastructure Urban
  3. SMART CITIES
  4. How India is losing Rs 3 trillion in infrastructure projects!
How India is losing Rs 3 trillion in infrastructure projects!
SMART CITIES

How India is losing Rs 3 trillion in infrastructure projects!

02 Jan 2019 2 Min Read CW Team

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 Transport
22 Nov 2024

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

A new greenfield highway connecting Kharagpur in West Bengal and Visakhapatnam in Andhra Pradesh, passing through Odisha, is set to be constructed soon. This expressway is poised to become a vital logistics corridor, enhancing high-speed transportation in the region. Works Minister Prithviraj Harichandan shared that preliminary preparations for the project have already commenced. He emphasised that the expressway would play a crucial role in the Gati Shakti Framework of the Central government, describing it as a groundbreaking initiative in road construction for Odisha. Greenfield roads typi..

Read More
Next Story
Infrastructure Urban
22 Nov 2024

LTTS wins project to develop smart cities in Colorado USA

Mid-sized Indian IT services company L&T Technology Services (LTTS) announced on Monday a strategic partnership with the Colorado Smart Cities Alliance (CSCA) to develop smart city projects across Colorado by integrating innovation and technology. In a regulatory filing, LTTS stated that the collaboration would utilize its advanced engineering expertise to support CSCA's mission of enhancing urban living and creating sustainable ecosystems through smart city solutions. The partnership aims to develop sustainable, efficient, and technologically advanced communities by pooling resources and exp..

Read More
Next Story
Infrastructure Transport
22 Nov 2024

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Bengaluru’s metro network is set for a major expansion, aiming to extend its total length to 175 km by 2026. This ambitious project is part of the Namma Metro initiative, designed to improve connectivity across the city, alleviate traffic congestion, and promote sustainable urban mobility. The expansion involves constructing new metro corridors, such as the Purple Line and the Outer Ring Road-Airport Line, which will link major city hubs, commercial centres, and residential areas. This development is expected to enhance accessibility for commuters throughout Bengaluru. A key highlight of t..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister
ROADS & HIGHWAYS
22 Nov 2024

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

LTTS wins project to develop smart cities in Colorado USA
SMART CITIES
22 Nov 2024

LTTS wins project to develop smart cities in Colorado USA

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility
RAILWAYS & METRO RAIL
22 Nov 2024

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Chennai Metro finishes piling work from Kodambakkam Powerhouse to Porur
RAILWAYS & METRO RAIL
22 Nov 2024

Chennai Metro finishes piling work from Kodambakkam Powerhouse to Porur

Ambuja, ACC stocks plunge after Gautam Adani's US indictments
ECONOMY & POLICY
22 Nov 2024

Ambuja, ACC stocks plunge after Gautam Adani's US indictments

Rajasthan govt and Centre to jointly run extended Jaipur Metro lines
RAILWAYS & METRO RAIL
22 Nov 2024

Rajasthan govt and Centre to jointly run extended Jaipur Metro lines

Hyderabad Civic Body Demolishes Five-Storey Building in Gachibowli
Real Estate
22 Nov 2024

Hyderabad Civic Body Demolishes Five-Storey Building in Gachibowli

Hill highway project to finish by 2026, says PWD minister
ROADS & HIGHWAYS
22 Nov 2024

Hill highway project to finish by 2026, says PWD minister

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