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Infra projects sees cost overruns of Rs 3.16 lakh cr

Tuesday, 16 Apr 2019
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As many as 344 infrastructure projects, each worth Rs 150 crore or above, have shown cost overruns of over Rs 3.16 lakh crore owing to delays and other reasons.

The total original cost of implementation of 1,424 projects was Rs 18,17,469.76 crore and their anticipated completion cost is likely to be Rs 21,33,649.81 crore. Of the total, 344 have seen cost overruns and 384 time escalation.

This reflects an overall cost overruns of Rs 3,16,180.05 crore which is 17.40 percent of original cost.

The expenditure incurred on these projects was Rs 8,06,997.78 crore till December 2018, which is 37.82 percent of the anticipated cost of the projects.

Of the 384 delayed projects, 113 have overall delay in the range of one to 12 months while 61 are delayed by 13 to 24 months, 101 are delayed by 25 to 60 months and 109 projects show 61 months and above delay.

The time overruns for projects are due to delays in land acquisition, forest clearance and supply of equipment, besides other reasons such as fund constraints, geo-mining conditions, slow progress in civil works, inadequate mobilisation by the contractor, and so on.

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