Massive Infrastructure Delays: 458 Projects Hit by Cost Overrun of Rs 5.71 Lakh Crore in May 2024
India's infrastructure sector is grappling with massive delays, with 458 projects worth Rs 150 crore or more experiencing cost overruns of over Rs 5.71 lakh crore in May 2024.
Infrastructure ProjectsCost OverrunDelaysMinistry Of Statistics And Programme ImplementationMospiReal Estate NewsJun 23, 2024
The total original cost of implementation of these 1,817 projects was Rs 27,58,567.23 crore, and their anticipated completion cost is likely to be Rs 33,29,647.99 crore, reflecting an overall cost overrun of over Rs 5,71,080.76 (20.70 per cent of original cost). The expenditure incurred on these projects till May 2024 is Rs 1,707,190.15 crore, which is 51.3 per cent of the anticipated cost of the projects.
The report also highlights that 831 projects have been delayed, with the average time overrun being 35.1 months. Reasons for time overrun, as reported by various project implementing agencies, include land acquisition, environmental clearance, financial issues, contractual/internal issues, manpower shortage, and litigation issues.
The MoSPI report also notes that the number of delayed projects decreased to 554, provided the delay is calculated on the basis of the latest schedule of completion. Of the 831 delayed projects, 245 have overall delays in the range of 1-12 months, 188 have been delayed for 13-24 months, 271 projects for 25-60 months, and 127 projects for more than 60 months.
The Indian government has been focusing on upgrading the country's infrastructure, but these delays and cost overruns are likely to impact the sector's growth and development. The government needs to take urgent steps to address these issues and ensure that projects are completed on time and within budget.
Frequently Asked Questions
How many infrastructure projects have been hit by cost overruns in May 2024?
458 projects worth Rs 150 crore or more have been hit by cost overruns of over Rs 5.71 lakh crore in May 2024.
What is the average time overrun in delayed projects?
The average time overrun in these 831 delayed projects is 35.1 months.
What are the reasons for time overrun in infrastructure projects?
Reasons for time overrun, as reported by various project implementing agencies, include land acquisition, environmental clearance, financial issues, contractual/internal issues, manpower shortage, and litigation issues.
How much is the total original cost of implementation of these 1,817 projects?
The total original cost of implementation of these 1,817 projects was Rs 27,58,567.23 crore.
What is the anticipated completion cost of these projects?
The anticipated completion cost of these projects is likely to be Rs 33,29,647.99 crore, reflecting an overall cost overrun of over Rs 5,71,080.76 (20.70 per cent of original cost).
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