According to the government, 448 infrastructure projects saw a Rs 5.55 lakh cr cost overrun in October through December

According to the government, 448 infrastructure projects saw a Rs 5.55 lakh cr cost overrun in October through December

A total of 448 projects, or 65.2% of the 1,897 approved projects, had cost overruns of Rs 5,55,352.41 crore.

An official study said that during the December quarter of 2023, there were up to 448 infrastructure projects with an investment of at least Rs 150 crore that had cost overruns of more than Rs 5.55 lakh crore. For the third quarter of 2023–2024, the Quarterly Project Implementation Status Report (QPISR) on Central Sector Projects (costing Rs 150 crore and above) includes comprehensive data on 1,897 projects.

The Ministry of Statistics and Program Implementation is responsible for creating the QPISR. A total of 448 projects, or 65.2% of the 1,897 approved projects, had cost overruns of Rs 5,55,352.41 crore.

It did note, however, that 292 projects have reported cost overruns of Rs 2,89,699.46 crore with reference to the most recent authorized cost. Moreover, 276 projects have exceeded their budgets and schedules.

Of the 1,897 projects, 902 were completed later than the initial plan, 56 were completed ahead of schedule, and 632 were completed on time. It also said that 307 projects had either an initial completion date that was not disclosed or one that had expired.

The stated estimated cost of completion for these 1,897 projects is Rs 31,74,489.91 crore. As of December 31, 2023, the entire spending amounted to Rs 16,89,400.92 crore, representing 63.9% of the initial cost and 53.2% of the total estimated completion cost. According to the statement, a total of Rs 3,70,983.54 crore has been set aside for these 1,897 projects in 2023–2024.

In the third quarter of FY24, the proportion of delayed projects decreased from 56.70 percent in the quarter that ended in December 2022 to 47.55 percent. The cost overrun rate decreased to 20.1% from 21.42 percent. According to several project implementing organizations, delays in land acquisition, gaining approvals related to the environment and forests, and issues with law and order are among the reasons for time overruns.

The paper further attributed the postponement of these projects' execution to state-level lockdowns brought on by COVID-19, which were enforced in 2020 and 2021. It said that while broad price increases were unavoidable, delays might reduce cost increases.