About 470 infrastructure projects report cost overruns worth Rs 4.38 trillion

According to a report released by the Ministry of Statistics and Programme Implementation, of 1,737 infrastructure projects, 470 reported cost overruns and 525 were delayed. The total original cost of implementation of the 1,737 projects was Rs 22.33 trillion and their anticipated completion cost is likely to be Rs 26.71 trillion, which reflects overall cost overruns of Rs 4.38 trillion, accounting for 19.61 per cent of the original cost. In the 525 delayed projects, the average time overrun is 45.63 months. Land acquisition delays, delays in obtaining environmental clearances, and a lack of infrastructure support and connectivity are among the reasons for the time overruns. Other factors include delays in project financing, tendering, ordering and equipment supply, and law and order difficulties. The report also mentioned state-wise lockdowns due to Covid-19 as a cause behind the projects’ delays.