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Infrastructure projects worth over Rs 4.37 lakh crore have been hit by cost overruns, according to a report by the Ministry of Statistics and Programme Implementation.
Besides Covid-induces state-wise curbs, the implementing agencies have blamed it on the delay in land acquisition, delay in obtaining environmental clearances, and lack of infrastructure among various reasons for the time overruns.
“Total original cost of implementation of the 1,718 projects was Rs 21,99,181.52 crore and their anticipated completion cost is likely to be Rs 26,36,710.50 crore, which reflects overall cost overruns of Rs 4,37,528.98 crore (19.90 per cent of original cost),” the ministry’s latest report for August 2021 said.
From 1,718 projects, 470 reported cost overruns, each worth Rs 150 crore or more; and 560 were delayed. The expenditure incurred on these projects till August 2021 stood at Rs 12,52,298.40 crore, which is 47.49% of the expected cost of the projects.
Out of the 560 delayed projects, 96 have overall delay in the range of 1-12 months, 128 have been delayed for 13-24 months, 210 for 25-60 months and 126 projects have delays of 61 months and above.
The average time overrun in these 560 delayed projects is 46.94 months.