445 infra projects hits cost overrun of Rs 4.4 lakh crore
25 Jan 2022
2 Min Read
CW Team
According to a report, 445 infrastructure projects with an investment of Rs 150 crore each have been hit by cost overruns of over Rs 4.4 lakh crore.
The Ministry of Statistics and Programme Implementation looks into the infrastructure projects of Rs 150 crore or more. Of 1,673 projects, 445 faced cost overruns, and 557 projects were delayed.
The Ministry said that the initial implementation cost of these projects was Rs 22,23,791.78 crore, and their anticipated cost is likely to be Rs 26,64,649.18 crore, with Rs 4,40,857.40 crore cost overruns.
As per the report, the expenditure incurred on these infrastructure projects is Rs 13,08,766.65 crore, which is 49.12% of the anticipated cost of the projects.
The number of delayed projects dropped to 420 if the delay is counted based on the latest schedule of completion.
As many as 838 projects have not been given the year of commissioning nor the tentative gestation period.
From the 557 delayed projects, 97 projects have an overall delay between 1-12 months, 127 projects have been delayed for 13-24 months, 217 projects for 25-60 months and 116 projects for 61 months or more. The average time overrun in these projects is 45.69 months.
Time overruns were due to the issue of land acquisition, delay in forest and environment clearances, lack of infrastructure support and linkages. Other reasons include project financing, delay in finalising detailed engineering, change in scope, delay in the tendering process, ordering and equipment supply, law and order problems and Covid-19 restrictions and state-wise lockdowns.
Also read: China to rollout infra projects to combat economic slowdown
Also read: BRO develops Project Yojak in Himachal Pradesh to boost road infra
According to a report, 445 infrastructure projects with an investment of Rs 150 crore each have been hit by cost overruns of over Rs 4.4 lakh crore.
The Ministry of Statistics and Programme Implementation looks into the infrastructure projects of Rs 150 crore or more. Of 1,673 projects, 445 faced cost overruns, and 557 projects were delayed.
The Ministry said that the initial implementation cost of these projects was Rs 22,23,791.78 crore, and their anticipated cost is likely to be Rs 26,64,649.18 crore, with Rs 4,40,857.40 crore cost overruns.
As per the report, the expenditure incurred on these infrastructure projects is Rs 13,08,766.65 crore, which is 49.12% of the anticipated cost of the projects.
The number of delayed projects dropped to 420 if the delay is counted based on the latest schedule of completion.
As many as 838 projects have not been given the year of commissioning nor the tentative gestation period.
From the 557 delayed projects, 97 projects have an overall delay between 1-12 months, 127 projects have been delayed for 13-24 months, 217 projects for 25-60 months and 116 projects for 61 months or more. The average time overrun in these projects is 45.69 months.
Time overruns were due to the issue of land acquisition, delay in forest and environment clearances, lack of infrastructure support and linkages. Other reasons include project financing, delay in finalising detailed engineering, change in scope, delay in the tendering process, ordering and equipment supply, law and order problems and Covid-19 restrictions and state-wise lockdowns.
Image Source
Also read: China to rollout infra projects to combat economic slowdown
Also read: BRO develops Project Yojak in Himachal Pradesh to boost road infra
Next Story
Kolkata鈥檚 luxury housing market sees price growth amid mixed trends
A new study by Nklusive reveals that Kolkata鈥檚 luxury residential market (Rs 5鈥�10 crore) recorded a 33 per cent year-on-year rise in supply and a 52 per cent increase in sales in calendar year 2024 (CY24). South Kolkata led with 78 per cent of the segment鈥檚 supply. The average price rose by 6 per cent鈥攆rom Rs 17,519 to Rs 18,600 per sq ft鈥攚hile unsold inventory grew by 15 per cent. Monthly absorption improved from 2 to 3 units.In contrast, the ultra-luxury segment (Rs 10 crore and above) experienced a 17 per cent decline in supply and a 30 per cent fall in sales. Central Kolkata acco..
Next Story
New Expressway to Cut Pune-Bengaluru Travel Time by Half
The upcoming Pune-Bengaluru Expressway is expected to significantly improve connectivity and economic opportunities across Maharashtra and Karnataka. This 700-kilometre greenfield, access-controlled highway will cut the travel time between Pune and Bengaluru from 15 hours to just 7 hours, facilitating easier movement for both commuters and businesses. Starting from Bommanal in Karnataka鈥檚 Athani Taluk, the expressway will traverse important districts such as Belagavi, Bagalkot, and Jamakhandi. It will then enter Maharashtra at Kanjle, connect with the proposed Pune Ring Road, and pass throug..
Next Story
Nagpur鈥檚 Koradi Naka to Get Y-Shaped Flyover for Safer, Smoother Traffic
To alleviate traffic congestion and enhance safety at Koradi Naka in Nagpur, a Y-shaped flyover is currently being constructed on National Highway 47. Demolition work has already commenced, with the main construction scheduled to start on June 20, 2025.The project, costing Rs 430.37 billion, involves building a 1,090-meter-long flyover that will connect Farsa, the Mahadula Railway Overbridge (ROB), and Bokhara Road, and will also feature an underpass. The existing structure will be repurposed into a service road to facilitate local traffic.Koradi Naka has been identified as a significant "blac..
