infrastructure sector The cost of 449 projects costing Rs 150 crore or more has increased by more than Rs 5.01 lakh crore from the estimate fixed in March 2024. A report says that the cost of these projects has increased due to delays and other reasons. The Ministry of Statistics and Program Implementation monitors infrastructure projects costing Rs 150 crore or more. The ministry’s March 2024 report said that out of 1,873 such projects, 449 have had cost overruns, while 779 projects are delayed.
Cost of projects increased by 18.65 percent
According to the report, the original cost of implementation of these 1,873 projects was Rs 26,87,535.69 crore but now it is estimated to increase to Rs 31,88,859.02 crore. This shows that the cost of these projects has increased by 18.65 percent i.e. Rs 5,01,323.33 crore. According to the report, Rs 17,11,648.99 crore has been spent on these projects till March 2024, which is 53.68 percent of the total estimated cost. However, the ministry has said that if we look at the recent timelines for completion of the projects, the number of delayed projects will come down to 567. The time of commissioning of 393 projects is not mentioned in the report.
These reasons for delay in project work
The main reasons for delay in these projects are delay in land acquisition, delay in getting approvals from Environment and Forest Department and lack of infrastructure. Apart from this, due to financing of the project, delay in materializing the detailed engineering, change in the possibilities of the project, delay in the tender process, delay in awarding contracts and procuring equipment, legal and other problems, unexpected land changes etc. Projects have been delayed.
Average time limit increased by 36 months
Of the 779 projects that are delayed, 202 projects are delayed by one month to 12 months, 181 projects by 13 to 24 months, 277 projects by 25 to 60 months and 119 projects by more than 60 months. The average delay in these 779 projects is 36.04 months.
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