Cost overrun for 287 infrastructure projects hits Rs1.66 trillion
- Cut in fees for smelters is a risk for domestic copper producers
- No ripple in bank stocks ahead of second wave of provisioning
- With deposits contracting and lending going up, why should banks lower interest rates?
- Opening bell: Asian markets open subdued; Tata Communications, EIH in news
- Want to short bitcoin, anyone?
New Delhi: As many as 287 infrastructure projects worth Rs150 crore or above each, including those delayed due to various issues, have seen a cost overrun of Rs1.66 trillion. Total original cost of implementation of 1,186 projects was Rs14.60 trillion and their anticipated completion cost is likely to be Rs16.26 trillion, which reflects cost overrun of Rs1.66 trillion (11.39% of the original cost), said the statistics ministry’s latest flash report for December 2016.
The 1,186 projects in question include 287 that reported cost overrun and 336 time escalation. “In April 2016, out of 1,061 projects on the monitor of this ministry, 241 reported cost and 326 time overrun while during December 2016, out of 1,186 projects, 287 reported cost and 336 time overrun,” it added.
The flash report provides details on the status of the 1,186 central infrastructure projects that cost Rs150 crore and above.
The ministry of statistics and programme implementation keeps track of such projects on time and cost overruns through its online computerisation monitoring system (OCMS) based on information provided by project implementation agencies.
According to the report, the expenditure incurred on these projects till December 2016 is Rs6.94 trillion, that is 42.67% of the anticipated cost.
In comparison to April 2016, the number of projects reporting cost overrun has increased to 24.20% from 22.71% earlier whereas those facing time delay are down to 28.33%, from the previously 30.73%.
For December, of the 1,186 projects, 336 are delayed in respect of the original schedule and 78 reported additional delay with reference to the previous month. Of these 78, 34 are mega ones that are worth Rs1,000 crore and above, it said.
The report attributes the time overrun to a host of issues including delay in land acquisition, forest clearance, supply of equipment, funds constraints, the Maoist incursion, legal cases and law and order situation.