101 infra projects report cost overrun of Rs.1.29 lakh crore
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New Delhi: As many as 101 infrastructure projects have reported cost overrun of Rs.1.29 lakh crore, says official data.
The statistics ministry monitored 286 infrastructure projects, each worth Rs.1,000 crore or more across sectors such as power, railways and roads in April 2016.
“The total original cost of the 286 projects was about Rs.9,40,160.86 crore, and the latest reported anticipated completion cost is Rs.10,69,547.02 crore, which reflects an overall cost overrun of Rs.1,29,386.16 crore,” according to the latest report for April.
As per the report, of the 286 projects, 2 projects are ahead of schedule, 54 are on schedule, 123 delayed and 101 projects reported cost overruns and 41 projects reported both time and cost overruns with respect to their original project schedules.
During the reference month, of the 286 projects, 123 projects overran their original schedule and 31 reported additional delays vis-à-vis the date of completion reported in the previous month (March 2016).
According to the report, projects in power, petroleum, urban development, and road transport and highways sectors suffered additional delays in the range of 1-13 months.
It said the expenditure incurred on these projects till April is Rs.4,57,160.26 crore.
Out of 286 projects, 101 projects have cost overruns with respect to original cost. Cost overrun of these is 101.72% while during the last month, it was 103.84% in 100 projects out of 278 monitored projects.
In comparison with the last month, the number of projects reporting cost overruns decreased from 35.97% to 35.31%, the report said.
Out of 123 delayed projects, 22 projects have overall delay in the range of 1-12 months, 18 projects have delay in the range of 13-24 months, 59 projects have delay in the range of 25-60 months and 24 projects have delay of 61 months and above.
During April, there are 117 projects which are showing time overruns of more than 6 months and 99 projects which are having cost overruns of more than Rs.100 crore and 40 projects are having both time overruns of more than 6 months and cost overruns of more than Rs.100 crore.
Speedy implementation of projects assumes significance in view of government’s push to move towards high growth trajectory of over 8% and touch double-digit mark over the next few years.