The Ministry of Statistics and Programme Implementation (MoSPI) has revealed that 411 major infrastructure projects in India, each with an investment of Rs 150 crore or more, are facing cost overruns exceeding Rs 4.31 lakh crore as of October 2023. The original cost of these projects was projected at Rs 24,78,446.60 crore, but the estimated completion cost has risen to Rs 29,09,526.63 crore, indicating an overall cost overrun of approximately 17.39%. The report also notes delays in 837 projects, with an average delay of 36.94 months. Timely clearances, improved project management, and coordination among stakeholders are essential to address these challenges.
In a significant revelation, the Ministry of Statistics and Programme Implementation (MoSPI) disclosed that as of October 2023, a staggering 411 major infrastructure projects in India are grappling with cost overruns exceeding Rs 4.31 lakh crore. Each of these projects involves an investment of Rs 150 crore or more. The ministry monitors projects valued at Rs 150 crore and above and looks into almost 1,788 projects. Of these, a notable 411 projects experienced cost overruns, while 837 faced delays in completion. The original cost for executing these 1,788 projects was projected at Rs 24,78,446.60 crore. However, the anticipated completion cost has now escalated to an estimated Rs 29,09,526.63 crore. This surge indicates an overall cost overrun of Rs 4,31,080.03 crore, which is approximately 17.39% of the initially planned expenditure. By October 2023, the expenditure on these projects had reached Rs 15,27,102.91 crore, accounting for 52.49% of their revised total cost. Interestingly, the report suggests a reduction in the number of delayed projects to 628 when considering the latest completion schedules. A deeper dive into the data reveals that, of the 837 delayed projects, 202 encountered delays ranging from 1 to 12 months, 188 were delayed by 13 to 24 months, 324 projects faced delays of 25 to 60 months, and 123 projects were delayed by over 60 months. The average delay across these projects stood at 36.94 months. The reasons for these delays are manifold. Key factors include delays in land acquisition, in obtaining necessary environmental and forest clearances, and challenges in securing infrastructure support and linkages. Other contributing factors are delays in project financing arrangements, finalizing detailed engineering plans, changes in project scope, tendering processes, ordering and supplying equipment, and law and order issues. The report also pointed out the impact of state-wise lockdowns during the COVID-19 pandemic in 2020 and 2021, which further delayed the project. An alarming aspect of the report is the observation that many project executing agencies have not updated the revised cost estimates and commissioning schedules for several projects. This lapse suggests that the actual figures for time and cost overruns might be even higher than reported. In conclusion, this revelation of cost overruns and delays in major infrastructure projects highlights the complexities and challenges in project execution in India. It underscores the need for more efficient project management, timely clearances, and better coordination among various stakeholders to keep these vital projects on track and within budget. Addressing these issues is crucial for the nation's economic growth and development.
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