Infrastructure Project: Cost over Rs 4.83 lakh crore Impact 425 Infrastructure

According to a report, 425 infrastructure projects, each with an investment of Rs 150 crore or more, cost more than Rs 4.83 lakh crore.

According to the Ministry of Statistics and Program Implementation, which monitors infrastructure projects worth Rs 150 crore or more, out of 1,579 projects, the cost of 425 projects has increased and 664 projects have been delayed.

“The total total cost of implementation of 1,579 projects was Rs 21,95,196.72 crore and their expected completion cost could be Rs 26,78,365.62 crore, reflecting the total expenditure of Rs 4,83,168.90 crore (22.01 per cent of the original expenditure),” the ministry said in a statement. The latest report says.

As per the report, the expenditure on these projects till March 2022 is Rs 13,88,760.73 crore, which is 51.85 per cent of the expected expenditure of the projects.

However, the number of delayed projects dropped to 561, if calculated on the basis of the latest schedule of delays.

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Further, the commission year for 606 projects or the period of temporary pregnancy was not reported.

Of the 664 delayed projects, 94 were delayed for 1-12 months, 124 for 13-24 months, 331 for 25-60 months and 115 for 61 months or more.

The average duration of this 664 delayed project was 42.41 months.

Delays in land acquisition, delays in obtaining forest and environmental clearances, and lack of infrastructural support and connectivity are among the reasons for delays, according to reports from various project implementing agencies.

Other reasons include delay in tie-up for project financing, delay in detailed engineering finalization, change of scope, delay in tendering, ordering and supply of equipment and problems with law and order.

The report also cites statewide lockdowns due to COVID-19 as the reason for delays in implementation of these projects.

It has also been observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time / cost figures are under-reported.

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