New Delhi: Cost overrun is not uncommon in India especially in case of big-ticket projects. The worrying point, however, is that cost overrun is to the tune of Rs 3.2 lakh crore taking 347 big infrastructure projects under construction.
Of the 1443 projects across the country, 347 reported cost overruns and 360 time escalation.
The figures have emerged from a Ministry of Statistics and Programme Implementation report. The ministry monitors infrastructure projects worth Rs 150 crore and above.
According to the report, the expenditure incurred on these projects till November 2018 is Rs 7,97,496.44 crore, which is 37.07 per cent of the anticipated cost of the projects.
For the 710 projects, neither the year of commissioning not the tentative gestation period has been reported. Out of 360 delayed projects, 106 have overall delay in the range of 1 to 12 months, 60 are delayed by 13 to 24 months, 93 reflect the delay of 25 to 60 months and 101 projects show 61 months and above delay.
The average time overrun in these 360 delayed projects is 44.43 months.
The brief reasons for time overruns, as reported by various project implementing agencies, are delays in land acquisition, forest clearance and supply of equipment.
Besides, there are are other reasons like fund constraints, geological surprises, geo-mining conditions, slow progress in civil works, shortage of labour, inadequate mobilisation by the contractor, Maoist problems, court cases, contractual issues, ROU/ROW (right of use/right of way) problems, law and order situation, among others.
It also observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time/cost overrun figures are unde reported.
(With agency inputs)
