The Parliamentary Standing Committee on Commerce has raised concerns about a significant shortfall in the budgetary allocation of over Rs 1,900 crore by the finance ministry to the industry department, according to a report by the Ministry of Statistics and Programme Implementation (MoSPI). The report reveals that in December 2023, 431 infrastructure projects with an investment of Rs 150 crore or more experienced a cost overrun of more than Rs 4.82 trillion. Out of a total of 1,820 projects, 431 reported cost overruns and 848 projects faced delays. The original cost of these projects was estimated at Rs 25,87,066.08 crore, but the anticipated completion cost is now projected to be Rs 30,69,595.88 crore, indicating an overall cost overrun of Rs 4,82,529.80 crore or 18.65% of the original cost. As of December 2023, Rs 16,26,813.80 crore had been spent on these projects, accounting for 53% of the anticipated cost. The report also highlights that the number of delayed projects decreased to 638 when considering the latest schedule of completion. Additionally, it mentions that 298 projects have not reported their year of commissioning or tentative gestation period. Among the delayed projects, 202 experienced delays of 1-12 months, 200 were delayed for 13-24 months, 323 projects faced delays of 25-60 months, and 123 projects were delayed for over 60 months. On average, the time overrun for these 848 delayed projects was 36.59 months. Various project implementing agencies cited reasons such as delays in land acquisition, obtaining forest and environment clearances, and a lack of infrastructure support and linkages for the time overruns. Other reasons included delays in project financing, finalization of detailed engineering, changes in scope, tendering, ordering and equipment supply, and law and order problems. The report also attributes the delays to state-wise lockdowns imposed due to COVID-19 in 2020 and 2021. Furthermore, it identifies a lack of reporting of revised cost estimates and commissioning schedules for many projects, suggesting that the figures for time/cost overruns may be underreported. The report was last updated on January 28, 2024, at 11:48 AM IST.
As of December, a total of 431 infrastructure projects in India have witnessed a cost overrun of Rs 4.82 trillion. This indicates a significant increase in expenses beyond the initially estimated budgets for these projects. This data highlights the challenges faced in implementing and managing infrastructure developments in the country. Authorities need to address these cost overruns to ensure timely project completion and efficient allocation of resources.
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431 infra projects in India face a cost overrun of Rs 4.82 trillion in December.
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