421 infra projects hit by cost overrun of Rs 4.40 lakh crore in November, says MoSPI

As many as 421 infrastructure initiatives, every entailing an funding of Rs 150 crore or extra, have been hit by price overrun of greater than Rs 4.40 lakh crore in November this yr, an official report stated.

In keeping with Ministry of Statistics and Programme Implementation (MoSPI), which displays infrastructure initiatives price Rs 150 crore and above, out of 1,831 initiatives, 421 reported price overrun and 845 initiatives have been delayed.

“Whole authentic price of implementation of the 1,831 initiatives was Rs 25,10,577.59 crore and their anticipated completion price was…Rs 29,50,997.33 crore, which displays general price overruns of Rs 4,40,419.74 crore (17.54 per cent of authentic price),” the ministry’s newest report for November 2023 stated.

In keeping with the report, the expenditure incurred on these initiatives until November 2023 was Rs 15,58,038.07 crore, which is 52.80 per cent of the anticipated price of the initiatives.

Nevertheless, it acknowledged that the variety of delayed initiatives decreases to 629 if the delay is calculated on the idea of newest schedule of completion. Additional, it stated that for 308 initiatives neither the yr of commissioning nor the tentative gestation interval have been reported.

Out of the 845 delayed initiatives, 204 have general delays within the vary of 1-12 months, 198 have been delayed for 13-24 months, 322 initiatives for 25-60 months, and 121 initiatives have been delayed for greater than 60 months. The common time overrun in these 845 delayed initiatives is 36.64 months.

Causes for time overrun, as reported by numerous venture implementing businesses, embrace delay in land acquisition, in acquiring forest and setting clearances, and lack of infrastructure help and linkages.

Delays in tie-up for venture financing, finalisation of detailed engineering, change in scope, tendering, ordering and tools provide, and regulation and order issues have been among the many different causes.

The report additionally cited state-wise lockdowns on account of COVID-19 (imposed in 2020 and 2021) as a purpose for the delay in implementation of those initiatives.

It has additionally been noticed that venture executing businesses will not be reporting revised price estimates and commissioning schedules for a lot of initiatives, which suggests that point/price overrun figures are under-reported, it added.

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