445 infrastructure projects hit by cost overruns totalling more than Rs4.4 lakh crore: govt.

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 445 infrastructure projects hit by cost overruns totalling more than Rs4.4 lakh crore: govt.

As many as 445 infrastructure projects, each involving investment of Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.4 lakh crore, according to a report. The Ministry of Statistics and Programme Implementation monitors infrastructure projects of Rs 150 crore and above. 445 projects reported cost overruns and 557 projects were delayed, according to 1,673 of these projects.

The total cost of implementation of 1,673 projects was Rs 22,23, 791.78 crore and their anticipated completion cost is likely to be Rs 26,64, 649.18 crore, which is a total cost overrun of Rs 4,40, 857.40 crore and 19.82% of the original cost of the 1,673 projects, the ministry's latest report for December 2021 said.

The report said that the expenditure incurred on these projects is from December 2021 to 13,08, 766.65 crore, which is 49.12 per cent of the anticipated cost of the projects.

The number of delayed projects decreases to 420 if delay is calculated on the basis of the latest schedule of completion.

There has not been a report on the year of commissioning or the tentative gestation period for 838 projects.

97 projects have a delayed deadline of 1/12 months, 127 projects have been delayed for 13-24 months, 217 projects are delayed for 25-60 months and 116 projects have delays of 61 months and above.

The average time overrun in these 557 delayed projects is 45.69 months.

There are a number of reasons for time overruns, including delay in land acquisition, delay in obtaining forest and environment clearances, and lack of infrastructure support and linkages, reported by various project implementing agencies.

Delay in tie-up for project financing, delay in finalization of detailed engineering, change in scope, delay in ordering and equipment supply, and law and order problems are among the other reasons.

The report cited state-wise lockdowns due to COVID 19 as a reason for the delay in implementation of these projects.

It has been observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which indicates that time cost overrun figures are under-reported, it added.