In February 2024, 443 infrastructure projects had a 4.92 lakh crore cost overrun

According to an official estimate, in February 2024, there were 443 infrastructure projects with a total expenditure of at least Rs 150 crore that had cost overruns of more than Rs 4.92 lakh crore.

443 of the 1,902 projects that the Ministry of Statistics and Programme Implementation (MoSPI) oversees, with a budget of at least Rs 150 crore, reported cost overruns, while 764 of the projects were delayed.

“Total original cost of implementation of the 1,902 projects was Rs 27,08,030.44 crore, and their anticipated completion cost is likely to be Rs 32,00,507.55 crore, which reflects overall cost overruns of Rs 4,92,477.11 crore (18.19 per cent of original cost),” stated the ministry’s most recent report for February 2024.

As to the study, the total amount of money spent on these projects up till February 2024 is Rs 16,76,739 crore, which represents 52.39% of the projects’ estimated cost.

However, if the delay is determined using the most recent completion timetable, the number of delayed projects drops to 568, it said.

It also said that 389 projects lacked information about the anticipated gestation time and the year of commissioning.

Of the 764 projects that have been postponed, 188 have been delayed for a total of 1 to 12 months, 185 for 13 to 24 months, 275 for 25 to 60 months, and 116 for more than 60 months.

36.27 months is the average time overrun for these 764 delayed projects.

Various project implementing agencies have indicated that delays in land acquisition, gaining approvals related to the environment and forests, and a lack of infrastructural support and connectivity are among the reasons for schedule overruns.

Among the other causes include delays in securing project funding, incomplete detailed engineering, scope changes, bidding, ordering and equipment delivery, and issues with law and order.

The study also attributed the delay in these projects’ completion to state-level lockdowns brought on by COVID-19, which were implemented in 2020 and 2021.

Additionally, it noted that many projects’ updated cost estimates and commissioning timelines are not being provided by project executing agencies, which raises the possibility that time and cost overrun statistics are being underreported.