Delay in 403 Infrastructure Projects Results in Cost Overruns of Rs 4.05 Lakh Crore
Published by : Industrial Automation
At the financial year 2020, there are reported 1,686 infrastructure projects and the total initial cost of implementation for these projects was around Rs 20,66,771.94 crore. Furthermore, the anticipated completion cost for those projects is nearly Rs 24,71,947.66 crore, which reflects the entire cost overruns of 4,05,175.72 crore (19.6% of the initial price).
Of the 1,686 such projects, there are over 403 infrastructure projects that are delayed and result in overruns or 530-time escalation. These 403 infrastructure projects are expected to be worth around Rs 150 crore each. According to the Ministry of Statistics and Programme Implementation's most up-to-date report for FY2020, it is anticipated that these projects are overruns of Rs 4.05 lakh crore owing to delays and other things.
"The Ministry of Statistics and Programme Implementation handles and viewing infrastructure projects value minimum Rs 150 crore"
The ministry noted that the total expenditure suffered because of these projects for FY2020 (April 2019-March 2020) is Rs 11,20,696.16 crore, which will be 45.34% of the expected price of the overall projects. It is estimated and stated which the number of infrastructure jobs declines to 452 when the delay is calculated on the basis of the schedule of the conclusion. What's more, around 857 projects neither the year of commissioning nor the tentative period has been reported at the year.
Out of 530 delayed projects, 155 have an entire delay in the range of 1 to 12 months, 114 have a delay of 13 to 24 months, 148 reflect the delay in the range of 25 to 60 weeks, and 113 projects show a delay of 61 weeks and over.
"The average time overruns specified for 530 postponed projects is 41.16 weeks"
The stalled in document clearance like forest/environment clearances land acquisition, and infrastructure service limitations are the principal factors behind troubles to project implementing agencies and the delay at the job implementation. In addition, the delay in cooperation with companies for project funding and job designing along with the change in scope, delay in tendering, ordering and gear supply, regulation and order problems, geological surprises, pre-commissioning teething troubles, and financial issues among others are other things affecting the operations of the infrastructure projects from the Indian market, in accordance with the report.
The report from the Ministry of Statistics and Programme Implementation is stated that the job handling agencies or companies aren't reporting or upgrading the authority linked to the revised price estimation and commissioning programs for several projects, this anticipated to decrease the credibility of the report data related to time or cost overrun figures.
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