Infra Projects: In the infrastructure sector, the cost of 386 projects with an expenditure of Rs 150 crore or more has increased by more than Rs 4.7 lakh crore from the estimated estimate. It has been said in a report that the cost of these projects has increased due to delays and other reasons.
Cost of 386 projects increased
The Ministry of Statistics and Program Implementation oversees infrastructure projects costing Rs 150 crore or more. The ministry’s July 2022 report states that out of 1505 such projects, 386 have cost overruns, while 661 projects are running late.
Project cost increased by 22.19 percent
According to the report, “The original cost of implementation of these 1,505 projects was Rs 21,21,793.23 crore, but now it is estimated to increase to Rs 25,92,537.79 crore. This shows that the cost of these projects has increased by 22.19 per cent i.e. Rs 4,70,744.56 crore. Percentage is.
Project delay averages more than 41 months
However, the ministry has said that if we look at the recent timelines for completion of projects, the number of delayed projects will come down to 511. By the way, information about the year of commissioning of 581 projects has not been given in this report. The report said that out of 661 delayed projects, 134 projects were delayed by one month to 12 months, 114 projects 13 to 24 months, 289 projects 25 to 60 months and 124 projects were delayed by 61 months or more. . The average delay in these 661 projects is 41.83 months.
These are the main reasons for the delay
The reasons for delay in these projects are delay in land acquisition, delay in getting clearances from environment and forest departments and lack of infrastructure. Apart from these, due to the funding of the project, delay in the implementation of detailed engineering, changes in the prospects of the project, delay in the tender process, delay in award of contracts and procurement of equipment, legal and other problems, unforeseen land changes etc. Projects have been delayed.