In a recent report released by the Ministry of Statistics and Programme Implementation in August this year, the grim reality of India’s infrastructure projects was brought to light. Startlingly, 412 projects, each requiring an investment of Rs 150 crore or more, are plagued by massive cost overruns exceeding Rs 4.77 lakh crore. The ministry is responsible for overseeing projects with budgets of Rs 150 crore and beyond.
Out of a total of 1,762 scrutinized infrastructure projects, a disconcerting 412 projects reported cost overruns, while an additional 830 projects suffered from significant delays. The original projected cost of executing all 1,762 projects amounted to Rs 25,01,400.62 crore. However, the anticipated completion cost has ballooned to approximately Rs 29,78,681.31 crore, resulting in an alarming overall cost overrun of Rs 4,77,280.69 crore, equivalent to a staggering 19.08% of the initial cost.
Escalating Costs and Project Delays
The report also highlights that the expenditure incurred on these projects until August 2023 stood at Rs 15,57,188.10 crore, representing 52.28% of the expected project costs. Nevertheless, the number of delayed projects reduced to 624 when assessed based on the latest scheduled completion dates.
Regenerate
