Of the 1,897 projects, 448 projects had a cost overrun of Rs 5,55,352.41 crore, which is 65.2 percent of their sanctioned cost. Around 56 projects were ahead of schedule, 632 projects were on schedule, and 902 projects were delayed, according to QPISR data
The percentage of delayed projects reduced to 47.55 percent in the third quarter of FY24 from 56.70 percent in the third quarter ended December 2022
As many as 448 infrastructure projects, each entailing an investment of Rs 150 crore or above, were hit by cost overruns of more than Rs 5.55 lakh crore during the December quarter of 2023, according to a government report.
The Quarterly Project Implementation Status Report (QPISR) on Central Sector Projects (costing Rs 150 crore and above) for the third quarter of 2023-24, contains detailed information on 1,897 projects. The QPISR is prepared by the Ministry of Statistics and Programme Implementation.
Of the 1,897 projects, 448 projects had a cost overrun of Rs 5,55,352.41 crore, which is 65.2 percent of their sanctioned cost, PTI reported citing the report.
The report stated that with regard to the latest approved cost, 292 projects had reported a cost overrun of Rs 2,89,699.46 crore, while 276 projects are having both time and cost overruns.
Of 1,897 projects, 56 projects were ahead of schedule, 632 projects were on schedule, and 902 projects were delayed concerning the original schedule of completion. Moreover, the report stated that for 307 projects, either the original or the anticipated date of completion was not reported or had lapsed.
The anticipated completion cost of these 1,897 projects is reported to be Rs 31,74,489.91 crore. The total expenditure as of December 31, 2023, was Rs 16,89,400.92 crore, which works out to 53.22 percent of the total anticipated completion cost and 63.9 percent of the original cost. For these 1,897 projects, a total outlay of Rs 3,70,983.54 crore has been allocated for 2023-24, it stated.
The percentage of delayed projects reduced to 47.55 percent in the third quarter of FY24 from 56.70 percent in the third quarter ended December 2022. The percentage of cost overrun was also reduced from 21.42 percent to 20.1 percent.
Reasons for time overrun, as reported by various project implementing agencies, include delay in land acquisition, obtaining forest and environment clearances and law and order problems.
The report also cited state-wise lockdowns due to COVID-19 (imposed in 2020 and 2021) as a reason for the delay in implementation of these projects. While the cost overruns due to general price escalation could not be avoided, the cost escalation on account of delay could be minimized, it stated.
