Cost Overrun For 287 Infra Projects Hits Rs 1.66 Lakh Crore

Cost Overrun For 287 Infra Projects Hits Rs 1.66 Lakh Crore

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New Delhi: A cost overrun of Rs 1.66 lakh crore has been seen in as many as 287 infrastructure projects worth Rs 150 crore or above each, including those delayed due to various issues.

According to the statistics ministry’s  the latest flash report for December 2016 states, out of the 1,186 projects the total original cost of implementation was Rs 14,60,099.70 crore and their anticipated completion cost is likely to be Rs 16,26,445.47 crore, which shows a cost overrun of Rs 1,66,345.77 crore (11.39 per cent of the original cost).

The 1,186 number of projects in question include 287 that reported cost overrun and 336 time escalation.

“In April 2016, out of 1,061 projects on the monitor of this ministry, 241 reported cost and 326 time overrun while during December 2016, out of 1,186 projects, 287 reported cost and 336 time overrun,” it added.

Details are provided for the flash report on the status of the 1,186 central infrastructure projects that cost Rs 150 crore and above.

Based on information provided by project implementation agencies a track is kept by the Ministry of Statistics and Programme Implementation so that such projects are on time and it also keeps a track on the cost overruns through its online computerisation monitoring system (OCMS).

Till December 2016, according to the report, these projects have incurred an expenditure of Rs 6,94,056.07 crore, that is 42.67 per cent of the anticipated cost.

As compared to April 2016, cost overrun has been reported by a number of projects and has made an increase to 24.20 per cent from 22.71 per cent earlier whereas those facing time delay are down to 28.33 per cent, from the previously 30.73 per cent.

For December, of the 1,186 projects, there has been a delay in 336 in respect of the original schedule and with reference to the previous month 78 reported additional delay. Of these 78, 34 are mega ones that are worth Rs 1,000 crore and above, it said.

The report states a time overrun to a number of issues which include delay in land acquisition, forest clearance, supply of equipment, funds constraints, the Maoist incursion, legal cases and law and order situation.

News Source: economictimes.indiatimes.com

Picture Source: google.co.in

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