373 infra projects show cost overruns of Rs 3.89 lakh cr

New Delhi, December 8 () Up to 373 infrastructure projects, each with a value of Rs 150 crore or more, are affected by cost overruns of more than Rs 3.89 lakh crore due to delays and other reasons, according to a report.

The Ministry of Statistics and Program Implementation monitors infrastructure projects worth Rs 150 crore and above.

Of those 1,634 projects, 373 projects reported cost overruns and 552 time escalation projects.

The original total cost of implementation of the 1,634 projects was Rs 19,40,699.03 crore and its anticipated completion cost is probably Rs 23,29,746.02 crore, reflecting a total cost of Rs 3,89,046.99 rupees (20.05 percent of the original cost), said the ministry's latest report for August 2019.

According to the report, the expense incurred in these projects until August 2019 is Rs 9,75,180.06 rupees, which is 41.85 percent of the anticipated cost of the projects.

However, he said, the number of delayed projects decreased to 489 if the delay is calculated based on the last completion schedule.

In addition, he said that for 687 projects, neither the year of commissioning nor the period of provisional pregnancy has been reported.

Of 552 delayed projects, 181 projects have a general delay in the range of 1 to 12 months, 128 projects of 13 to 24 months, 127 projects reflect a delay in the range of 25 to 60 months and 116 projects show a delay of 61 months and more.

The average time of these 552 delayed projects is 38.89 months.

The brief reasons for the excess of time, as reported by several executing agencies of the project, are delays in the acquisition of land, logging and provision of equipment.

In addition, there are other reasons such as funding restrictions, geological surprises, geographical mining conditions, slow progress in civil works, labor shortages, inadequate mobilization by the contractor, Maoist problems, court cases, contractual problems, ROU/ROW (right of use/right of way) problems, situation of law and order, among others, according to the report. He also noted that project agencies do not report revised cost estimates and start-up schedules for many projects, suggesting that the excess time/cost figures are underestimated. KKS MR