Cost of 458 infrastructure projects in the country increased by Rs 5.71 lakh crore, know why
The cost of 458 projects in the infrastructure sector costing Rs 150 crore or more has increased by more than Rs 5.71 lakh crore from the estimated cost till May this year. A report said that the cost of these projects has increased due to delays and other reasons. The Ministry of Statistics and Program Implementation monitors infrastructure projects costing Rs 150 crore or more.
Due to this the cost of the project increased
The main reasons for delay in these projects are delay in land acquisition, delay in getting approvals from Environment and Forest Department and lack of infrastructure. Apart from this, due to financing of the project, delay in materializing the detailed engineering, change in the possibilities of the project, delay in the tender process, delay in awarding contracts and procuring equipment, legal and other problems, unexpected land changes etc. Projects have been delayed.
831 other projects are running late
The ministry’s May 2024 report said that out of 1,817 such projects, 458 had cost overruns, while 831 other projects were delayed. According to the report, “The original cost of implementation of these 1,817 projects was Rs 27,58,567.23 crore but now it is estimated to increase to Rs 33,29,647.99 crore. This shows that the cost of these projects has increased by 20.70 percent i.e. Rs 5,71,080.76 crore.” According to the report, till May 2024, Rs 17,07,190.15 crore has been spent on these projects, which is 51.3 percent of the total estimated cost. Is the percentage.
Many projects are delayed by more than 60 months
However, the ministry has said that if we look at the recent timelines for completion of the projects, the number of delayed projects will come down to 554. The report said that out of the 831 projects that are delayed, 245 projects are delayed by one month to 12 months, 188 projects are delayed by 13 to 24 months, 271 projects are delayed by 25 to 60 months and 127 projects are delayed by more than 60 months. The average delay in these 831 projects is 35.1 months.
