449 Infra Projects Hit with Cost Overruns of Rs 5.01 Lakh Crore in March: Govt Data

New Delhi: In March 2024, 449 infrastructure projects, each entailing an investment of Rs 150 crore or more, experienced cost overruns totaling more than Rs 5.01 lakh crore, according to the Ministry of Statistics and Programme Implementation (MoSPI).

Out of 1,873 monitored projects, 779 were delayed, while the expenditure incurred until March 2024 amounted to 53.68% of the anticipated costs.

"Total original cost of implementation of the 1,873 projects was Rs 26,87,535.69 crore and their anticipated completion cost is likely to be Rs 31,88,859.02 crore, which reflects overall cost overrun of Rs 5,01,323.33 crore (18.65% of original cost)," the ministry's latest report for March 2024 said, news agency PTI reported.

The average time overrun in these 779 delayed projects is 36.04 months.

Out of the 779 delayed projects, 202 have overall delays in the range of one to 12 months, 181 have been delayed for 13 to 24 months, 277 projects for 25 to 60 months, and 119 projects have been delayed for more than 60 months.

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The report highlighted that delays were attributed to various factors such as land acquisition, environmental clearances, and infrastructure support.

Delays in tie-up for project financing, finalisation of detailed engineering, change in scope, tendering, ordering and equipment supply, and law and order problems are among other reasons, the report added.

Additionally, state-wise lockdowns due to the COVID-19 pandemic were cited as contributing to project delays. It was noted that many project executing agencies were not reporting revised cost estimates and commissioning schedules, indicating potential under-reporting of time/cost overruns.

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