Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
In a significant revelation, the Ministry of Statistics and Programme Implementation (MoSPI) disclosed that as of October 2023, a staggering 411 major infrastructure projects in India are grappling with cost overruns exceeding Rs 4.31 lakh crore. Each of these projects involves an investment of Rs 150 crore or more. The ministry monitors projects valued at Rs 150 crore and above and looks into almost 1,788 projects. Of these, a notable 411 projects experienced cost overruns, while 837 faced delays in completion. The original cost for executing these 1,788 projects was projected at Rs 24,78,446.60 crore. However, the anticipated completion cost has now escalated to an estimated Rs 29,09,526.63 crore. This surge indicates an overall cost overrun of Rs 4,31,080.03 crore, which is approximately 17.39% of the initially planned expenditure. By October 2023, the expenditure on these projects had reached Rs 15,27,102.91 crore, accounting for 52.49% of their revised total cost. Interestingly, the report suggests a reduction in the number of delayed projects to 628 when considering the latest completion schedules. A deeper dive into the data reveals that, of the 837 delayed projects, 202 encountered delays ranging from 1 to 12 months, 188 were delayed by 13 to 24 months, 324 projects faced delays of 25 to 60 months, and 123 projects were delayed by over 60 months. The average delay across these projects stood at 36.94 months. The reasons for these delays are manifold. Key factors include delays in land acquisition, in obtaining necessary environmental and forest clearances, and challenges in securing infrastructure support and linkages. Other contributing factors are delays in project financing arrangements, finalizing detailed engineering plans, changes in project scope, tendering processes, ordering and supplying equipment, and law and order issues. The report also pointed out the impact of state-wise lockdowns during the COVID-19 pandemic in 2020 and 2021, which further delayed the project. An alarming aspect of the report is the observation that many project executing agencies have not updated the revised cost estimates and commissioning schedules for several projects. This lapse suggests that the actual figures for time and cost overruns might be even higher than reported. In conclusion, this revelation of cost overruns and delays in major infrastructure projects highlights the complexities and challenges in project execution in India. It underscores the need for more efficient project management, timely clearances, and better coordination among various stakeholders to keep these vital projects on track and within budget. Addressing these issues is crucial for the nation's economic growth and development.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
We use cookies to give you the best possible service while using our website, please click accept and carry on browsing if you're happy with this. For more information see our Privacy Policy.
Okay, Got it!This disclaimer ("Disclaimer") is applicable to the entire Site. Upon entering the Site it is recommended that you immediately read the Terms and Conditions and Privacy Policy listed therein. Your continued usage of this Site will indicate your unconditional acceptance of the said Terms and Conditions and Privacy Policy. You hereby agree that Propscience reserves the right to modify at any time, the Terms and Conditions and Privacy Policy governing this Site without prior notification. Your usage of the Site implies that you will be bound by any such modification. You agree and acknowledge that it is your responsibility to periodically visit the Site and stay updated with the Terms and Conditions and Privacy Policy of the Website.
The information contained in this Site has been provided by Propscience for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Propscience will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 ("RERA") and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Propscience accepts no responsibility for keeping the information in this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Propscience does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention to third party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Propscience accepts no responsibility for the content, reliability and information provided on these third-party websites. Propscience will not be held liable for any personal information of data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Propscience is not liable for the same. All details regarding a project/property provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. To find out more about a project / development, please register/contact us to visit the site you are interested in. All decisions taken by you in this regard will be taken independently and Propscience will not be liable for any such loss in connection with the same. This Site is for guidance only. Your use of this Site - including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional - client relationship between you and Propscience. Propscience cannot accept you as a client until certain formalities and requirements are met.
We use cookies to give you the best possible service while using our website, please accept it and continue browsing if you're happy with this. For more information see our Privacy Policy