The report also cited the state-wise lockdown due to COVID-19 as the reason for the delay in implementation of these projects.
According to a report, 438 infrastructure projects, each costing ₹150 crore or more, have been affected due to cost escalation, with a total cost of over ₹4.3 lakh crore.
The Ministry of Statistics and Program Implementation oversees infrastructure projects worth ₹150 crore and above.
Out of 1,670 such projects, 438 reported cost overruns and 563 were delayed.
“The total original cost of implementation of the 1,670 projects was Rs 21,66,048.11 crore and their estimated completion cost is likely to be Rs 25,96,907.70 crore, showing a total cost escalation of Rs 4,30,859.59 crore (19.89 per cent of the original cost)” The ministry’s latest report for September 2021 said.
According to the report, ₹12,54,512.40 crore has been spent on these projects till September 2021, which is 48.31 per cent of the estimated cost of the projects.
However, the report said that the number of delayed projects comes down to 380 if the delay is calculated based on the latest schedule of completion.
In addition, neither the year of commissioning nor the expected construction period has been reported for 808 projects.
Out of 563 delayed projects, 100 have delays of 1-12 months, 120 13-24 months, 216 25-60 months and 127 projects 61 months and above.
The average time taken for these 563 delayed projects is 47 months.
Reasons for overruns reported by various project implementing agencies include delays in land acquisition, delays in obtaining forest and environment clearances, and lack of infrastructure support and linkages.
Delays in tie-up for project funding, delays in finalizing detailed engineering, changes in scope, delays in tendering, orders and equipment supplies, and law and order problems are among other reasons.
The report also cited the state-wise lockdown due to COVID-19 as the reason for the delay in implementation of these projects.
It has also been observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which shows that the time/cost escalation figures are under-reported.
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