Cost overrun share rises slightly in November but stays below the 18% mark
government infrastructure projects stayed below the 18% mark for the second month in a row in November, according to data released by the government.
Cost overruns rose slightly to 17.5% in November, compared with 17.4% in the previous month—the lowest value in nearly four years.
However, the number of projects running behind schedule further declined to 46.1% from 46.6% in the previous month, and so did the average time overrun.
The number of central government projects under valuation rose to 1,831 in November from 1,788 in the previous month, as it added 58 new projects in November, most of which belonged to the road sector.
Meanwhile, 11 projects were completed during this month. A total of 845 projects were delayed with respect to the original schedule, and another 152 were additionally delayed.
“Of these 152 projects, 41 are Mega Projects costing Rs 1000 crore and above,” the report noted.
The government tracks projects with a value of Rs 150 crore and above.
Of the 1,831 projects, 421 projects faced cost overruns, leading to the overall anticipated cost of all projects (Rs 29.51 lakh crore) monitored on the portal exceeding the original cost by Rs 4.4 lakh crore.
Among the delayed projects, 52% were delayed for over two years, with 14% delayed for over half a decade.
The government counts delays in land acquisition, environmental clearances, lack of infrastructure support & linkages, and tie-ups for project financing as significant reasons for delays.
Railways accounted for the most delayed projects, with some delayed for nearly 20 years.
The Uddhampur-Srinagar-Baramulla project was first commissioned in 1995 and is due for completion in February 2024.
