Amidst ongoing challenges in India’s infrastructure landscape, a staggering 443 infrastructure projects, each with an investment of ₹150 crore or more, encountered a cost overrun surpassing ₹4.92 lakh crore
in February 2024, according to an official report released by the Ministry of Statistics and Programme Implementation (MoSPI). The report, which scrutinises infrastructure ventures valued at ₹150 crore and above, revealed that out of a total of 1,902 projects under evaluation, 443 reported cost overruns while 764 projects faced delays in their execution. The original cost projection for these 1,902 projects was ₹27,08,030.44 crore, but the anticipated completion cost is now estimated at ₹32,00,507.55 crore, reflecting an overall cost overrun of ₹4,92,477.11 crore, equivalent to 18.19% of the original cost. Up to February 2024, approximately ₹16,76,739 crore had been expended on these projects, constituting 52.39% of the projected project cost. However, the number of delayed projects decreases to 568 when considering delays based on the latest completion schedule.
The report further delineated that 389 projects lacked either the year of commissioning or the tentative gestation period. Delving into the specifics of project delays, the report highlighted that 188 projects experienced delays ranging from 1 to 12 months, 185 projects were delayed by 13 to 24 months, while 275 projects faced delays between 25 to 60 months. Alarmingly, 116 projects were delayed for over 60 months, with an average time overrun of 36.27 months across all delayed projects. Various factors contributed to these delays, including challenges in land acquisition, obtaining necessary clearances, inadequate infrastructure support, and disruptions caused by the Covid-19 lockdowns imposed in 2020 and 2021. Moreover, the report raised concerns regarding under-reporting of time and cost overruns by project executing agencies, emphasising the need for improved transparency and accountability in project monitoring and reporting mechanisms.
