443 infra tasks hit by price overrun of ₹4.92 lakh crore in Feb

As many as 443 infrastructure tasks, every entailing an funding of ₹150 crore or above, had been hit by a price overrun of greater than ₹4.92 lakh crore in February 2024, an official report said.

In response to the Ministry of Statistics and Programme Implementation (MoSPI), which displays infrastructure tasks price ₹150 crore and above, out of 1,902 tasks, 443 reported price overruns and 764 tasks had been delayed.

“Whole unique price of implementation of the 1,902 tasks was ₹27,08,030.44 crore, and their anticipated completion price is prone to be ₹32,00,507.55 crore, which displays general price overruns of ₹4,92,477.11 crore (18.19 per cent of unique price),” the Ministry’s newest report for February 2024 stated.

In response to the report, the expenditure incurred on these tasks until February 2024 is ₹16,76,739 crore, which is 52.39 per cent of the anticipated price of the tasks.

“Nonetheless, the variety of delayed tasks decreases to 568 if the delay is calculated on the premise of the most recent schedule of completion,” it added.

Additional, it stated that for 389 tasks, neither the 12 months of commissioning nor the tentative gestation interval has been reported.

Out of the 764 delayed tasks, 188 have general delays within the vary of 1-12 months, 185 have been delayed for 13-24 months, 275 tasks for 25-60 months, and 116 tasks have been delayed for greater than 60 months.

The typical time overrun in these 764 delayed tasks is 36.27 months.

Causes for time overrun, as reported by challenge implementing companies, embrace delay in land acquisition, acquiring forest and atmosphere clearances, and lack of infrastructure assist and linkages.

Delays in tie-up for challenge financing, finalisation of detailed engineering, change in scope, tendering, ordering and tools provide, and regulation and order issues are amongst different causes.

The report additionally cited state-wise lockdowns on account of Covid-19 (imposed in 2020 and 2021) as a cause for the delay in implementation of those tasks.

“It has additionally been noticed that challenge executing companies should not reporting revised price estimates and commissioning schedules for a lot of tasks, which suggests that point/price overrun figures are under-reported,” it added.