The Indian government has faced a massive cost overrun of Rs 4.46 lakh crore in 335 infrastructure projects, as reported by the Ministry of Statistics and Programme Implementation. The ministry monitors projects above Rs 150 crore, and as many as 335 projects have been flagged for delays and cost overruns. The additional spending has cost the exchequer a significant amount and raises concerns about India’s infrastructure development plans.
Out of 1,454 projects, 871 projects have reported delays, adding to the already incurred cost overruns. The total original cost of implementing these projects was Rs 20,59,065.57 crore, and the anticipated completion cost is estimated to be Rs 25,05,248.43 crore, reflecting a cost overrun of 21.67% of the original cost.
According to the report, the expenditure incurred on these projects till January 2023 was Rs 13,53,875.70 crore, which is 54.04% of the anticipated cost of the projects.
However, the number of delayed projects decreased to 703 if delay is calculated on the basis of the latest schedule of completion. Further, it showed that for 309 projects neither the year of commissioning nor the tentative gestation period has been reported. Out of the 871 delayed projects, 169 have overall delays in the range of 1-12 months, 157 have been delayed for 13-24 months, 414 projects
The cost overruns and delays have been attributed to several reasons, including problems in land acquisition, delays in environmental clearances, and inadequate planning. The government has set ambitious targets for infrastructure development, including the construction of highways, airports, and ports. Still, the lack of efficient planning and execution has led to significant cost overruns, which could have been avoided.
The report’s findings have sparked concerns about the effectiveness of the government’s infrastructure development plans, with many experts questioning the government’s ability to deliver projects on time and within budget. The cost overruns have also raised concerns about the government’s finances, with the additional spending adding to the country’s debt burden.
The Indian government has been pushing for infrastructure development to revive the country’s economic growth, which has been hit hard by the COVID-19 pandemic. However, the cost overruns and delays have raised questions about the effectiveness of these plans. Experts have called for better planning, execution, and monitoring of projects to avoid cost overruns and delays in the future.
The Ministry of Statistics and Programme Implementation has suggested several measures to improve infrastructure development, including better planning, timely allocation of funds, and a focus on completion rather than just starting projects. The ministry has also recommended the use of technology to monitor project progress and identify potential delays and cost overruns.
It is crucial for the government to address these issues promptly and take corrective measures to avoid similar cost overruns in the future. Infrastructure development is essential for India’s economic growth, and delays and cost overruns will only impede the country’s progress.
The government should take a more pragmatic approach towards infrastructure development and focus on projects that can be completed within budget and on time. The country’s debt burden is already a cause for concern, and additional spending on cost overruns will only exacerbate the problem.
The cost overruns in 335 infrastructure projects have cost the exchequer a significant amount, and the delay in completing these projects has raised concerns about the government’s infrastructure development plans. The government needs to take corrective measures to avoid similar cost overruns in the future and focus on completing projects within budget and on time. Efficient planning, timely allocation of funds, and the use of technology for project monitoring are some of the measures that the government can take to improve infrastructure development in the country.
