What’s the story
In May, 458 infrastructure projects across India experienced a cummulative cost overrun of ₹5.71 lakh crore, as reported by the Ministry of Statistics and Programme Implementation (MoSPI).
The ministry monitors projects valued at ₹150 crore and above.
Out of the total 1,817 projects under observation, 458 faced cost overruns while 831 encountered delays.
Anticipated completion cost surges by over 20%
The initial cost of executing these 1,817 projects was estimated at ₹27,58,567.23 crore.
However, the expected completion cost has now risen to ₹33,29,647.99 crore.
This indicates a cost overrun of over ₹5,71,080.76 crore or an increase of 20.70% from the original cost, as per the ministry’s May report.
The report also revealed that as of May 2024, ₹17,07,190.15 crore has been spent on these projects. This expenditure represents 51.3% of the anticipated total cost for these infrastructure projects across India.
Significant delays plague numerous projects
The number of delayed projects dropped to 554 when calculated based on the latest schedule of completion.
The report detailed varying degrees of delay: 245 projects are behind by 1-12 months; 188 have been delayed for between 13-24 months; another 271 projects are lagging by between 25-60 months; and a significant number—127 projects—have been delayed for more than five years (60 months).