Ministry list reasons for delay in completion
Cost overrun at 1,737 projects is likely to be Rs.26,71,440.77 crore, an increase by 19.61% or Rs.4,38,031.24 crore, on the original cost of Rs.22,33,409.53 crore, the Ministry of Statistics and Programme Implementation said on 31 May 2021.
It reported cost overruns at 470 projects, each being contracted at Rs.150 crore or more, while 525 were being delayed by as much as 45.63 months — 106 projects have an overall delay in the range of 1-12 months, 123 projects 13-24 months, 179 projects 25-60 months and 117 projects 61 months and above.
Expenditure incurred on these projects till April 2021 is Rs.13,16,032.62 crore, or 49.26 per cent of the anticipated cost of the projects.
The ministry pointed out that for 988 projects neither the year of commissioning nor the tentative gestation period has been reported.
Implementing agencies said the projects faced delay in land acquisition, delay in obtaining forest and environment clearances, and lack of infrastructure support and linkages.
The Ministry also noted delay in tie-up for project financing, delay in finalisation of detailed engineering, change in scope, delay in tendering, ordering and equipment supply, and law and order problems, among others, are the other reasons.
COVID-19 induced state-wise lockdown of activities also had impacted the projects’ progress, it added. #tenders #contracts #projects /fiinews.com
