Construction work delayed by an average of 43.34 months
The Ministry of Statistics and Programme Implementation says 423 infrastructure projects reported cost overruns of Rs.495,015.38 crore while construction progress of 721 contracted projects were delayed by an average of 43.34 months as of May 2022.
Original implementation cost of the 1,568 projects was contracted for Rs 2,159,802.67 crore but are anticipated cost Rs.2,654,818.05 crore on completion.
The combined cost overrun of these projects is 22.92% over original cost, added the Ministry.
Each contract of these projects are worth Rs.150 crore and above, according to media reports on 26 June 2022.
Expenditure incurred on these projects till May 2022 is Rs.1,342,535.22 crore, or 50.57% of the anticipated costs on completion.
The projects are behind scheduled due to delays in land acquisition, obtaining forest and environment clearances and lack of infrastructure support, according to a Press Trust of India report.
Construction progress is also delayed due to project financing, finalising detailed engineering, change in scope, tendering, ordering and equipment supply, as well as law and order problems.
State-wise lockdowns during COVID-19 also impacted implementation of these projects. fiinews.com
