According to a report from the Ministry of Statistics and Programme Implementation (MoSPI), the country witnessed substantial challenges in its infrastructure projects by March 2024. Out of 1,873 initiatives exceeding Rs. 150 crore in investments, 449 faced cost overruns amounting to over Rs. 5.01 lakh crore. The initial cost of these projects stood at Rs. 26,87,535.69 crore, but it surged to Rs. 31,88,859.02 crore upon completion, indicating a significant overrun.
By March 2024, approximately Rs. 17,11,648.99 crore had already been expended on these projects. While the number of delayed projects decreased to 567 based on the latest completion schedule, 393 projects lacked reported commissioning years or tentative gestation periods. The delays ranged from 1-12 months to over 60 months, with an average time overrun of 36.04 months.
Reasons cited for the delays include issues such as land acquisition delays, environmental clearances, and infrastructure support. Additionally, challenges like financing tie-ups, changes in project scope, and law and order problems were reported.
The report also pointed out that State-wise lockdowns due to COVID-19 in 2020 and 2021 further hampered project implementation. Furthermore, it highlighted concerns about under-reporting of time and cost overruns, as many project executing agencies fail to provide revised cost estimates and commissioning schedules.
