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According to an official estimate, 448 infrastructure projects of ₹150 crore or more experienced cost overruns totalling over ₹5.55 trillion in the December quarter of 2023. The Central Sector Quarterly Project Implementation Status Report (QPISR) for the third quarter of 2023-24 includes specific information on 1,897 projects.
The Ministry of Statistics and Programme Implementation is responsible for creating the QPISR. Of 1,897 projects, 448 had a cost overrun of ₹5,55,352.41 crore, or 65.2% of their sanctioned cost.
However, 292 projects reported cost overruns of ₹2,89,699.46 crore from the latest allowed cost. Further, 276 projects have both time and cost overruns. Out of 1,897 projects, 56 were ahead of schedule, 632 were on schedule, and 902 were delayed with respect to the original schedule of completion.
Further, it stated that for 307 projects, either the original or the anticipated completion date was not reported or had lapsed.
The anticipated completion cost of these 1,897 projects is reported to be ₹31,74,489.91 crore.
The total expenditure as of December 31, 2023, was ₹16,89,400.92 crore, which works out to 53.22% of the total anticipated completion cost and 63.9% of the original cost. For these 1,897 projects, it stated that a total outlay of ₹3,70,983.54 crore has been allocated for 2023-24.
The percentage of delayed projects decreased from 56.70% in the quarter that ended December 2022 to 47.55% in the third quarter of FY24. The percentage of cost overruns also decreased from 21.42% to 20.1%. Various project implementing agencies report that causes of time overruns include delays in land acquisition, obtaining forest and environmental clearances, and problems with law and order.
The report also cited state-wise lockdowns due to COVID-19 (imposed in 2020 and 2021) as a reason for the delay in implementing these projects. While the cost overruns due to general price escalation could not be avoided, it stated that the cost escalation due to delay could be minimised.
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