New Delhi, September 20
As many as 432 infrastructure tasks, every value Rs 150 crore or extra, have been hit by price overruns of over Rs 4.29 lakh crore owing to delays and different causes, in response to a report.
The Ministry of Statistics and Programme Implementation screens infrastructure tasks value Rs 150 crore and above.
Of the 1,670 such tasks, 432 reported price overruns and 505-time escalation.
“Total original cost of implementation of the 1,670 projects was Rs 20,58,193.26 crore and their anticipated completion cost is likely to be Rs 24,87,361.54 crore, which reflects overall cost overruns of Rs 4,29,168.28 crore (20.85 per cent of original cost),” the ministry’s newest report for July 2020 mentioned.
The expenditure incurred on these tasks until July 2020 is Rs 11,51,222.81 crore, which is 46.28 per cent of the anticipated price of the tasks.
However, it mentioned that the variety of delayed tasks decreased to 418 if delay is calculated on the idea of the most recent schedule of completion.
Further, the report mentioned that for 945 tasks neither the 12 months of commissioning nor the tentative gestation interval has been reported.
Out of 505 delayed tasks, 120 have total delay within the vary of 1 to 12 months, 118 have delays of 13 to 24 months, 157 replicate delay within the vary of 25 to 60 months and 110 tasks present delays of 61 months and above.
The common time overrun in these 505 delayed tasks is 43.49 months.
The temporary causes for time overruns as reported by varied challenge implementing companies are delay in land acquisition, delay in acquiring forest/surroundings clearances and lack of infrastructure assist and linkages.
Besides, there are different causes like delay in tie-up of challenge financing, delay in finalisation of detailed engineering, change in scope, delay in tendering, ordering and gear provide, regulation and order issues, geological surprises, pre-commissioning teething troubles and contractual points, amongst others, the report mentioned.
It has additionally been noticed that challenge companies are usually not reporting revised price estimates and commissioning schedules for a lot of tasks, which suggests that point/price overrun figures are under-reported, the report acknowledged. PTI