According to an official report, 448 infrastructure projects with an investment of Rs 150 crore or more faced a cost overrun of over Rs 5.55 lakh crore in April 2024. The Ministry of Statistics and Programme Implementation (MoSPI) monitors infrastructure projects worth Rs 150 crore and above. Out of 1,838 projects, 448 reported cost overruns, and 792 projects were delayed. The total original cost of the 1,838 projects was Rs 27,64,246.50 crore. However, their anticipated completion cost is likely to be Rs 33,19,601.84 crore, reflecting an overall cost overrun of over Rs 5,55,355.34 crore (20.09% of the original cost), as shown in the latest report from the ministry for April 2024.
The expenditure incurred till April 2024 on these projects is Rs 1,692,997.5 crore, which is 51% of the anticipated cost. The number of delayed projects decreased to 514 when calculated based on the latest schedule of completion. Out of the 792 delayed projects, 220 have delays of 1-12 months, 192 have been delayed for 13-24 months, 259 projects for 25-60 months, and 121 projects for over 60 months. The average time overrun in these 792 delayed projects is 35.4 months.
Reasons for time overrun as reported by various project implementing agencies include land acquisition, environmental clearance, financial issues, contractual/internal issues, manpower shortage, and litigation issues.