384 Infra Tasks Current Value Overruns of Rs 4.66 Lakh Crore
As many as 384 infrastructure projects, each involving financing of Rs 150 crore or more, have been hit by price overruns in excess of Rs 4.66 lakh crore, according to a report. According to the Ministry of Statistics and Program Implementation, which displays infrastructure tasks of Rs 150 crore and above, out of 1,514 tasks, 384 reported price overruns and up to 713 tasks were delayed.
“The total one-time price for implementing the 1,514 tasks was Rs 21,21,471.79 crore and their expected completion price is likely to be Rs 25,87,946.13 crore, showing overruns of general prices of Rs 4,66,474.34 crore (21.99% of single price),” said the ministry’s latest report for June 2022.
Based on the report, the expenditure incurred for these tasks till June 2022 amounts to Rs 13,30,885.21 Crore which is 51.43% of the projected price of the tasks. However, the number of delayed tasks decreases to 552, if the delay is calculated based on the most recent execution schedule. Additionally, he confirmed that for 523 tasks, neither the 12 months of commissioning nor the tentative gestation interval were reported.
Of the 713 tasks delayed, 123 have general delays in the range of 1-12 months, 122 were delayed 13-24 months, 339 tasks 25-60 months, and 129 tasks were delayed 61 months or more. The typical timeout in these 713 delayed tasks is 42.13 months.
Causes of time overruns reported by many project implementation companies include delay in land acquisition, delay in forest acquisition and establishment of clearances, and lack of assistance and infrastructure links. Delay in venture capital funding, finalization of detailed engineering, scope change, tenders, orders and supply of equipment, as well as legislation and ordering issues are among the many different causes.
The report further cites state-level lockdowns as a result of COVID-19 as the cause for the delay in implementing these tasks. It was also noted that VCs should not report revised price estimates and go-live timelines for many tasks, suggesting that point/price overshoot figures are underreported, did he declare.
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