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As many as 438 infrastructure projects with a total cost of ₹150 crore or above have shown a 62% cost overrun amounting to ₹5.18 lakh crore, Parliament was informed on Monday.
According to a written reply to the Rajya Sabha by Minister of State for Statistics & Programme Implementation Rao Inderjit Singh, the original total cost of these 438 projects increased to ₹13.56 lakh crore from ₹8.38 lakh crore.
As on November 1, 2024, a total of 438 of 1,747 projects on the monitor of the ministry reported a cost overrun of ₹5.18 lakh crore, registering an increase of 61.82%, according to the data shared by the minister showed.
As reported by the project implementing agencies, the main reasons for the increase in cost of the projects are under-estimation of original cost, changes in rates of foreign exchange and statutory duties, spiralling land acquisition costs and shortage of skilled manpower/labour, the Minister said.
Other reasons affecting the original cost are "high cost of environmental safeguards & rehabilitation measures, changes in project scope, monopolistic pricing by vendors of equipment services; general price rise and inflation and time overruns," he said.
The Ministry of Statistics and Programme Implementation is mandated to monitor Ongoing Central Sector Infrastructure Projects costing ₹150 crore and above on time and cost overrun, based on the information reported by the line ministries/ project implementing agencies on the online computerized monitoring system of the ministry.
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According to a written reply to the Rajya Sabha by Minister of State for Statistics & Programme Implementation Rao Inderjit Singh, the original total cost of these 438 projects increased to ₹13.56 lakh crore from ₹8.38 lakh crore.
As on November 1, 2024, a total of 438 of 1,747 projects on the monitor of the ministry reported a cost overrun of ₹5.18 lakh crore, registering an increase of 61.82%, according to the data shared by the minister showed.
As reported by the project implementing agencies, the main reasons for the increase in cost of the projects are under-estimation of original cost, changes in rates of foreign exchange and statutory duties, spiralling land acquisition costs and shortage of skilled manpower/labour, the Minister said.
Other reasons affecting the original cost are "high cost of environmental safeguards & rehabilitation measures, changes in project scope, monopolistic pricing by vendors of equipment services; general price rise and inflation and time overruns," he said.
The Ministry of Statistics and Programme Implementation is mandated to monitor Ongoing Central Sector Infrastructure Projects costing ₹150 crore and above on time and cost overrun, based on the information reported by the line ministries/ project implementing agencies on the online computerized monitoring system of the ministry.
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