Central Infrastructure Projects Face Rs 5.6 Lakh Crore Overrun And Delays

The ratio of cost overruns in central government projects surged to a 12-month high of 20.09 per cent in April, up from 18.65 per cent in the previous month, according to government data released on Tuesday (28 May).

The anticipated cost of 1,838 projects, each valued at Rs 150 crore or more, totalled Rs 33.2 lakh crore. This figure was Rs 5.6 lakh crore higher than the original estimated cost. Additionally, the ratio of delayed projects increased compared to the previous months.

Out of these projects, 43 per cent (792 projects) were delayed with respect to their original completion date, and 514 projects were delayed in terms of their original cost as well. Government data indicated that 61 projects were completed in April, while 29 new projects were initiated.

The cost of completed projects in April was Rs 46,649.7 crore, whereas the newly added projects had an estimated cost of Rs 1.3 lakh crore.

The government’s focus on infrastructure development has been highlighted by international agencies as a key driver of growth and is expected to continue in the coming year.

Despite the rise in cost overruns in April, the average time for project completion decreased to 35.4 months, compared to 36.04 months in March. However, 48 per cent of the projects experienced delays of over two years.

The government report noted that 54 of the 1,838 projects, which had time overruns exceeding 50 months and cost overruns over 50 per cent, contributed 43.39 per cent of the total cost overrun and 21.34 per cent of the total time overrun.

Among the major sectors, the railways faced the highest cost overruns at 126.5 per cent in April, with over half of its projects registered with the government experiencing cost overruns. The road transport and highways sector, which accounts for nearly 60 per cent of the projects, had a cost overrun ratio of 23.7 per cent.

Additionally, one-third of railway projects and over 10 per cent of road projects faced time overruns, according to government data.