Infrastructure
Infrastructure Boost: Central Government Completes 281 Projects, Second-Highest In Decade
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In the fiscal year 2023-24, the Union government successfully concluded work on 281 central government projects that are valued at over Rs 150 crore.
It marks a slight decrease from the 329 projects completed in the preceding year. Nonetheless, this achievement marked the second-highest completion rate recorded in nearly a decade, as per government data.
However, there was a marginal increase in the proportion of delayed projects, with 41.6 per cent experiencing delays in March compared to 41.2 per cent in the previous month.
Moreover, the ratio of cost overruns reached a three-month peak at 18.65 per cent, up from 18.19 per cent in the previous month. This escalation was attributed to the anticipated costs of 1,873 projects, amounting to Rs 31.9 lakh crore, surpassing the original estimates by Rs 5 lakh crore.
By the end of March, 779 projects faced delays, with 51 per cent of them being overdue for more than two years, averaging a delay of 36.04 months or nearly three years.
The release underscored a concerning trend where project agencies fail to report revised cost estimates and commissioning schedules for many projects, potentially leading to underreported figures of time and cost overruns, reports Economic Times.
A sectoral breakdown revealed that Indian Railways and water resources encountered the highest cost overruns, with anticipated costs of all projects monitored by the respective ministries exceeding the original estimates by 54 per cent and 197 per cent respectively.
Of the 249 railway projects monitored, over half (149) faced cost overruns, while the ratio stood at 9 out of 41 for water resources projects. Additionally, nearly one-fifth of road projects, which comprise the largest number of ongoing projects, experienced cost overruns.
In terms of time overruns, 109 out of 249 railway projects and nearly 40 per cent of road projects were delayed, highlighting the challenges in timely project execution across these sectors.
