Rs 3.39 Lakh Crore: What Inefficiencies In Managing Big Ticket Infra Projects Has Cost The Nation
According to data released by the Ministry of Statistics & Programme Implementation, inability to complete hundreds of infrastructure projects on time has led to cost overruns of around Rs 3.39 lakh crore, as reported by Press Trust of India (PTI).
The money could have been used to fund other big ticket infrastructure projects if the existing ones had been completed within the stipulated time and budget.
“Total original cost of implementation of the 1,362 projects was Rs 17,03,840.01 crore and their anticipated completion cost is likely to be Rs 20,43,024.21 crore, which reflects overall cost overruns of Rs 3,39,184.20 crore (19.91 per cent of original cost),” Out of the 1362 projects, while 357 projects reported cost overruns, 272 projects extended their completion dates.
It should be noted that the Ministry monitors only those projects which cost upwards of Rs 150 crores. There could be many more small projects that could have increased costs and taken together; they could together represent enormous losses to the public.
Land acquisition still remains the top reason for such delays. However, various state governments in the country have created ‘land banks’ to expedite land purchases by companies. These refer to the ready-to-use pools of property, acquired by the respective governments. These parcels of land have been granted all the necessary approvals and companies can kickstart construction immediately.
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