"Total original cost of implementation of the 1,686 projects was Rs 20,66,771.94 crore and their anticipated completion cost is likely to be Rs 24,71,947.66 crore, which reflects overall cost overruns of 4,05,175.72 crore (19.60 per cent of original cost)," the ministry's latest report for March 2020 said.
The expenditure incurred on these projects till March 2020 is 11,20,696.16 crore, which is 45.34 per cent of the anticipated cost of the projects.
However, it said that the number of delayed projects decreases to 452 if the delay is calculated on the basis of latest schedule of completion.
Further, it said that for 857 projects neither the year of commissioning nor the tentative gestation period has been reported.
Out of 530 delayed projects, 155 have overall delay in the range of 1 to 12 months, 114 have delay of 13 to 24 months, 148 reflect delay in the range of 25 to 60 months and 113 projects show delay of 61 months and above.
The average time overrun in these 530 delayed projects is 41.16 months.
The brief reasons for time overruns as reported by various project implementing agencies are delay in land acquisition, delay in obtaining forest/environment clearances and lack of infrastructure support & linkages.
Besides there are other reasons like delay in tie-up of project financing, delay in finalisation of detailed engineering, change in scope, delay in tendering, ordering and equipment supply, law and order problems, geological surprises, pre-commissioning teething troubles and contractual issues, among others, the report said.
It also observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, indicating that time or cost overrun figures are under-reported.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.