May 1, 2024: Between October 2023 and December 2023 (Q3 FY24), a total of 448 infrastructure projects, each with an investment exceeding Rs 150 crore, encountered cost overruns exceeding Rs 5.55 lakh crore, according to the Quarterly Project Implementation Status Report (QPISR) on Central Sector Projects. This comprehensive report encompasses detailed information on 1,897 infrastructure projects, collectively allocated a total outlay of Rs 3,70,983.54 crore for the fiscal year 2023-24.
Among the 1,897 projects surveyed, 448 projects incurred cost overruns amounting to Rs 5,55,352.41 crore, equivalent to 65.2% of their sanctioned cost. Furthermore, 292 projects reported an overrun of Rs 2,89,699.46 crore concerning the latest approved cost. Additionally, 276 projects experienced both time and cost overruns. The projected completion cost for these 1,897 projects is estimated to be Rs 31,74,489.91 crore.
Within this pool of projects, 56 were progressing ahead of schedule, 632 were on schedule, and 902 were delayed compared to their original completion schedule. Notably, for 307 projects, either the original or anticipated completion date was not reported or had already lapsed.
The report also highlighted a decrease in the percentage of delayed projects from 56.70% in the quarter ending December 2022 to 47.55% in the third quarter of FY24. Similarly, the percentage of cost overrun reduced from 21.42% to 20.1%. Although cost overruns due to general price escalation remained unavoidable, the report suggested that those stemming from delays could be minimised.
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