)
Delays in execution of central infrastructure projects have resulted in cost overruns of more than Rs 1 lakh crore, an Assocham paper has said.
Till March 2013, the cost overruns had been worked out at Rs 94,800 crore in about 285 central projects. Assuming about 8-10% annual accretion, the overruns would have crossed Rs 1 lakh crore by March 2014.
While the original costs were worked out at Rs 4.75 lakh crore for these projects; they had overshot to Rs 5.69 lakh crore in 2013.
"We would urge Prime Minister Narendra Modi to personally take note of such projects and the PMO should regularly monitor them. As there is a demand slowdown in the economy, revival in the investment cycle should be led by the Central sector projects," Assocham President Rana Kapoor said.
The cost overruns due to delay in execution of central projects in the infrastructure sector are maximum in the Railways, amounting to Rs 45,600 crore.
"The new Railway Minister must look at these projects and put them back on track. A clear-cut roadmap for their revival and execution should be unveiled in the Budget," Kapoor said.
In the power sector, the cost overruns are in excess of Rs 15,000 crore as the costs of projects went up from the original estimates of Rs 1.35 lakh crore to Rs 1.50 lakh crore.
The cost overruns due to delays in the petroleum and steel sectors are over Rs 10,000 crore and Rs 620 crore respectively, according to the study.
