Delayed Central infrastructure projects down for second month in a row

Cost overrun maximum for transport sector

A lower share of central infrastructure projects was delayed in November, the second straight month of decline.
 

According to a November 2023 report by the Ministry of Statistics and Programme Implementation (MOSPI), which covers projects worth Rs 150 crore or above, as many as 845 delayed projects comprise 46.1 per cent of the total. It was 47.8 per cent in September and 46.8 per cent in October. The share was higher at 51.2 per cent in the same month the previous year. It was 34 per cent in 2019. The projects were delayed for 36.6 months on average as of November. Out of 845 delayed projects, 38 per cent were delayed for 25-60 months, 24 per cent for 1-12 months, 23 per cent for 13-24 months, and 14 per cent for more than 60 months.
 

 

Meanwhile, projects on schedule accounted for 34 per cent share of the total.

There are some outliers.

The Udhampur-Srinagar-Baramulla project, approved in 1995, has been facing delays for years. According to the report, it is expected to be completed by February 2024.

Land acquisition, tendering, obtaining forest/environment clearances, and lack of infrastructure support were some of the reasons for the delay in projects, the report mentioned.

However, additional expenditure incurred due to delays has declined. Projects incurred an added expense of 17.5 per cent or Rs 4.4 trillion than estimated. It was 21.7 per cent in November 2022. It was 19.6 per cent in the same month in 2019 .

As of November, railways incurred the maximum cost overrun of Rs 2.1 trillion, among 22 sectors. Next was the power sector (Rs 0.5 trillion), followed by water resources (Rs 0.5 trillion), road transport and highways (Rs 0.4 trillion).