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What is the News?
The Ministry of Statistics and Programme Implementation (MOSPI) has released a report that shows the cost overruns and time overruns for various projects.
What are cost and time overrun?
Cost overrun: It is an unexpected change in the project budget that ends up increasing the total project cost.
Time overrun: It can be defined as a condition where a project does not complete within the designed schedule.
What are the Key Findings of the report?
The cost overruns for 1,670 projects worth more than Rs 150 crore value were on average around 20%.
Among these projects, Larger projects (worth more than Rs 1,000 crore) faced higher cost overruns as the anticipated cost exceeded the original by a quarter.
Among all these projects, a third of the total projects faced time overruns.
Region-wise: The Northeast region faced the highest cost overruns for central projects.
Sectors with high-Cost Overruns: Water, telecom and Railways. For example, in water resources, the anticipated costs were 184% higher than the original cost.
The sector with high Time Overruns: Roads and Railways. For example, the average time of delay in Railways was 69 months or nearly 6 years.
Source: This post is based on the article “Statsguru: Six charts show India’s infrastructure projects in a slow lane” published in Business Standard on 2nd November 2021
