Rs.1.57 trillion cost overrun in 239 core projects

Chennai, July 9 (IANS) A whopping Rs.1.57 trillion (Rs.157,802 crore) is the latest estimated cost overrun in 239 central sector infrastructure projects, states the 2013-14 Economic Survey presented in parliament Wednesday.

According to the survey, time overruns in the implementation of projects continue to be one of the main reasons for under-achievement in many of the core sectors.

Citing the Ministry of Statistics and Programme Implementation (MOSPI) Flash Report for February 2014, the survey states that out of 239 central-sector infrastructure projects costing Rs.1,000 crore and above, 99 are delayed with respect to the latest schedule and 11 have reported additional delays with respect to the date of completion reported in the previous month.

The additional delays in respect of projects relating to the petroleum, power, steel, and coal sectors are in the range of one to 26 months.

"The total original cost of implementation of these 239 projects was about Rs.739,882 crore (Rs.7.39 trillion) and their anticipated completion cost is likely to be Rs.897,684 crore (Rs.8.97 trillion), implying an overall cost overrun of Rs.157,802 crore (21.3 per cent of the original cost)," the survey states.

The expenditure incurred on these projects till February 2014 was Rs.4.10 trillion (Rs.410,684 crore), which is 45.7 per cent of the total anticipated cost.