Infra projects in AP incur 42% cost surge
Cost of 105 national projects in Andhra Pradesh rose to Rs201,933.35 crore from total original cost of Rs142,280.96 cr; Cost escalation in Telangana much lower than national average of 18.41%
image for illustrative purpose
The total original cost of all 1,821 such national projects was Rs2,609,679.38 cr, whereas their anticipated completion cost is likely to be Rs3,090,135.99 cr, an overall escalation of Rs480,456.61 cr
Cost Overrun
- 32 projects’ cost in AP rose 98.07% of original cost
- 55 projects’ cost in Telangana rose 8.17% from Rs38,037.92 cr to Rs41,144.78 cr
- Only 7 projects in TG suffer from cost overruns of 23.42%
New Delhi: There is a remarkable difference in cost escalation of infrastructure projects in the two Telugu-speaking States, Andhra Pradesh and Telangana, with the overruns almost 42 per cent the former and just over eight per cent in the latter.
In Andhra Pradesh, there are 105 projects with the total original cost of Rs142,280.96 crore, which is now anticipated at Rs201,933.35 crore, a rise of 41.93 per cent. Of the 32 projects with cost overruns, the anticipated cost at the end of January was 98.07 per cent of the original cost.
In fact, this is the highest cost escalation percentage among larger States. While Puducherry has no cost overruns, Punjab has negligible at 0.72 per cent.
In Telangana, the total original cost of 55 projects is Rs38,037.92 crore, which is now estimated to be Rs41,144.78 crore, an increase of 8.17 per cent. Only seven projects suffer from higher cost overruns, which is 23.42 per cent.
The cost escalation in Telangana is much lower than the national average of 18.41 per cent. In the entire country, there are 431 infrastructure projects worth 150 crore or above which are plagued by cost overruns of over Rs4.8 lakh crore in January.
The total original cost of the 1,821 such projects was Rs2,609,679.38 crore, whereas their anticipated completion cost is likely to be Rs3,090,135.99 crore, an overall escalation of Rs480,456.61 crore.
The North-Eastern region and other Himalayan States are the worst sufferers of cost escalation in infrastructure projects, the maximum being in Meghalaya (137.06%). In Mizoram, it is 72.36 per cent, in Manipur 65.36 per cent, in Jammu & Kashmir 51,74 per cent, in Sikkim 48.58 per cent, in Uttarakhand 48.09 per cent, in Himachal Pradesh 47.85 per cent, and in Nagaland 33.47 per cent. Among major States, after Andhra Pradesh, the maximum cost overruns are in West Bengal, 32.29 per cent, followed by Rajasthan 28.43 per cent and Bihar 20.8 per cent.
