Rs 5.75-Trn Cost Overrun Hits Infra Projects
Cost of 1,793 infrastructure projects rose 20.87% to `33,29,030.97 cr in July from `27,54,025.8 cr
Rs 5.75-Trn Cost Overrun Hits Infra Projects
New Delhi: Cost overruns of 1,793 infrastructure projects by the end of July were Rs5,75,005.17 crore. The original cost of these projects, each worth Rs150 or more, was Rs27,54,025.8 crore, but it has been anticipated to be Rs33,29,030.97 crore, which means an increase of 20.87 per cent.
Most of the cost escalation is on account of Railways projects, Rs2,43,808.66 crore, official sources told Bizz Buzz. It was originally anticipated that its 231 projects would be completed with Rs4,29,868.26 crore, but now they are estimated to cost Rs6,73,676.92 crore.
Petroleum and road projects are next in the list of cost overruns. As many as 95 petroleum projects were originally estimated to cost Rs4,51,845.79 crore, but the figure is Rs5,16,573.59 crore, which is Rs64,727.8 crore more. For 1,052 road projects, the corresponding amounts are Rs8,13,465.35 crore, Rs8,65,746.4 crore and Rs52,281.05 crore, respectively.
Interestingly, 21 infrastructure projects were completed in July whose cost at the time of inception was supposed to be Rs8,648.94 crore, but the final cost project to be less than that, Rs7,570.75 crore.
Four new projects, at the cost of Rs3,263.92 crore, were added in July.
It may be recalled that infrastructure development is a major thrust area of the Narendra Modi government. Finance Minister Nirmala Sitharaman had earmarked Rs1,111,111 crore for capital expenditure in the Interim Budget; she kept it in the regular Budget 2024-25 too.
The Finance Minister has also begun a series of review meetings with the Union Ministries and Departments involved in infrastructure building. The objective is to review the progress of capital expenditure.
The central government has made significant investment over the years in building and improving infrastructure, which has had a strong multiplier effect on the economy, she said in her Budget speech. “We will endeavor to maintain strong fiscal support for infrastructure over the next five years, in conjunction with imperatives of other priorities and fiscal consolidation.”
