India's infra projects have already overshot budgets by Rs 2 lakh cr

We are all aware of Indian government’s ambitious infrastructure plans. While several steps were undertaken to ensure timely delivery of these projects, news reports suggest that 224 infra projects are facing cost overruns. According to an Econonoc Times report, as many as 224 central sector infrastructure projects in sectors like road, rail and power were showing cost overrun of over Rs 2 lakh crore till December-end.

The information was revealed in the Parliament today. The financial daily report quotes Statistics Minister V K Singh’s written reply to Lok Sabha, wherein he has mentioned that “738 projects (worth Rs 150 crore each) were on monitor of this ministry as on December 31...original cost of these 738 projects was Rs 9,77,589.16 crore and their total anticipated completion cost is Rs 11,84,766.43 crore."

The minister further added that of these 738 projects, 315 were showing time overrun, 224 projects were showing cost overrun and 76 projects were showing both time and cost overrun with respect to their original project implementation schedule.

The estimated cost overrun of 224 projects, which reported higher completion is around Rs 2,07,177.27 crore.