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Up to 343 infrastructure projects see cost overrun of Rs 2.2 lakh crore, railway worst affected

Up to 343 infrastructure projects see cost overrun of Rs 2.2 lakh crore, railway worst affected

Up to 343 infrastructure projects see cost overrun of Rs 2.2 lakh crore, railway worst affected
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By Jyotindra Dubey  Jul 13, 2018 6:31:20 AM IST (Updated)

As many as 343 central infrastructure projects show cost overrun of Rs 2.2 lakh crore due to delays and other reasons.

As many as 343 central infrastructure projects show cost overrun of Rs 2.2 lakh crore due to delays and other reasons.

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There are 1,304 central infrastructure projects under implementation as on February, 2018 and is currently being monitored by the Infrastructure and Project Monitoring Division of Ministry of Statistics and Programme Implementation (MoSPI).
The original cost of implementation for 1,304 projects was pegged at Rs 16.2 lakh crore, but the latest evaluation shows that the expected cost of completing these projects has gone up to Rs 18.38 lakh crore, a cost overrun of Rs 2.2 lakh crore, according to a recent report ‘Status of Infrastructure Projects’ by CARE Ratings.
The infrastructure can be broadly divided into top seven sectors such as railways, roads, power, petroleum, urban development and atomic energy, which accounts for almost 95 percent of the total projects.
Among these sectors, railways infrastructure projects account for the maximum cost overruns followed by power sector.
 
 
Most of the railway infrastructure projects were related to doubling the existing railway lines, especially in north-east, laying of new lines among others.
Interestingly, certain projects under implementation for extending routes and laying new tracks dates back to as old as 1981. These projects are still under the implementation and not yet completed.
Up to 60 percent of 334 railway projects under implementation are facing cost overrun and 10 percent of the projects are running behind the completion schedule.
 
Similarly in the power sector, 54 percent of the projects under implementation are facing time overrun and 40 percent of projects are facing cost overrun.
On the other hand, roads transport and highways sector scored better concerning cost overrun, despite accounting for the most number of projects under implementation.
Out of 522 road projects, only 42 projects facing cost overrun and 48 projects are facing time overrun.
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