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The government completed 281 central infrastructure projects costing over ?150 crore in the fiscal year 2023-2024, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). Although this marks a significant achievement, it is slightly lower than the 329 projects completed in the previous fiscal year. However, the 281 projects represent the second-highest completion rate in nearly a decade.
Despite this progress, the proportion of delayed projects has increased. As of March 2024, 41.6% of central government projects were delayed, compared with 41.2% in the previous month. Additionally, the ratio of cost overruns hit a three-month high of 18.65%, up from 18.19% in February. This is attributed to the anticipated cost of 1,873 projects totaling ?31.9 lakh crore, which is ?5 lakh crore higher than the original estimates.
Of the 779 projects delayed by the end of March, 51% were delayed for over two years, with an average delay of 36.04 months, or nearly three years. According to the government release, three projects (two in roads and one in telecom) were added in March, while 32 projects (seven in roads, 23 in petroleum, and two in the power sector) were completed.
“It has also been observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time/cost overrun figures may be underreported,” the MoSPI release stated.
An analysis by sector shows that Railways and Water Resources experienced the highest cost overruns, with the anticipated costs of all projects monitored by the ministry exceeding the original budget by 54% and 197%, respectively. Of the 249 railway projects monitored, 149 faced cost overruns, while the ratio was 9 out of 41 for water resources. Nearly a fifth of road projects, which comprise the largest number of ongoing projects, were facing cost overruns.
Regarding time overruns, 109 of 249 railway projects faced delays, whereas nearly 40% of road projects experienced time overruns.
The completion of 281 projects in FY24 is a positive step toward improving Indias infrastructure, but the increasing rates of delays and cost overruns highlight challenges that need to be addressed. The government plans to closely monitor these issues to ensure timely completion and cost efficiency in future projects. |
