The poor implementation of Central sector infrastructure projects like roads, railways and power would results in massive cost overrun of Rs. 1.24 lakh crore (Rs. 1,000 billion), says a government report.According to Ministry of Statistics and Programme Implementation's latest analysis of 560 such projects worth over Rs. 150 crore (Rs. 1.5 billion) under review, the anticipated cost would be Rs. 1,24,616.11 crore (Rs. 1,246.161 billion) higher than the original estimates.
The total original cost of implementation of these projects was about Rs. 6,03,783.35 crore (Rs. 6,037.833 billion), which would be completed for Rs. 7,28,399.46 crore (Rs. 7,283.994 billion), the latest ministry analysis stated.
As many as 251 projects are delayed and 116 works were sanctioned without any commissioning schedule.
There are 46
projects where neither the year of commission nor the tentative gestation period was reported as per the ministry's report.
The number of projects running ahead of schedule are minuscule at 10.
Sector wise, the performance of Railways seem to be the worst as the cost overrun is the highest at 84.2 per cent.
The total original estimated cost of the monitored 139 railways projects was Rs. 66,775.98 crore (Rs. 667.759 billion) which is now revised upward at Rs. 1,23,021.21 crore (Rs. 1,230.212 billion).
Another plagued sector is steel where poor implementation would result in cost overrun of 62.9 per cent.
The report pointed out that against the estimated original cost of Rs. 39,997.85 crore (Rs. 399.978 billion) of 13 such projects under review, the expenditure would rise to Rs. 65,040.88 crore (Rs. 650.408 billion).
