The latest report from the Ministry of Statistics and Development said that about 417 infrastructure projects, each with investments of 150 billion yen or more, had cost overruns of more than 4.77 billion yen in January.
The ministry, which oversees infrastructure projects worth Rs 150 lakh crore or more, said that of the 1,763 projects, a quarter (417) were reported to be overrun in costs and half (842) were late. “The total initial implementation cost of the 1,763 projects is Rs 24,86,402.70 crore and their expected completion cost is likely to be Rs 29,64,345.13 crore,” the report said, and the cost is nearly 20% more than the original cost.
For 298 projects, neither the year of operation nor the temporary testing period were specified, and the average completion time for these projects was more than three years.
Reasons for the delay, according to implementing agencies, include delays in land acquisition, environmental clearance, lack of infrastructure support and linkages; Delays in financing the project, and finalizing detailed engineering and scope changes. The report added that project implementing agencies did not report revised cost estimates or operating schedules for many projects, indicating that time and cost overruns had been assessed.
For more information visit at https://happenrecently.com/zepto/?amp=1
