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The rise in price overruns was additionally accompanied by an increase within the variety of delayed initiatives. The ratio of delayed initiatives rose to 46.6% in December in contrast with 46.1% within the earlier month. Of the 848 initiatives delayed in December, one other 198 reported extra delays.
A fourth of those initiatives belonged to the megaproject class, which pertains to these with a price of Rs 1000 crore and above. The common time overrun for the delayed initiatives was 36.59 months.
The report additionally identified that the extent of price overruns could also be even greater as many ministries had not submitted revised estimates.
“It has additionally been noticed that mission companies should not reporting revised price estimates and commissioning schedules for a lot of initiatives, which suggests that point/price overrun figures could also be under-reported,” the ministry reiterated.
A complete of 298 initiatives of 1,820 obtainable on the federal government’s On-line Computerised Monitoring System (OCMS) portal had no date of commissioning or tentative gestation interval. Railways was the worst performer as regards price overruns. Of the 250 initiatives reported beneath the portal, 138 confronted price overruns in December. The common price overrun in Railways was 50%, with water assets being the one different infrastructure class with greater price overruns. For the 41 initiatives categorised beneath water assets, the anticipated price of Rs 69,700 crore was 197% greater than the unique price of Rs 23,466 crore. Practically half of the initiatives within the energy sector confronted time overruns, whereas the corresponding ratio for railways was 40%. Practically a 3rd of highway and freeway initiatives additionally confronted time overruns.
The federal government lists delays in land acquisition, environmental clearances, lack of infrastructure help & linkages, and tie-ups for mission financing as vital causes for delays.
