403 INFRASTRUCTURE PROJECTS SHOW COST OVERRUNS AND 530-TIME OVERRUN: MOSPI REPORT

403 INFRASTRUCTURE PROJECTS SHOW COST OVERRUNS AND 530-TIME OVERRUN: MOSPI REPORT 

• This is out of 1,686 projects worth Rs 150 crore and above. 
• Overall cost overrun is about 19.60% of the original cost and the average time overrun is around 41.16 months. 
• Presently, the Ministry of Statistics and Programme Implementation (MOSPI) monitors infrastructure projects worth Rs 150 crore and above. 
• Reasons for these overrun 
• Delay in land acquisition, forest/environment clearances, and lack of infrastructure support & linkages. 
• Project financing issues leading to delay in finalization of detailed engineering etc. 
• Delay in tendering, ordering, and equipment supply. 
• No reporting of revised cost estimates leading to under-reporting. 
• Law and order problems, geological surprises 
• Suggestions 
• Improving processes and capabilities: By investing in pre-planning and site investigation, reforming procurement, strengthening contract management, collaborative planning, etc. 
• Strengthen people management processes i.e. Clear responsibility charter with a delegation of the decision-making process, adopting technology, Overcoming legacy challenges. 
• Deepening stakeholder management for land acquisition and regulatory approvals. 
• Steps were taken in this direction: Preparing National Infrastructure Pipeline which aims to improve project preparation, Project Development Cells in Ministries, revised Model Concession agreement for Build-Operate-Transfer (BOT) model, etc.