• According to a report by the Ministry of Statistics and Programme Implementation for December 2018, as many as 344 infrastructure projects, each worth Rs. 150 crore or more have shown cost overruns to the tune of Rs. 3.16 lakh crore owing to delays and other reasons.
• The Ministry of Statistics and Programme Implementation (MOSPI) monitors infrastructure projects worth Rs 150 crore and above.
• Cost overruns: 344 infrastructure projects, each worth Rs. 150 crore or more have shown cost overruns to the tune of Rs. 3.16 lakh crore (17.4 % of original cost).
• Time overruns: 384 reported time escalation. The average time overrun in these 384 delayed projects is 44.78 months.
• Reasons for time overruns: Delays in land acquisition, forest clearance and supply of equipment; Fund constraints; geological surprises; shortage of labour; Maoist problems, court cases, contractual issues, ROU/ROW (right of use/right of way) problems, law and order situation etc.
Mains Paper 3 : Economy
Prelims level : MOSPI