Reaching the skies is important. However, the dark clouds hovering between the earth and the sky are an important factor to be kept in mind. Today’s blog covers an important aspect discussed these days with high interest rates and deflated finances of the government. And the featured image is apt wrap on the knuckles. Let us see how
According to the Ministry of Statistics and Programme Implementation, which monitors infrastructure projects of INR 150 crore and above, out of 1,514 projects, 384 reported cost overruns of more than INR 4.66 lakh crore and as many as 713 projects were delayed. Further, it showed that for 523 projects neither the year of commissioning nor the tentative gestation period has been reported.
Out of the 713 delayed projects, 123 have overall delays in the range of 1-12 months, 122 have been delayed for 13-24 months, 339 projects for 25-60 months and 129 projects have been delayed for 61 months and above. The average time overrun in these 713 delayed projects is 42.13 months.
Reasons for time overruns as reported by various project implementing agencies include
- Delay in land acquisition,
- Slow-down in obtaining forest and environment clearances,
- Lack of infrastructure support and linkages,
- Hold-up in tie-up for project financing,
- Other reasons include delay in finalisation of detailed engineering, change in scope, tendering, ordering and equipment supply, and law and order problems.
One more reason cited includes state-wise lockdowns due to COVID-19.
NPowersU Expert Opinion
Just as the statement holds true ‘Justice delayed is justice denied’, similar it can be said that ‘projects delayed with cost over runs, is benefit denied to common tax payer’.
Most of the reasons cited are due to lack of co-ordination between government agencies. If similar reasons were cited by a corporate in stakeholders meeting, we are sure that would have been the last day the board governed the said Company.
In this era with inflationary trends, hope the government puts similar agencies like Enforcement Directorate which can deliver and walk the talk even with negative media coverage.
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