New Delhi: Maharashtra, Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Rajasthan are the top five States across India which have registered a cost overrun of several centrally sponsored projects as on November 1 this year.
On the other hand, States and Union Territories like Goa, Andaman & Nicobar Island, Tripura, Ladakh and Punjab have registered lowest cost overrun of different centrally sponsored projects till November.
According to the government statistics in possession of ETV Bharat, as many as 34 projects in Maharashtra witnessed a 44.56 per cent cost overrun from Rs 87,288.92 crore to Rs 1,26,188.21 crore.
Similarly, 26 projects in Andhra Pradesh witnessed more than 100 per cent costs overrun (109.86) from Rs 57,861.06 crore to Rs 1,21,426.59. As many as 33 projects in Tamil Nadu also marked a 25.41 per cent cost overrun from Rs 79,226.24 crore to Rs 99,353.71 crore.
At least 41 projects in Uttar Pradesh also registered a 36.09 per cent costs ove run from Rs 63,480.96 crore to Rs 86,391.94 crore whereas one project in Rajasthan witnessed 69.11 per cent cost overrun of Rs 72,937.00 crore from its original cost of Rs 43,129.00 crore.
The Rajasthan Refinery Project which was approved in October 2017 was supposed to be commissioned by October 2022. However, the revised deadline to complete the project has been fixed as of March 2025. The project under execution by HPCL Rajasthan Refinery Limited (JV) has already registered a cumulative expenditure of Rs 50,785.89 crore with 82.7 per cent progress.
Some of the major projects in Maharashtra that witnessed a huge cost overrun include setting up of 500 KTPA propane dehydrogenation integrated with polypropylene unit (GAIL), Pune-Miraj-Londa (467 Km), Rajnandgaon-Nagpur-3rd line (SECR), Wadsa- Gadhchiroli New Line (52.36 Km) (SECR).
Some of the major projects in Andhra Pradesh that witnessed a huge cost overrun include Visakh refinery modernization project, Kotapalli-Narasapur (NL) (SCR), Nadikue-Sri-Kalahasti (SCR), Vijayawada- Gudur (RVNL) among others.
Giving a reply over cost overrun of infrastructure projects in India in the Rajya Sabha on Monday, Minister of State of the Ministry of Statistics and Programme Implementation Rao Inderjit Singh said that his ministry is mandated to monitor ongoing central sector infrastructure projects.
"As on 01.11.2024, there exist a total 1747 projects on the monitor of this ministry. Out of these 1747 projects, 438 projects have cost overrun with respect to original cost," said Singh.
Stating that the reasons for time and cost overruns are project-specific, Singh said time and cost overruns depend on a variety of technical, financial and administrative factors and differ from project to project.
"However, as reported by the project implementing agencies, the main reasons for the increase in the cost of the projects include under-estimation of original cost; changes in rates of foreign exchange and statutory duties; high cost of environmental safeguards & rehabilitation measures; spiralling land acquisition costs; shortage of skilled manpower/ labour; changes in project scope; monopolistic pricing by vendors of equipment services; general Price rise and inflation and time overruns,” he said.
Singh said that his ministry has also put monitoring mechanisms in place to avoid the cost overrun of these projects. "Periodic review of projects under PRAGATI through video conferencing by Prime Minister; rigorous project appraisal; On-line Computerized Monitoring System (OCMS) for better monitoring; setting up of revised cost committees in the ministries for fixation of responsibility for time and cost overruns; regular review of infrastructure projects by the concerned administrative Ministries are some of the initiative adopted by the government to keep monitor over the issue of time and cost overrun,” he said.
Setting up of Central Sector Projects Coordination Committees (CSPCCs) in the States under the Chief Secretaries for removal of bottlenecks and for facilitating the speedy implementation of major projects is another major initiative to keep a close watch on the issue.
