New Delhi, June 26 (AGENCIES): While the Government plans a $1-trillion investment target for infrastructure projects in the 12th Plan (2012-2017), the tardy pace of execution continues to pose a big threat. In 2010-11, the completion delay cost the Government Rs 1,20,627.15 crore. Out of 562 projects in the year, 87 projects have reported additional delay, missing the first deadline, in the range of one to 36 months.
In its latest monitoring report on the infrastructure projects during 2010-11, the Ministry of Statistics and Programme Implementation states that the total original cost of implementation of the 562 projects was about Rs 6,13,026.37 crore which is now anticipated to be Rs 7,33,653.52 crore, an overall cost overrun of 19.70 per cent.
Another cause of concern is the fact that during the period 90 projects were sanctioned without any commissioning schedule. Similarly, 40 projects neither have the year of commissioning nor the tentative gestation period. The report notes that out of the 562 projects, 11 are ahead of schedule, 147 on schedule, and 266 projects are delayed out of which 87 projects have additional delay.
Road transport and highways, power, petroleum and railways have topped the list of additional delay in project completion. When it comes to cost overrun due to delay in execution of projects, railways is joined by water resources, urban development, and steel. Land acquisition, forest clearance, commencement or expansion approval remain the major causes of delay for the top four worst performing sectors — water resources, urban development, railways and steel.
The three urban development projects under monitoring include Delhi Metro Phase II, Bangalore Metro Rail Project and IDBI Bandra Kurla complex. Under water resources, Pagladiya Dam Project has reported a delay of 60 months from the date of commissioning. In the 12th Plan, the Government plans to invest $1 trillion in infrastructure sector over five years with over 50 per cent contribution from the private sectors.
In its latest monitoring report on the infrastructure projects during 2010-11, the Ministry of Statistics and Programme Implementation states that the total original cost of implementation of the 562 projects was about Rs 6,13,026.37 crore which is now anticipated to be Rs 7,33,653.52 crore, an overall cost overrun of 19.70 per cent.
Another cause of concern is the fact that during the period 90 projects were sanctioned without any commissioning schedule. Similarly, 40 projects neither have the year of commissioning nor the tentative gestation period. The report notes that out of the 562 projects, 11 are ahead of schedule, 147 on schedule, and 266 projects are delayed out of which 87 projects have additional delay.
Road transport and highways, power, petroleum and railways have topped the list of additional delay in project completion. When it comes to cost overrun due to delay in execution of projects, railways is joined by water resources, urban development, and steel. Land acquisition, forest clearance, commencement or expansion approval remain the major causes of delay for the top four worst performing sectors — water resources, urban development, railways and steel.
The three urban development projects under monitoring include Delhi Metro Phase II, Bangalore Metro Rail Project and IDBI Bandra Kurla complex. Under water resources, Pagladiya Dam Project has reported a delay of 60 months from the date of commissioning. In the 12th Plan, the Government plans to invest $1 trillion in infrastructure sector over five years with over 50 per cent contribution from the private sectors.
