Cost overruns ebb, yet delays persist in half of major infra projects
The efforts to enhance coordination among ministries might have contributed to a decline in cost overruns, yet nearly half of the major infrastructure projects still confront delays.
Data from the Ministry of Statistics and Programme Implementation’s (MoSPI’s) monthly flash reports reveals that in June 2023, cost overruns were reduced to 19.5 per cent compared to the initial expected cost. The report covers projects with expenditures of Rs 150 crore or more. However, cost overruns remain substantial in absolute terms, amounting to an additional expense of Rs 4.6 trillion across more than 800 projects (see chart 1).
