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The Ministry of Statistics and Programme Implementation (MOSPI) has released a report that shows the cost overruns and time overruns for various projects.
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Cost overrun: It is an unexpected change in the project budget that ends up increasing the total project cost.
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Time overrun: It can be defined as a condition where a project does not complete within the designed schedule.
What are the Key Findings of the report?
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Larger projects (worth more than Rs 1,000 crore) faced higher cost overruns as the anticipated cost exceeded the original by a quarter.
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Among all these projects, a third of the total projects faced time overruns.
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Region-wise: The Northeast region faced the highest cost overruns for central projects.
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Sectors with high-Cost Overruns: Water, telecom and Railways. For example, in water resources, the anticipated costs were 184% higher than the original cost.
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The sector with high Time Overruns: Roads and Railways. For example, the average time of delay in Railways was 69 months or nearly 6 years.