DNA Money Edit: Importance of on-time project implementation

Delay in implementing big infrastructure projects has continued to bleed the exchequer. A report by Ministry of Statistics and Programme Implementation said 331 infrastructure projects, out of 1,257 projects that are monitored by it, have seen a cost overrun of Rs 1.72 lakh crore. Interestingly, out of 274 delayed projects, 59 have reported a delay of up to two years.

Other 101 projects have reported a delay of up to five years and another 67 projects, beyond five years. 331 projects are showing cost overrun and 92 projects are showing both time and cost overrun with respect to the original schedules. The silver lining is that two projects have reported completion while 11 projects are ahead of schedule and 304 on schedule.

The time and cost overruns stem from a host of issues including delay in land acquisition and forest clearance, supply of equipment, delay due to unavailability of funds and a plethora of legal cases amid worsening law and order situation in some states.

Of course, a few issues are unanticipated and hence unavoidable, but the central government and state governments have to make a serious effort to push important projects without letting them stuck at any trivial and inane issues. It will save a lot of tax payers' money and contribute to the welfare of the society.