Reported By:
| Edited By: DNA |Source: DNA |Updated: Apr 19, 2019, 05:40 AM IST
India remains a country where delays in infrastructure project as well as cost overruns are a norm.
The reasons behind these deadline revisions too haven't changed in the last so many decades. Land acquisition remains the biggest factor behind projects being stuck for long. Even a day's delay translates into certain increase in a project's cost. A Care Ratings report stated that for 1,424 projects being implemented by the central government, the initial cost was Rs 18.17 lakh crore, but due to delays this has shot up to Rs 21.34 lakh crore. This is Rs 3.17 lakh crore or 17.44% increase in the total cost.
Compare this Rs 3.17 lakh crore cost hike with Ministry of Road Transport & Highways requirement of Rs 5.35 lakh crore to implement the first phase of Bharatmala involving construction of 34,800 km in the five years starting 2017-18.
More than half of Bharatmala's funding requirement can be met with this 'cost overrun'. The government is struggling to raise funds for this very ambitious project. In fact, recent Toll Operate Transfer bid had to be scrapped due to quotes received being lower than the reserve price.
Until January 2019, the National Highways Authority of India had raised Rs 41,170 crore to take up road projects and the debt level will only increase in the coming years.
One can only imagine India will not have a high debt level if such huge delays are well below 10% or in single digit as against 75% of the projects being without the definitive completion timeline.
