‘Key infra projects log Rs 5.4 lakh cr cost overrun’, Pg13

Key Highlights:

• Infrastructure projects in India, each costing above Rs 150 crore, have reported a cumulative cost overrun of approximately Rs 5.4 lakh crore.
• This data was released in the May report by the Ministry of Statistics and Programme Implementation (MoSPI).
• The total expenditure incurred on these projects stands at Rs 21.82 lakh crore, representing about 51.34% of their revised project cost.

Detailed Insights:

• Cost overrun refers to the amount by which the actual cost of a project exceeds its original or estimated budget.
• The Ministry of Statistics and Programme Implementation (MoSPI) is mandated to monitor Central Sector Projects costing Rs 150 crore and above.
• Common reasons for these overruns include delays in land acquisition, obtaining environmental clearances, financing issues, changes in project scope, and price escalation of raw materials.
• The government has implemented initiatives like the PM Gati Shakti National Master Plan to improve coordination and streamline approvals for infrastructure projects.
• The Project Monitoring Group (PMG), now under the Department for Promotion of Industry and Internal Trade (DPIIT), is an institutional mechanism for resolving bottlenecks in large-scale projects.
• MoSPI utilizes digital platforms such as PAIMANA (Project Assessment Infrastructure Monitoring and Analytics for Nation-Building), which replaced the older Online Computerized Monitoring System (OCMS), for real-time monitoring and evaluation of these projects.
• Periodic reviews of projects are also conducted through PRAGATI meetings, chaired by the Prime Minister, to address delays and ensure timely completion.

Key Concepts Involved:

• Cost Overrun: The amount by which the actual cost of a project surpasses its initial estimated budget.
• Infrastructure Projects: Large-scale public works, such as roads, railways, and power plants, crucial for economic development.
• Ministry of Statistics and Programme Implementation (MoSPI): The nodal ministry responsible for monitoring the implementation status and performance of central sector infrastructure projects in India.