The government plans to spend 4.5 lakhcrore more on infrastructure projects

The government is expected to spend £4.46 billion more on infrastructure projects than initially thought, according to a report released on Tuesday by the Department for Statistics and Programs Implementation’s Infrastructure and Projects Monitoring Unit (MoSPI).

The original cost of 1,423 projects overseen by the ministry was estimated at £20.38bn but expected costs have risen to £24.85bn, the report said.

By February the government had already spent £13.63 billion on these projects, more than half the expected cost. The Ministry oversees projects valued at ₹150 crore and above.

While 823 projects were delayed from the original schedule, the report highlighted that 46 projects were completed and 12 new projects were added in February.

An analysis shows that project entries have slowed down compared to the previous year. The government added 22.7% fewer projects between April and January of this fiscal year compared to the same period in fiscal 22.

The Government has added 199 projects in the current fiscal year (to January) with an initial cost of ₹1.68 lakhcrore.

Of 823 delayed projects, almost 60% were delayed for more than two years. The average lag time was 38.63 months. Although the number of delayed projects has increased dramatically compared to last year – when 657 out of 1,565 projects were delayed – the average time overrun has decreased.

In February 2022, the average timeout of delayed projects was 42.6 months.

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