Central Government Projects Show Improvement in Timeliness
A recent report released by the government highlights positive trends in the timely completion of central government projects. In January, the percentage of projects running behind schedule decreased to 42.8%, the lowest in 15 months, compared to 46.6% in the previous month.
Out of 1,821 registered projects, 617 were on schedule, while 780 faced delays, 431 experienced cost overruns, and 255 encountered both time and cost overruns. Among the delayed projects, 25% were behind schedule by 1-12 months, 24% by 1-2 years, and 51% by over two years, with an average time overrun of 36.13 months.
The government's emphasis on expediting project completion is evident, with 22 projects added and 13 completed in January. Since January 2024, 229 projects worth Rs 2.1 lakh crore have been completed.
While the ratio of cost overrun in large central government projects decreased to 18.41% in January, Railways and Road Transport and Highways sectors accounted for the majority of projects facing cost overruns, with Railways at 55%.
Approximately 40% of Railways and Roads projects also experienced time overruns. Additionally, nearly 373 projects lacked a proper commissioning date, potentially leading to further discrepancies in reported time and cost overruns. The report suggests that some project agencies have not revised cost estimates and commissioning schedules, possibly leading to underreported figures of time and cost overruns.
Out of 1,821 registered projects, 617 were on schedule, while 780 faced delays, 431 experienced cost overruns, and 255 encountered both time and cost overruns. Among the delayed projects, 25% were behind schedule by 1-12 months, 24% by 1-2 years, and 51% by over two years, with an average time overrun of 36.13 months.
The government's emphasis on expediting project completion is evident, with 22 projects added and 13 completed in January. Since January 2024, 229 projects worth Rs 2.1 lakh crore have been completed.
While the ratio of cost overrun in large central government projects decreased to 18.41% in January, Railways and Road Transport and Highways sectors accounted for the majority of projects facing cost overruns, with Railways at 55%.
Approximately 40% of Railways and Roads projects also experienced time overruns. Additionally, nearly 373 projects lacked a proper commissioning date, potentially leading to further discrepancies in reported time and cost overruns. The report suggests that some project agencies have not revised cost estimates and commissioning schedules, possibly leading to underreported figures of time and cost overruns.