Cost over-run of 1,332 Central projects is Rs 2.23 lakh cr, says expert

CHENNAI:

There are 1,332 Union government projects which cost above Rs 150 crore and the cost over-run is Rs 2.23 lakh crore which is 14 per cent more than the original cost, according to a expert from American Association of Cost Engineering.

Quoting the statistics from data published by by Ministry of Statistics and Program, S Sankar, Chair-India Task Force for American Association of Cost Engineering (AACE), International, chair India Task Force and COO of Karle Infra Private Limited said that 253 of the projects are delayed and data does not include projects less than Rs 150 crore, state government projects, corporations, municipalities and private sector.

“While some projects are impacted due to external factors which are beyond the control of the implementing agencies such as land acquisition, regulatory approvals, etc., majority of projects are delayed by factors which can be controlled at the project level through proper planning and project management,” he said while speaking at a national level conference organized by IIT Madras and ACE International’s South India Section.

He said the studies conducted by KPMG also highlights severe skill shortage and growing demand and supply gap of qualified construction professionals in India.  This also results in a high competency shortfall and a wide gap in the project management maturity between West and India, he said.

The conference threw light on the complex nature of megaprojects which make them inherently risky due to long planning horizons and complex interfaces.