Failure Of PM Modi's Pet Project PRAGATI? 388 Infra Projects Witness Cost Overruns Of Rs 4.65 Lakh Crore

Various project implementing agencies have cited several reasons for time overruns.

Prime Minister Narendra Modi is known for monitoring key development projects himself. For this, PM Modi launched an ambitious multi-purpose and multi-modal platform - “Pro-Active Governance and Timely Implementation” (PRAGATI) on 25th March, 2015. It is said to be a robust system for bringing e-transparency and e-accountability with real-time presence and exchange among the key stakeholders carrying out development projects. As per the government, PRAGATI proved effective in addressing and resolving issues by bringing down the inter-departmental communication gap and thus minimizing the time taken for the implementation of projects and schemes. However, the latest data by the Ministry of Statistics and Programme Implementation paints a grim picture of ongoing development projects.

The ministry's report reveals that a total of 388 infrastructure projects, each with an investment of Rs 150 crore or higher, have encountered cost overruns exceeding Rs 4.65 lakh crore as of July 2023. Among a total of 1,646 projects, 388 projects have experienced cost overruns, and 809 projects are facing delays. "Total original cost of implementation of the 1,646 projects was Rs 23,92,837.89 crore and their anticipated completion cost is likely to be Rs 28,58,394.39 crore, which reflects overall cost overruns of Rs 4,65,556.50 crore (19.46 per cent of original cost)," the ministry's latest report for July 2023 stated.

According to the report, the expenditure incurred on these projects till July 2023 was Rs 15,21,550.38 crore, which was 53.23 per cent of the anticipated cost of the projects, reported PTI. 

However, the silver lining in the report was that the number of delayed projects decreases to 602 if the delay is calculated based on the latest schedule of completion. Further, it stated that for 345 projects neither the year of commissioning nor the tentative gestation period has been reported. Out of the 809 delayed projects, 177 have overall delays in the range of 1-12 months, 192 have been delayed for 13-24 months, 318 projects for 25-60 months and 122 projects have been delayed for more than 60 months.

Various project implementing agencies have cited several reasons for time overruns. These include delays in land acquisition, obtaining forest and environment clearances, and inadequate infrastructure support and connections. Other factors contributing to delays include delayed project financing arrangements, finalization of detailed engineering, alterations in project scope, issues related to tendering, ordering, and equipment supply, as well as challenges stemming from law and order situations.

It may be recalled that Prime Minister Narendra Modi takes PRAGATI review meeting from time to time and the last meeting was held on June 28. During the meeting, PM Modi reviewed projects costing more than Rs 1.21 lakh crore. During PRAGATI meetings, 340 projects having a total cost of Rs 17.05 lakh crore have been reviewed till now.