India infrastructure is facing difficult times, which led to hit by the cost overruns totalling around Rs. 4.4 Lakh crore, and led to delays which impacted the infrastructure process. Read below!

 India drawing closer to more than 445 infrastructure projects, the government’s strategic plans encourage the infrastructure sector to provide a boost of opportunities for Indian growth. Several countries upgraded their real estate by infrastructure development but, the economy led to some difficult times. For 445 infrastructure projects, each necessity demand for investment around Rs. 150 crores, which can be exceeded. It is been hit by cost overruns totalling around Rs. 4.4 lakh crore, which is said according to a report.

 During the period of Covid, delays in infrastructure projects have been recorded on large scale due to the multiple wave impact on the projects. Program implementation of infrastructure projects and the ministry of statistics projects was around Rs. 150 crores of 1,673 infrastructure projects. 445 projects are reported to be cost overruns and 557 projects were delayed.


445 projects are reported to be cost overruns and 557 projects were delayed.

On Ministry’s latest report, said “Total original cost of implementation of the 1,673 projects was Rs. 22,23,791.78 crore and their anticipated completion cost is likely to be Rs. 26,64,649 crore. This report reflects overall cost overruns of Rs. 4,40,857.40 crore, its original cost is 19.82%” which was reported on December 2021.

Setback faced by the infrastructure sector.

Eventually, infrastructure reports announced the expenditure incurred on these projects till December 2021 which is Rs 13,08,766.65 crore, which is 49.12 percent of the anticipated cost of the infrastructure projects. The number of delayed projects decreased to 420 if its delay is calculated on the basis of the latest schedule of completion. Recently, for 838 projects neither the tentative gestation period nor the year of commissioning has been reported.

Due to the three waves of Covid leading to infrastructure projects getting delayed, it has impacted real growth in economic activities as well. Since the Covid, out of the 557 delayed projects. As the range of 1-12 months, it is observed 97 projects have overall got delayed, and for 13-24 months 127 infrastructure projects have been delayed. In 25-60 months 217 projects were delayed and the range of delays is seen over the period of months, repeatedly.


COVID-19 is a huge reason for the delay in the implementation of these infrastructure projects.

The infrastructure sector reported reasons behind the various projects to execute agencies which include delay in land acquisition, delay in prevailing for forest and environment clearances, and lack of infrastructure support and linkages.

 Other reasons for Delay were a delay in tie-up for project financing, delay in finalisation of detailed engineering, delay in tendering, change in scope. Not only in these sections but delay in ordering and equipment supply, law and order problems which consumed most of the time, effort and affected the economy as well.

Also, it is observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time and cost overrun figures are under-reported.