Economic survey: Over 52% infra projects running behind schedule

NEW DELHI: The pre-budget economic survey today said that over 52 per cent of the ongoing infrastructure projects are running behind schedule.

"As on October, 2010, out of the 559 projects, 14 are ahead of schedule, 117 are on schedule and 293 are delayed," the Survey said quoting Department of Programme Implementation (DPI) data.

DPI monitors the progress in central sector projects costing Rs 150 crore and above on a monthly basis.

In the road transport and highways sector, 51 projects have reported delay of up to 36 months, 20 power projects up to 18 months over the targetted schedule of completion. A total of 16 projects in oil sector have reported up to 16 months overrun, the Survey, tabled in the Parliament today, said.

Stating the level of investment and capacity addition achieved so far in the current Plan period is indicative of an "optimistic outlook" for the entire infra sector, the Survey, however, said "several non-financing" constraints needed to be urgently addressed to avoid time and cost overruns.

These include problems of tendering of unviable projects, bad quality of engineering and planning at the Detailed Project Report stage, lack of standardised and sub-optimal contracts, land acquisition delays, slow approval processes and weak performance of management in nodal agencies and PSUs among others.

"There is an urgent need to streamline land acquisition and environment clearance for infrastructure projects," it said, adding that capacity addition was lower than aimed in power, roads and railway lines.