Time and Cost Overruns in Implementation of Infrastructure Projects, Problems and Remedies

J.L.Narayan, Joint Adviser Infrastructure and Projects, Ministry of Statistics and Programme Implementation

Implementation of infrastructure projects in India has improved substantially. Although the complexity of infrastructure projects have increased but capacity to handle them efficiently is inadequate on many fronts that is why, time and cost overruns in projects still persists.

It emerges from the analysis of the Central Sector Projects by the Ministry of Statistics and Programme Implementation that many of the projects suffer from inadequacies in project formulation and implementation, resulting in large time and cost overruns, affecting the very viability of the projects and acting as drag on the economy. The analysis has also identified several factors responsible for time and cost overruns – some within the control of the enterprises and some beyond their control.

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NBM&CW January 2011

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