Escalating Costs: India's Infrastructure Budget Crisis Unveiled

A report presented in the Indian Parliament reveals that 438 infrastructure projects, each costing over Rs 150 crore, have experienced a significant cost overrun totaling Rs 5.18 lakh crore. The main factors contributing to the overruns include under-estimation, change in forex rates, and high acquisition costs.

The Indian Parliament was informed of a substantial cost overrun affecting 438 infrastructure projects, each with a budget exceeding Rs 150 crore. These overruns amount to a staggering Rs 5.18 lakh crore.

Minister of State for Statistics & Programme Implementation, Rao Inderjit Singh, disclosed these figures to the Rajya Sabha, stating that the original cost estimation of Rs 8.38 lakh crore has now ballooned to Rs 13.56 lakh crore for these projects.

The primary culprits behind this surge include under-estimation of costs, fluctuations in foreign exchange rates, rising land acquisition expenses, and workforce shortages, alongside various other economic and logistical challenges.

(With inputs from agencies.)