111 power projects out of total 1,200 are running behind the cost-overruns of ₹61,694 crore and an average time-overrun of 42 months.
For decades, the government is allocating taxpayers’ money into various rural electrification programmes and energy projects but has failed to provide reliable power supply. The delays in the energy projects are the main reason for the lack of nationwide electricity coverage.
The delays happen majorly due to bureaucratic hurdles, slow land-acquisition process, and lack of coordination between the state and central governments. The delay in projects results in cost and time overruns, which means that the cost of these projects increases manifold the budgeted amount. This is wastage of taxpayer’s money.
In the past 40 years, the government has launched 1,200 power projects, out of which about 600 are yet to be completed. The lack of coordination between central and state governments is the primary reason behind delays. The initial cost of these projects was roughly ₹469,177 crores, but due to unnecessary delays, each project has incurred an average cost hike of ₹550 crore.
111 projects out of total 1,200 are running behind schedules and have incurred cost-overruns of ₹61,694 crore and an average time-overrun of 42 months. Don’t we deserve better?