Project delays cost Rs 32,000 crore to nation

It said the cost overruns were mainly due to "inordinate delays in government clearances, lack of funds and inter-ministerial coordination." Assocham suggested task forces or special committees be setup to ensure speedy finalisation of contracts, to solve land acquisition and ensure proper monitoring of the projects.

It said 43 railway projects, eight in the coal sector and one each in steel and power were starved of funds. Land acquisition problems and civil works delays affected 34 railway projects, 19 coal and four power projects, it said.

Delays in the award of contracts led to cost escalation in 16 railway, 12 surface transport and four information and broadcasting projects while slow progress in implementation of projects and delay in equipment supply also contributed to cost overruns.

It said 36 coal projects had time overruns ranging from 2-189 months, 15 power projects were delayed by 22-136 months while 62 railway projects were held up by 2-132 months.

The association said its analysis showed that projects in the mining sector had the lowest delays of eight months, followed by the steel sector at 2-35 months, telecommunications with 3-48 months and civil aviation by 2-57 months.