Shillong, Dec 31: Meghalaya has achieved a significant milestone with none of its 15 ongoing infrastructure projects experiencing cost overruns. This stands in stark contrast to the common challenges faced by infrastructure projects across the Northeast, where cost escalations have long been a persistent issue.
The Ministry of Statistics and Programme Implementation (MoSPI), tasked with monitoring central sector infrastructure projects costing ₹150 crore and above, revealed a positive update in its November report. The monitoring is based on data from the Online Computerized Monitoring System (OCMS), reported by various line ministries and implementing agencies.
According to the report, projects in Meghalaya, including the development of a permanent campus for the National Institute of Technology (NIT) at Sohra, the construction of the International Centre for Performing Arts and Culture, and road widening initiatives, are all progressing within their allocated budgets. The cumulative expenditure for these projects stands at ₹3,171.3 crore.
The reasons for having no cost overrun could be efficient project management and proactive stakeholder engagement. Early identification and resolution of challenges, particularly regarding land acquisition and clearances could be another reason. The projects are also on time.
Some of the challenges in the Northeast which lead to cost overruns are geographical constraints like hilly terrain and unpredictable weather make project execution costly and slow. Infrastructure deficits like weak existing infrastructure complicate logistics and increase operational expenses. There is the issue of environmental clearances on sensitive ecological zones delaying approvals and rising compliance costs and socio-political factors like Land disputes and resistance from local communities add to delays.
The original cost of projects in the Northeast according to the report is Rs 65,567 crore and the revised/anticipated costs are Rs 75,299 crore resulting in a cost overrun of 14.85 per cent. The cumulative expenditure to date is 43,888 crore.
As of November 2024, the total original cost of 1,742 ongoing projects in the country was estimated at Rs 26.02 lakh crore. However, this figure has surged to Rs 28.38 lakh crore due to revisions, and further anticipated estimates push it beyond Rs 31.03 lakh crore. This marks an alarming overrun of 19.4% from the revised costs and nearly 30% from the original budget.
