Infra investments on track; high input cost, interest major concerns

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New Delhi, Sep 28 (UNI) About 67 per cent of the respondents to a survey felt infrastructure investments are on track, while the results also revealed that the increase in inputs and interest costs have led to cost overrun and is a cause for concern.

The Confederation of Indian Industry (CII) Survey got the feedback from CEOs of major infrastructure developers and financiers of infrastructure projects.

The incidence of increase in inputs costs, as revealed by 46 per cent of the respondents, is expected to be in the range of 10-20 per cent of the infrastructure project costs and another 23 per cent of the respondents expected this incidence to be more than 20 per cent.

The Survey revealed that 46 per cent of the respondents expected the increase in costs to be absorbed by infrastructure project developers, while 15 per cent of the infrastructure companies expected the cost to be passed on to the clients.

About 58 per cent of the respondents expected that there would be a renegotiation of prices, which may lead to delays in implementation.

The Survey found 81 per cent of the respondents feeling that land acquisition was the most important impediment to infrastructure project implementation, while 77 per cent felt environment clearance and 58 per cent said other government approvals were the primary reasons for delays in project implementation.

The other reasons cited by the respondents as bottlenecks in implementation are lack of coordination among various implementing agencies, change in scope and cost variation and construction related delays, the Survey said.

UNI MP SG PM1247

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