According to the minister the slow pace of implementation of this modernisation programme has increased the cost of the project by almost Rs 2,000 crore. It is also been seen that this delay in work has also exceeded the duration of the project for about six months.
Thus the entire project is running in cost as well as time overruns. The cost of the project which was earlier coming out to be Rs 14,443 has gone upto Rs 16,408 crore due to the delays. The company has also received an approval for its Iisco project from the government in July 2006 which included a 7-metre tall coke oven battery, a new Blast Furnace and a wire rod and bar mill.
According to the company these delays are mainly due to unfriendly soil conditions leading to increase in civil and structural work and further extra time consumed for the removal of underground boulders and hillocks The company is expecting the project to begin by December 2011 which is delayed for almost 6 month from the earlier target of June 2011.
Further the company is also in talks with Posco on the proposed joint venture for Finex plant on its surplus land in Bokaro. Earlier other companies such as Tata Steel and JSW Steel also went for such expansion programmes to increase their market share in the Indian steel market.