A decade’s delay in 3 projects escalated cost by 17,999 Cr:Govt Informs Rajya Sabha MP Parimal Nathwani

New Delhi, 7 December 2011

A decade long delay of three central sector projects caused cost escalation to the tune of Rs. 17,999.65 Crore. The union minister of state for statistics and programme implementation Mr. Shrikant Kumar Jena informed rajya sabha member Mr. Parimal Nathwani’s in a written reply. Mr. Nathwani had asked information about delay in infrastructure core sector industries. As per the minister’s statement, out of 553 projects costing Rs. 150 Crore and above as on 31st August, 2011, only 3 projects were delayed beyond a decade.

The minister stated that the main factors leading for the delay included delay in land acquisition, delay in procurement of equipment, law and order problems, inadequate infrastructure, delay in mobilization by contractors, general cost escalation due to delay, increase in price of cement and steel and exchange rate variations.

In accordance with the statement, the government took several steps to reduce the delays and ensure timely completion of the projects. Stricter appraisal of projects by way of inter-ministry consultations and adoption of two-stage clearance system, monthly monitoring of output/performance of infrastructure, monthly and quarterly monitoring of time and cost overrun of projects costing Rs. 150 crores and above, follow up with state governments in respect of problems, appointment of nodal officers for each project, adoption of computer network based monitoring and organizing training courses and seminars on projects planning, monitoring and projects management etc were the steps undertaken; the minister stated.

On advice of the Centre, thirteen states constituted the Central Sector Projects Coordination Committees under the respective Chief Secretaries to facilitate Central Sector Projects; the reply added.