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224 infra projects see cost overruns of Rs 2.11 trillion

These were among over 600 projects that have been delayed for various reasons including law and order problems and delays in land acquisition, Union Minister Gen (Retd) V K Singh informed Lok Sabha during Question Hour.

The Ministry of Statistics and Programme Implementation, headed by Singh, was monitoring 738 projects as on January 1.

It monitors on-going central sector infrastructure projects costing Rs 150 crore and more on the basis of information provided by the implementing agencies.

“Of these 738 projects, 315 projects were showing time overruns, 224 projects were showing cost overruns and 76 projects were showing both time and cost overruns with respect to their original project implementation schedules,” he said. The cost overruns of the 224 projects have been estimated at little over Rs 2.11 lakh crore, as per project-wise cost overruns data provided by the Ministry.

Emphasising that efforts were being made to ensure timely completion of projects, Singh said delays were on account of many factors like delay in land acquisition, getting environmental clearances, fund constraints, rehabilitation and resettlement issues.

One of the reasons for cost and time overruns in projects is “improper funding at the initial stage”, he noted while stressing the need for realistic assessment at the start of the projects itself. To ensure better monitoring, Singh said Ministries have been asked to set up Project Management Groups (PMG).

Online Computerised Monitoring System (OCMS), setting up of standing committees in the administrative ministries for fixation of responsibility for time and cost overruns have been taken up.
Besides, Singh said the central sector projects coordination committees are being set up in states under chief secretaries for removing “bottlenecks and for facilitating speedy implementation of
major projects”.
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