Even as the government tries to expedite project clearances through the Cabinet Committee on Investment (CCI),as many as 301 central sector projects of over Rs 150 crore are delayed resulting in cost overruns of Rs 1.74 lakh crore.
As on October 1,2013,738 on-going Central sector projects were on the monitor of this ministry. 301 projects are delayed as against their original date of commissioning, Srikant Jena,minister of state for statistics and programme implementation informed the Rajya Sabha in a written reply on Friday. The original cost of all 738 projects was Rs 9,04,955.18 crore. The anticipated cost of these projects is Rs 10,78,958.46 crore.
So the implementation of these projects would require Rs 1,74,003.18 crore more than the envisaged original cost. Jena said,The main reasons for delay in implementation are law and order problems,delay in land acquisition,rehabilitation and resettlement problem,fund constraints,delay in forest and environmental clearances,right- of-way or right-of-use issues,delay in supply of material and contractual issues.
The ministry of statistics and programme implementation (MoSPI) is entrusted with the task of monitoring the progress of Central core sector projects with investments of over Rs 150 crore. The major steps undertaken to ensure timely completion of projects includes rigorous project appraisal,online monitoring system,setting up of standing committees in the ministries for fixation of responsibility for time and cost overruns and setting up of the CCI.
The CCI,which is chaired by the Prime Minister,along with special project monitoring group housed in the Cabinet Secretariat has till date expedited approvals for projects with investments to the tune of Rs 3.86 lakh crore. Finance minister P Chidambaram is hopeful that with faster clearances of projects through the CCI will help unlock investments into the economy.