Rlys146; projects running late due to lack of funds: PAC report

It is no secret that the Railways Ministry keeps on announcing new railway lines and gauge conversion works each year in the Rail Budget...

It is no secret that the Railways Ministry keeps on announcing new railway lines and gauge conversion works each year in the Rail Budget, even as a large number of such projects already being undertaken have been languishing for decades.

Now, examining the issue, the Public Accounts Committee PAC of Parliament has said that considering the present rate of funding, Railways would require another 38 years to complete pending new line projects and another 15 years to complete the pending gauge conversion projects.

In its latest report, tabled in Lok Sabha on Saturday, the PAC has said than an 8220;analysis of data relating to 149 ongoing gauge conversions and new line projects included in the Works Programme of 2005-06 revealed that the cost of these projects, originally estimated at Rs 39, 287.13 crore has been revised time and again due to delay in completion and is now estimated at Rs 54,716.65 crore.8221;

The PAC report says that the progress on 105 out of these 149 projects was less than 50 per cent and the work was more than 90 per cent complete only in 24 projects. The delay in completion of these projects has led to a cost increase of more than three times from Rs 5,700 crore to Rs 17,300 crore. But the Ministry had allocated a meager Rs 690 crore for gauge conversion works and Rs 652 crore for new line projects.

The Railways Ministry also faced flak for taking up projects for socio-economic development of backward areas without taking into account the fund availability. 8220;As a result, the resources were so thinly spread that most of the projects, commenced 10 to 25 years ago, were incomplete and no target dates were available for their completion,8221; states the report.

Saying that Railways8217; efforts to take up projects on socio economic development are well-intended and appreciated, the PAC has observed that the lack of funds for these projects has led to delays ranging between 5 to 20 years and consequent cost overruns 8220;thereby defeating the very purpose of their commencement8221;. 8220;This has resulted not only in sheer wastage of public money but also deprives other commercially viable projects of funds,8221; states the report, pointing out that 8220;out of 95 projects taken up on socio-economic consideration during the 9th and 10th Plans, only eight have been completed so far, which is anything, but regrettable.8221;

The PAC further notes that projects undertaken for augmentation of traffic facilities were suffering for want of funds because Railways had not assessed its capacity properly and projects were undertaken without giving due regard to the availability of funds.

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The report also indicted the Railways for shoddy planning which resulted in a situation where 8220;completed portions of projects were not utilised or the works were executed in such a manner that the assets created were not likely to be utilised till the entire project was completed8221;.