50 pc govt projects behind schedule

Cost overruns of state,Centre projects estimated at Rs 45,500 crore,which is 17 pc of the original....

At a time when the UPA government is battling a rising fiscal deficit and struggling to meet enhanced commitments for funding social sector programmes, it is now faced with some troubling data. Nearly 50 per cent of Central- and state-run projects are behind schedule,resulting in cost overruns of over Rs 45,000 crore.

The statistics and programme implementation ministry,which routinely monitors the progress of these projects,has estimated that 423 of 925 projects each costing more than Rs 20 crore are delayed. In many cases,the project proponents failed to acquire land in time to start the project resulting in cost escalation, ministry sources said.

In its report to the Prime Ministers Office,the ministry said the delay in execution of projects mostly in the power and roads sectors was one of the main reasons for the cost overrun. Cost overrun in 423 delayed projects is Rs 45,500 crore,which is 17 per cent of the original cost of Rs 2,46,070 crore, the ministry observed. Indias efforts to have a sound infrastructure has taken as beating with as many as 60 per cent projects in the power sector and about 40 per cent in the road sector running behind schedule.

The report highlights that delay in execution of projects has resulted in maximum escalation of costs in bigger states such as Maharashtra,Assam and Jammu and Kashmir. In the case of Jammu and Kashmir,where 13 projects are nationally monitored,the cost escalation is even more than the original cost Rs 10,000 crore for projects worth Rs 8,132 crore. In Maharashtra,the cost of 37 projects monitored has increased by around 5,200 crore from the initial estimated cost of Rs 28,420 crore.

In Assam,the increase is much higher for lesser number of projects. For 36 projects being monitored,the cost escalation is of 7,100 crore. In case of Mizoram,the cost of the project has doubled because of the delay in land acquisition. The 34 projects being executed by more than state has witnessed delay of six months to two years resulting in cost escalation of over Rs 4,000 crore.

Sources in the infrastructure committee under the Planning Commission said the government now wants mandatory acquisition of 70 per cent of land before its approval to reduce escalation of cost because of the delays.