news details |
|
|
| J&K’s 13 projects worth Rs 8132 Cr register Rs 10,000 Cr cost escalation | | | Early Times Report
Jammu, Aug 1: Even as the state government continues to ask Center for more funds for infrastructure development, at least 13 centrally funded prestigious projects in Jammu and Kashmir are not only running behind schedule but have also reported cost escalation running beyond original cost old projects.
According to the details worked out by Ministry of Statistics and Programme Implementation, in Jammu and Kashmir, where 13 projects are delayed, the cost escalation is even more than the original cost of the projects – Rs 10,000 crore for projects worth Rs 8,132 crore.
The Ministry’s data shows that around 50% of projects in the sector across country are running behind schedule, resulting in an extra burden of around Rs 40,000 crore on the exchequer.
The Ministry of Statistics and Programme Implementation, which monitors the progress of infrastructure projects, has pointed out that 423 of 925 projects, each costing Rs 20 Crore or more, have failed to be completion date.
The cost overrun, according to a ministry report, in these 423 delayed projects is Rs 38,663.67 crore, which is 15.35% of their original cost of Rs 2,46,070 crore.
What is failing India's effort to improve infrastructure is the delay in execution of crucial projects mostly in the power and roads sectors which is also one of the main reasons for the cost overrun. "As many as 60% of projects in the power sector and about 40% in the road sector are running behind schedule," a senior govt official pointed out.
A government official attributed the delay in many cases to failure of the project implementation agencies or companies to acquire land in time to start the project which results in cost escalation. Among the states, Maharashtra tops the list with the maximum number of 37 projects running behind schedule. It is followed by Assam (36), UP (32) and Andhra Pradesh (31).
In Maharashtra, the cost of 37 projects monitored has increased by around Rs 5,200 crore from the initial estimated cost of Rs 28,420 crore.
Second on the defaulting list is Assam with 36 projects failing to meet the deadline resulting in cost escalation of Rs 7,100 crore.
Assam is followed by UP with 32 delayed projects (original cost of Rs 7,353 crore) and Andhra Pradesh with 31 projects (original cost Rs 14,367 crore and cost overrun of Rs 5,000 crore).
In case of Mizoram, the cost of the lone monitored project doubled (from Rs 368.72 crore to Rs 689 crore) because of the delay in land acquisition.
The report also highlights that 34 projects which are being executed by more than one state witnessed delay of six months to two years resulting in cost escalation of over Rs 4,000 crore.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
 |
|
|
