CONSUMPTION EXPENDITURE DATA OF FOOD

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Review of Central Sector Projects on quarterly basis is being done in the concerned administrative Ministry. In addition, the Planning Commission has introduced quarterly performance review recently. As on 31st December, 2001, out of 458 projects, 208 projects have reported cost overrun of 70.3% with respect to the original approved cost. The reasons for cost escalation include: i. changes in rates of foreign exchange and other statutory duties; ii. high cost of environmental safeguards and rehabilitation measures for project affected people; iii. high cost of land acquisition; iv. change in the scope of project; v. initial underestimation of the original project cost; vi. higher prices being quoted by the bidders for certain turkey packages and equipment; and vii. general inflation. The quarterly review of the project enables the Government to identify the constraints and helps them to resolve the problems affecting the implementation of the projects. In-depth critical review of the progress by the Administrative Ministry with the Project Authorities and follow up with the State Governments for acquisition of land as also provision of infrastructure facilities at projects etc, enables the Government to minimize delays and cost overruns in completing the projects. The additional review by the Planning Commission would focus on availability of funds.