DELAY IN MEGA-PROJECTS

---

RAJYA SABHA

As on 1^st June, 2002, 38 mega projects (costing more than Rs. 1000 crore) are being monitored by the Ministry of Statistics and Programme Implementation. Of these, 11 projects have registered time overruns, while 14 projects have recorded cost overruns with reference to their approved schedule/cost.

The steps taken to avoid such delays include:

1. review of projects on monthly as well as quarterly basis by the Government;
2. in-depth critical review of the progress by the project authorities and the Administrative Ministries, alongwith follow up with the State Governments ( for acquisition of land, rehabilitation related issues, expediting of forest clearances and provision of infrastructure facilities like water and power, ensuring law & order at project sites, etc.), consultants and other agencies;
3. setting up of an Empowered Committee in the administrative Ministries concerned for resulution of problems;
4. inter-ministerial coordination for resolving problems of inter-ministerial nature;
5. provision of matching funds in the annual budget on the basis of updated costs to facilitate the completion of the projects in advanced stages of implementation; and
6. high level reviews, including reviews by the Minister-in-charge.

In order to bring accountability in the execution of projects, Standing Committees have been set up in 25 Ministries/Departments, excluding Railways, for projects costing Rs. 50 crore and above, which have reported time and cost overruns. These Committees are headed by Additional Secretary or Joint Secretary of the Ministry concerned with representatives from Planning Commission, Department of Expenditure and Ministry of Statistics & Programme Implementation. The Standing Committees, set up as per the guidelines of the Planning Commission issued in August, 1998 are mandated to go into the details of time and cost overruns, delineate the areas of responsibility of suggest remedial action. The reports of the Standing Committees are taken into consideration at the time of approval of the revised cost estimates.

This information was given in the Rajya Sabha today by Minister of State for Statistics and Programme Implementation, Shri Vijay Goel in a written reply to a question by Shri Ramachandra Khuntia.