LOSSES IN NON-COMPLETION OF PROJECTS

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LOK SABHA

As on 31.12.2001 there were 458 projects costing Rs.20 crore and above in the central sector. Of these, 208 projects have reported cost overrun of 70.3 per cent and 154 projects have reported time overrun, ranging from 1 to 204 months, with respect to the originally approved cost and schedule. The original cost of these 458 projects was Rs.1,64,947 crore and the now anticipated cost is Rs.2,04,261 crore thus showing an overall cost overrun with respect to the original estimates of 23.8 per cent.

The steps being taken by the Government vary from project to project and time to time to tackle the situation. However, the general measures taken by the Government are monthly and quarterly review at appropriate levels, inter-ministerial coordination for resolving problems of inter-ministerial nature, making available matching funds on yearly basis based on updated costs to complete the projects, etc.

This information was given in the Lok Sabha today by Dr. Vallabhbhai Kathiria, Minister of State for Heavy Industries and Public Enterprises in a written reply to a question by Shri Jai Prakash.