The 264 projects costing Rs. 100 crore and above
belonging to 13 Ministries, on the monitor of the Ministry of
Statistics and Programme Implementation, had registered an overall
cost overrun of Rs. 15,050.15 crore with reference to the latest
approved cost of Rs. 1,84,8555.59 crore as per the reports available
till 1.07.2003. Fund constraints, delay in land acquisition, change
in scope of projects, delay in award of contracts and slow progress
by contractors are the main reasons for the slippages in date
of commissioning of projects. The cost escalation of projects,
sector-wise, under the Administrative control of various Ministries
are given below:
_____________________________________________________________________
Cost (Rs. Crore) Cost Overrun
(*)
Ministry/Sector No. of Latest Now (in Rs.
Crore) %
Projects Approved Anticipated
Atomic Energy 04 26877.00 26050.00 -827.00 -3.1
Coal 06 5262.87 5231.28 -31.59 -0.6
Fertilizers 01 509.40 509.40 0.00
0
Mines 02 2541.98 2541.98 0.00
0
Steel 03 731.07 731.07 0.00
0
Petroleum 24 31206.00 33152.91 1946.91
6.2
Power 34 52500.06 56538.65 4038.59
7.7
Health & FW 02 691.84 691.84 0.00
0
Railways 85 26526.34 36528.95 10002.61 37.7
Road Transport 94 24603.75 24521.22 -85.53 -0.3
& Highways
Shipping & Ports 07 2554.31 2557.47 3.16
0.1
Telecommunications 01 279.97 279.97 0.00
0
Urban Development 01 10571.00 10571.00 0.00
0
________________________________________________________________________
Total 264 184855.59 199905.74 15050.15
8.1
(* Negative figures show saving on the latest approved costs)
The steps taken by the Government to improve project implementation
include:
- adoption of two-stage clearance system and stricter appraisal
of project reports before investment approval;
- taking up of projects for implementation only after funds
have been fully tied up;
- in-depth review of projects on monthly as well as quarterly
basis by the Government;
- setting up of an Empowered Committee in the administrative
Ministries for review of departmentally executed projects;
- setting up of Standing Committees in the Ministries/Departments
to fix responsibility for time and cost overruns;
- appointment of nodal officers for each project with continuity
of tenure; and
- issue of guidelines on standard bidding documents for adoption.
