Lok Sabha Question No. 2753 (UNSTARRED), answered on 2018-01-03
Subject: Monitoring of Project
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: JANAK RAM

## 2753.  SHRI JANAK RAM:

Will the Minister of STATISTICS AND PROGRAMME IMPLEMENTATION be pleased to state:

- (a)  whether  the  Government  schemes  have  been  completed  within the scheduled time frame, if so, the details thereof;
- (b) whether the costs of different stalled projects are increasing due to adverse market conditions; and
- (c) if so, the details thereof and the details of the action taken/proposed by the Government in this regard?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION  AND  MINISTER  OF  STATE  IN  THE  MINISTRY  OF PARLIAMENTARY AFFAIRS [SHRI VIJAY GOEL]

- (a) Government in the Ministry of Statistics and Programme Implementation  monitors  on-going  Central  Sector  Infrastructure  Projects costing Rs. 150 crore and above on time and cost overruns, on the basis of information provided by the project implementing agencies on the On-line Computerized Monitoring System (OCMS) of this ministry. As on 01.10.2017, 27 projects have been completed during 2017-18.  Out of these, 3 projects have  been  reported  completion  within  the  scheduled  time  frame.  The details of such projects are at Annexure.
- (b) The reasons for time and cost overruns are project-specific, depend on  a  variety  of  technical,  financial  and  administrative  factors,  and  differ from project to project. However, as reported by the project implementing agencies  on  the  OCMS  of  this  ministry,  the  main  reasons  for  increase  in

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA UNSTARRED QUESTION NO. 2753

## TO BE ANSWERED ON WEDNESDAY, THE 03 rd  JANUARY, 2018

## MONITORING OF PROJECT

cost of the projects are: Under-estimation of original cost; Changes in rates of  foreign  exchange  and  statutory  duties;  High  cost  of  environmental safeguards  &  rehabilitation  measures;  Spiraling  land  acquisition  costs; Shortage of skilled manpower/ labour; Changes in Project scope; Monopolistic pricing by vendors of equipment services; General Price rise / inflation and Time Overruns. (c)      The  major  action  plan  undertaken  to  ensure  completion  of  Central Sector  Infrastructure  Projects  without  time  and  cost  overruns  include: rigorous project appraisal; On-line Computerized Monitoring System (OCMS) for  better  monitoring;  setting  up  of  Revised  Cost  Committees  in  the Ministries for fixation of responsibility for time and cost overruns; regular administrative Coordination Committees (CSPCCs) in the States under the concerned Chief Secretaries for  removal of bottlenecks and for facilitating the speedy implementation review of infrastructure projects by the concerned Ministries; and setting up of Central Sector Projects of major projects.

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## STATEMENT REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO 2753 DUE FOR ANSWER ON  03.01.2018

## DETAILS OF COMPLETED CENTRAL SECTOR PROJECTS COSTING Rs. 150 CRORE AND ABOVE WITHIN TIME

| SN    | PROJECT                                                                                              | AGENCY   | DOA     | DOC ORIGINAL   | DOC ANTICIPATED   | COST ORIGINAL (Rs. In crore)   | COST ANTICIPATED (Rs. In crore)   |
|-------|------------------------------------------------------------------------------------------------------|----------|---------|----------------|-------------------|--------------------------------|-----------------------------------|
| Power | Power                                                                                                | Power    | Power   | Power          | Power             | Power                          | Power                             |
| 1     | SUB-STATION WORKS ASSOCIATED WITH SYSTEM STRENGTHENING IN SOUTHERN REGION FOR IMPORT OF POWER FROM E | PGCIL    | 11/2014 | 11/2017        | 04/2017           | 972.42                         | 972.42                            |
| 2     | WARDHA- HYDERABAD 765 KV LINK                                                                        | PGCIL    | 01/2015 | 05/2018        | 07/2017           | 3662.02                        | 3662.02                           |
| 3     | TRANSMISSION SYSTEM ASSOCIATED WITH DARLIPALLI TPS                                                   | PGCIL    | 01/2016 | 06/2018        | 06/2017           | 187.04                         | 187.04                            |