Lok Sabha Question No. 5361 (UNSTARRED), answered on 2018-03-28
Subject: Rise in Cost Due to Delayed Projects
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: AJAY (TENI) MISRA, RAJ KUMAR SAINI, JANAK RAM, ANOOP MISHRA, BHARAT SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA

## UNSTARRED QUESTION NO. 5361 TO BE ANSWERED ON WEDNESDAY, THE 28 th  MARCH, 2018

## RISE IN COST DUE TO DELAYED PROJECTS

5361.  SHRI AJAY MISRA TENI:

SHRI RAJKUMAR SAINI:

SHRI JANAK RAM:

SHRI ANOOP MISHRA:

SHRI BHARAT SINGH:

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

- (a) whether the Government is monitoring projects especially those belonging to infrastructure sector and if so, the details thereof;
- the names of the Ministries which have maximum cases of rise in cost due to delayed projects and the total amount of rise in
- (b) cost of these delayed projects;
- (c) whether the cost  of  various  stranded  projects  is  increasing  in the country due to adverse market conditions; and
- (d) if  so,  the  details  thereof  along  with  the  steps  taken  by  the Government to complete all the said  projects  in  a  time  bound manner?

## 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.

The details of Central Sector Infrastructure Projects are available in flash report at www.cspm.gov.in/publications.

- (b) The  details  of  Sectors  (corresponds  to  nodal  Ministries)  which  has maximum  cases  of  rise  in  cost  due  to  delayed  projects  and  the  total amount  of  rise  in  cost  of  these  delayed  projects  are  available  in  flash report at www.cspm.gov.in/publications.
- (c) 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 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.
- (d)      The  major  steps  taken  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 review of infrastructure  projects  by  the  concerned  administrative  Ministries;  and setting up of Central Sector Projects Coordination Committees (CSPCCs) in the States under the concerned Chief Secretaries for removal of bottlenecks  and  for facilitating  the  speedy  implementation  of  major projects.

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