Lok Sabha Question No. 3907 (UNSTARRED), answered on 2019-01-03
Subject: Cost Overrun of Power Projects
Ministry: POWER
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.3907 TO BE ANSWERED ON 03.01.2019

## COST OVERRUN OF POWER PROJECTS

3907.  ADV. NARENDRA KESHAV SAWAIKAR:

Will the Minister of POWER be pleased to state:

(a) whether the Government is aware that a large number of power projects have reported cost overruns as per the recent report released by the Ministry of Statistics and Programme Implementation;

(b) if  so,  the  details  thereof  along  with  the  reaction  of  the  Government thereto;

(c) whether the Government monitors the execution of these projects from time to time;

(d) if so, the details thereof; and

(e) whether some of the power projects are not executed properly and if so, the  details  thereof  along  with  the  remedial  action  taken/being  taken  by  the Government in this regard?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY

( SHRI  R. K. SINGH )

(a) to (e) :    As  per  the  recent  report  (September,  2018)  released  by  the Ministry  of  Statistics  and  Programme  Implementation  (MoSPI),  105  central sector  power  projects  are  under  monitoring  through  Online  Computerised Monitoring  System  (OCMS).  Out  of  105  projects,  43  central  sector  power projects have reported cost overruns.

...........2.

The  delayed  power  projects  are  monitored  rigorously  at  various levels in Ministry of Power (MOP) and Central Electricity Authority (CEA).  The OCMS  of  MoSPI  also  envisages  monitoring  of  milestones  of  the  various infrastructure  projects.  The  concerned  Central  Power  Sector  Undertakings (CPSUs) under MOP are regularly updating the milestones set for each project, to facilitate better monitoring.

Following mechanism is in place to ensure the timely commissioning of power projects:

-  The  CEA  monitors  the  progress  of  under  construction  power  projects through frequent site visits and interaction with the developers, equipment  suppliers  and  other  stakeholders  to  identify  the  issues critical for commissioning of projects and help in resolving them.
-  MOP also reviews the progress of ongoing power projects regularly with the concerned officers of CEA, equipment manufacturers, State Utilities/ CPSUs/ Project developers, etc.
-  Issues  are  also  raised  in  PRAGATI,  for  proactive  problem  solving  and timely implementation, as and when required.
-  The Project Monitoring Group (PMG) in the Prime Minister's Office also reviews the issues relating to pending projects. The developers of the projects  can  raise  the  project  specific  issues  on  PMG  portal  for  their resolution with the concerned agencies/ departments.
-  Time bound appraisal norms have been evolved in CEA for examination of DPRs of Hydroelectric projects.
-  The project Implementation parameters/ milestones are incorporated in the annual Memorandum  of  Understanding  (MoU)  signed  between respective power CPSU's and MOP and the same are monitored during the quarterly performance review meeting of CPSU's and other meetings held in MOP/CEA.
-  Matters are taken up with State Government/District Administration and they  are  extending  help  to  the  project  implementing  agencies  in resolving Right of Way (ROW) issues.

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