Lok Sabha Question No. 2687 (UNSTARRED), answered on 2019-12-04
Subject: Cost Sharing System
Ministry: RAILWAYS
Asked by: Chandeshwar Prasad

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.2687 TO BE ANSWERED ON 04.12.2019

## COST SHARING SYSTEM

## †2687. SHRI CHANDESHWAR PRASAD:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether  the  Railways  has  proposed  to  all  the  State  Governments including  Bihar  that  they  should  come  forward  to  adopt  cost  sharing system  to  ensure  time-bound  completion  of  long  pending  Railway schemes in their State;
- (b) if  so,  whether  the  above  said  system  has  been  adopted  by  the Government of Bihar giving its consent on cost sharing for its schemes in the ratio of 50:50;
- (c) if so, the names of the other States also who have agreed for the said cost sharing proposal; and
- (d) if  so,  the  time  by  when  the  above  said  schemes  are  likely  to  be implemented by the Railways?

## ANSWER

## MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY

## (SHRI PIYUSH GOYAL)

(a) to (d): Presently, Indian Railways have taken up 498 Railway projects of length 49,069 km, costing ` 6.75 lakh crore, which are in different stages of execution/planning/sanction,  out  of  which,  commissioning  of  8,979  km  has been  achieved  and  expenditure  of ` 1.54  lakh  crore  incurred  up  to  March, 2019.

The 498 projects includes 55 Projects falling fully/partly in the State of Bihar of total length 4,953 km and costing ` 71,795 crore. Out of which 1,256 Km

length has been commissioned and an expenditure of ` 20,294 crore has been incurred till March 2019.

Railway projects are sanctioned, based  on demands  raised  by  State Governments,  Central Ministries, Members  of  Parliament, other public representatives  and  Railways'  own  requirement,  participation  by  State Government  or  private  entities  etc.  They  are  taken  up  on  the  basis  of remunerativeness, last mile connectivity, missing links and alternate routes.

No  standing  instructions  have  been  issued  by  Indian  Railways  to  State Government(s)  including  Bihar  that  States  should  come  forward  to  adopt cost  sharing  system  to  ensure  time-bound  completion  of  long  pending Railway schemes in their State. The concept of cost sharing in a project is decided on case to case basis at the time of sanctioning of project.

However,  based  on  requests  of  State  Governments/other  stake  holders  on case to case basis, Ministry of  Railways  have  embarked  upon  cooperative federalism  by  actively  involving  States  in  planning,  development,  financing and  implementation  of  Railway  projects  through  formation  of  State  Joint Venture.  Besides,  States  and  other  stack  holders  are  being  invited  to participate  in  Railway  projects  to  ensure  expeditious  execution  through customer funding and cost sharing and/or providing land free of cost for the project.

In  Bihar  State,  out  of  total  55  projects,  only  01  project  is  on  cost  sharing basis.

Other States in which projects have been taken up on cost sharing basis are Andhra  Pradesh,  Chhattisgarh,  Haryana,  Jharkhand,  Punjab, Rajasthan, Karnataka, Maharashtra, Himachal Pradesh, Odisha, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand.

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