Lok Sabha Question No. 4777 (UNSTARRED), answered on 2021-03-24
Subject: Cost Escalation in Railway Projects
Ministry: RAILWAYS
Asked by: Bhartruhari Mahtab

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.4777 TO BE ANSWERED ON 24.03.2021

## COST ESCALATION IN RAILWAY PROJECTS

## 4777. SHRI BHARTRUHARI MAHTAB:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether  a  number  of  projects  of  Railways  have  slipped  their deadline/schedule set by the Government for their completion in the country during the last three years and the current year;
- (b) if  so,  the  details  thereof,  Zone,  Year  and  Project-wise  and  the reasons therefor along with cost escalation of such projects due to delay in their completion;
- (c) the  monitoring  mechanism  developed  by  the  Government  to oversee the completion of the said projects within the specified time;
- (d) whether the Government has conducted any enquiry for delay in completion of the said projects during the said period;
- (e) if so, the details and the outcome thereof and if not, the reasons therefor; and
- (f) the  other  steps  taken/being  taken  by  the  Government  in  this regard?

## ANSWER

MINISTER OF RAILWAYS, COMMERCE & INDUSTRY AND CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRI PIYUSH GOYAL)

- (a) to (f): A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (f)  OF UNSTARRED QUESTION NO. 4777 BY SHRI  BHARTRUHARI MAHTAB TO BE ANSWERED IN LOK SABHA ON 24.03.2021 REGARDING COST ESCALATION IN RAILWAY PROJECTS

(a)  &  (b):    As  on  01.04.2020,  513  Railway projects (189 New line, 54 Gauge  Conversion  and  270  Doubling  works)  of  53,039  km  length, costing approx. ` 7.5 lakh Crore are in different stages of planning/sanction/execution, out of which 10,013 km length has been commissioned  and  an  expenditure  of ` 1.86  lakh  crore  has  been incurred upto March, 2020. Project-wise detail including cost, expenditure  incurred  and  outlay  are  available  in  public  domain  on Indian  Railways  website  i.e.  www.indianrailways.gov.in  >  Ministry  of Railways  >  Railway  Board  >  About  Indian  Railways  >  Railway  Board Directorates  >  Finance  (Budget)  >  Pink  Book  (Year)>  Railway-wise Works, Machinery & Rolling Stock Programme (RSP).

Completion  of  a  Railway  project(s)  depends  on  various  factors  like expeditious land acquisition by State Government, forest clearance by officials of forest department, shifting of infringing utilities, statutory clearances  from  various  authorities,  geological  and  topographical conditions of area, law and order situation in the area of project site, number of working months in a year for particular project site due to climatic  conditions  etc.  and  all  these  factors  affect  the  completion time  and  cost  of  the  project(s)  which  is  finally  worked  out  at  the completion stage.

During  the  last  three  years  i.e.  2017-18,  2018-19  and  2019-20,  86 projects (16 New Line, 13 Gauge Conversion and 57 Doubling) of total length  of  5534  km  costing ` 48,258  crore  have  been  commissioned upto   March,  2020.  During   the   current   year,  21  New  line / Gauge

Conversion/Doubling  projects  of  a  total  length  of  1095  km  costing ` 10,980 Crore have been commissioned.

- (c) to (e): In the Indian Railways, there is a well structured mechanism to  monitor  and  review  Railway  projects  at  different  levels  starting from  field  units,  Chief  Administrative  Officer  (Construction),  Zonal Railways,  Ministry  of  Railways  etc.  Also,  the  status,  constraints  and timelines for completion of projects are monitored right upto highest level for early solution to problems. In the overall interest of the nation and  to  ensure  that  projects  are  completed  in  time  without  cost overrun, regular meetings are held with the officials of State Government, concerned Authorities and Forest officials etc. to resolve the pending issues obstructing the progress of projects.

(f):    Various  steps  being  taken  by  the  Government  for  effective  and speedy  implementation  of  rail  projects  include  (i)  prioritisation  of projects    (ii)  substantial  increase  in  allocation  of  funds  on  priority projects (iii) delegation of powers at field level (iv) close monitoring of progress  of  project  at  various  levels,  and  (v)  regular  follow  up  with State  Governments  and  concerned  authorities  for  expeditious  land acquisition,  forestry  and  Wildlife  clearances  and  for  resolving  other issues pertaining to projects.

Average annual Budget allocation in the Indian Railways for New Line, Gauge Conversion and Doubling works during 2014-19 has increased to ` 26,026 crore per year from ` 11,527 crore per year during 2009-14, which is 126% more than average annual budget outlay of 2009-14 and Revised Budget outlay of ` 40,757 crore was provided to these projects for  financial  year 2020-21 which is 254%  more  than  average  annual

budget  outlay  of  2009-14.  For  financial  year  2021-22,  highest-ever budget  outlay  of ` 45,165  crore  has  been  proposed  for  these  works, which is 292% more with respect to average annual budget outlay of 2009-14.

During  2014-19,  13,124  km  length  (3035  km  New  Lines,  3,993  km Gauge  Conversion  and  6,096  km  Doubling)  has  been  commissioned which is 73% more than the commissioning during 2009-14 (7599 km). During 2019-20, 2,226 km length (360 km New Lines, 408 km Gauge Conversion and 1458 km Doubling) has been commissioned which is 46% more than average annual commissioning during 2009-14 (1,520 km/year).

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