Lok Sabha Question No. 601 (UNSTARRED), answered on 2020-09-16
Subject: Infrastructure Projects
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: Supriya Sadanand Sule, Shrikant Eknath Shinde, Sujay Radhakrishna Vikhepatil, Kuldeep Rai Sharma, Unmesh Bhaiyyasaheb Patil, Amol Ramsing Kolhe, Sambhajirao Mane Dhairyasheel, Hemant Patil, DNV Senthilkumar. S., Subhash Ramrao Bhamre, Manickam Tagore B

## GOVERNMENT OF INDIA MINISTRY OF STATISTICS AND PROGRAMME

## IMPLEMENTATION

## LOK SABHA

UNSTARRED QUESTION NO. 601

TO BE ANSWERED ON 16.09.2020

## INFRASTRUCTURE PROJECTS

## 601. SHRIMATI SUPRIYA SULE:

DR.SHRIKANT EKNATH SHINDE:

DR.SUJAY RADHAKRISHNA VIKHE PATIL:

SHRI KULDEEP RAJ SHARMA:

SHRI UNMESH BHAIYYASAHEB PATIL:

DR. AMOL RAMSING KOLHE:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI HEMANT SHRIRAM PATIL:

DR. DNV SENTHILKUMAR S:

DR. SUBHASH RAMRAO BHAMRE:

SHRI MANICKAM TAGORE B:

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

- (a) the number of infrastructure projects undertaken by the Government during each of the last three years and the current year; (b) whether his Ministry has recently released a report on infrastructure projects in the country according to which more than 403 infrastructure projects each of worth Rs.150 crores have been hit badly and if so, the details thereof and the reasons therefor;
- (c)  whether  the  Government  is  preparing  National  Infrastructure Pipeline and if so, the details thereof;
- (d)  whether  the  Government  has  constituted  a  Task  Force  with  the objective  of  effective  delivery  of  projects  including  those  based  on

Public Private Partnership mode within time and budget for Central/State Government and Public-Sector Enterprises;

- (e) if so, whether the Task Force has submitted its recommendation and the reaction of the Government thereto; (f) the steps taken by the Government to control the cost escalation and timely completion of projects; and (g)   the anticipated completion cost, as against the original cost, both
- in terms of figure and percentage?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE  (INDEPENDENT  CHARGE)  OF  THE  MINISTRY  OF  PLANNING (RAO INDERJIT SINGH)

(a) The Ministry of Statistics and Programme Implementation compiles data on time and cost overruns of on-going Central Sector Infrastructure Projects costing Rs. 150 crore and above, on the basis of information provided by the project implementing agencies on the On-line Computerized Monitoring System (OCMS). The number of infrastructure projects, above Rs. 150 Crs, undertaken by the Government during each of  the  last  three  years  and  the  current  year,  as  reported  by  project implementing  agencies  on  On-line  Computerized  Monitoring  System (OCMS)  are  1315(March  2018),  1405(March  2019),  1686(March  2020) and  1683(June  2020)  respectively.  The  details  of  these  projects  are available in the flash report at www. cspm.gov.in/publications.

(b) Yes Sir. As on 01.05.2020, 403 projects out of 1682 on-going Central Sector Infrastructure Projects costing Rs. 150 crore and above were facing cost overruns with respect to original project implementation cost. The details of these projects are available in the flash report at www.  cspm.gov.in/publications.  The  reasons  for  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. Delay in land acquisition and forest clearance has been one of the reasons for time overrun leading to cost overrun as reported by implementing agencies.

- (c)  to  (e)  Yes.  Government  had  set  up  a  Task  Force  under  the chairmanship of Secretary, Department of Economic Affairs (DEA)  to draw  up  the  National  Infrastructure  Pipeline  (NIP)  for  the  period between Financial Year (FY) 2020-25. The Terms of Reference of the Task Force on NIP were to identify technically feasible and financially/ economically  viable  infrastructure  projects  including  those  based  on Public  Private  Partnerships  mode  that  can  be  initiated  in  the  period FY2019-20 to FY 2024-25; to estimate annual infrastructure investments/capital costs; to guide the ministries in identifying appropriate sources of financing; and to suggest measures to monitor the projects so that cost and time overruns can be minimized.  The Final Report has been released on 29.4.2020 and the National Infrastructure Pipeline is under implementation with a projected investment of about Rs 111 lakh crore in around 6835 projects. However, this number is not fixed and it can change as per requirements of the Centre and States Ministries/  Departments  and  Implementing  agencies. The  NIP  Task force has given recommendations on changes required to several key sectoral  policies  and  other  reform  initiatives  to scale  up  and  propel infrastructure investments in various sectors across the country. Action on identified reforms are being taken up by concerned Ministries/Departments.
- (f)    The steps taken by the Government to control the cost escalation and timely completion of projects are: Periodic review of projects under PRAGATI through video conferencing ; rigorous project appraisal; Online  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  Chief  Secretaries  for  removal  of bottlenecks  and  for  facilitating  the  speedy  implementation  of  major projects. (g) As on 01.07.2020 there are 1683 on-going Central Sector Infrastructure Projects costing Rs. 150 crore & above with anticipated completion cost of Rs.24,77,167.67 crore and original cost of Rs.20,65,335.20 crore with total cost overrun of Rs.411832.47 crore in figures and 19.94 in percentage.

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