Lok Sabha Question No. 643 (UNSTARRED), answered on 2020-09-16
Subject: Cost overrun Projects
Ministry: RAILWAYS
Asked by: Balashowry Vallabbhaneni

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.643 TO BE ANSWERED ON 16.09.2020

## COST OVERRUN PROJECTS

## 643. SHRI BALASHOWRY VALLABHANENI:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether Railways and Government of Andhra Pradesh (AP) entered into MoU for Vijayawada-Gudivada-Bhimavaram-Narsapur; Gudivada-Machilipatnam and Bhimavaram-Nidadavolu doubling and electrification;
- (b) whether the Government of Andhra Pradesh is sharing 50% of the cost;
- (c) if so, the details thereof and the present status of the project;
- (d) whether there is any cost and time overrun due to COVID-19; and
- (e) by when is it likely to be completed?

## ANSWER

MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL)

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

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF UNSTARRED QUESTION NO.643 BY SHRI  BALASHOWRY  VALLABHANENI TO BE ANSWERED IN  LOK  SABHA  ON  16.09.2020  REGARDING  COST  OVERRUN PROJECTS (a) to (c) Yes, Sir. The project was included in Budget 2011-2012 and is on cost sharing basis with Government of Andhra Pradesh, in which Government of Andhra Pradesh is sharing 50% cost of Project. Anticipated cost of the project is ₹ 2500 crore. and an expenditure of ₹ 1825 crore has been incurred on the project. Railway has allocated Budget Estimate outlay of ₹ 431 crore for this project for the year 2020-21. ₹ 1258.51 crore is State share,  out  of  which  only ₹ 289.39  crore  has  been  received  so  far  and ₹ 969.12 crore is balance as on 31.08.2020. The project work is suffering because of non receipt of State Government share by Railway. Out of  221  km  project  length,  58  km  (40  km  long  Moturu-Akividu  section and  18  km  long  Akividu-Bhimavaram  section)  has  been  commissioned during 2019-20. (d) No, Sir. (e) The project is expected to be completed by Dec, 2021. Average  Annual  Budget  allocation  for  infrastructure  projects  and  safety works, falling fully/partly in Andhra Pradesh during 2014-19 has increased to 2830 crore per year from ₹ 886 crore per year (during 2009-14), which is 219%  more than average annual allocation of  2009-14. Annual  Budget  allocation  for  infrastructure  projects  and  safety  works, falling fully/partly in the State of Andhra, during 2019-20 has increased to 3,885 crore, which is 338% more than Average Annual Budget allocation

.......2/-

₹ of 2009-14( ₹ 886 crore/year).

Total  Budget  Estimate  (BE)  outlay  for  infrastructure  projects  and  safety works, falling fully/partly in the State of Andhra for financial year 2020-21 is ₹ 4,910  crore,  which  is  454%  more  than  average  annual  budget  outlay  of 2009-14( ₹ 886  crore/year)  and  also  73%  more  than  average  annual  buget outlay of 2014-19( ₹ 2830 crore/year).

In  2019-20,  208  km  length  (61  km  New  Line  and  147  km  Doubling)  have been  commissioned  in  the  State,  which  is  185%  more  with  respect  to average commissioning during 2009-2014.

In  addition,  there  are  other  important  cost  sharing  projects  suffering  in progress on account of balance outstanding amount towards Government of Andhra Pradesh to the tune of ₹ 1733 crore, which needs to be deposited by  Government  of  Andhra  Pradesh  to  Railway  quickly  to  ensure  timely execution.

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