Lok Sabha Question No. 1595 (UNSTARRED), answered on 2019-11-27
Subject: Cost Overrun of Infra Projects
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: Nama Nageswara Rao, Girish Bhalchandra Bapat, Ravneet Singh

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA

UNSTARRED QUESTION NO. 1595

TO BE ANSWERED ON 27.11.2019

## COST OVERRUN OF INFRA PROJECTS

1595.  SHRI NAMA NAGESWARA RAO:

SHRI GIRISH BHALCHANDRA BAPAT:

SHRI RAVNEET SINGH BITTU:

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

PROGRAMME

- (a) whether the Indian Express dated 21 st  October, 2019 has reported that 360 infra projects show cost overruns of Rs. 3.88 lakh crore and if so, the comments of the Ministry in this regard;
- (b) the details of major central sector infrastructure schemes/projects being  implemented  in  Telangana  and  Punjab,  especially  in  Ludhiana during the last three years and the current year;
- (c) whether a large number of infra projects are stalled/running behind schedule  and  if  so,  the  details  thereof  including  reasons  therefor  and consequential cost overrun, incurring cost overrun during the last two years;
- (d) whether  the  Government  proposes  to  abandon  several  projects particularly  in  Punjab  and  if  so,  the  details  thereof  and  the  reasons therefor; and
- (e) the  details  of  the  action  plan  chalked  out  by  the  Government  to expedite/complete the ongoing projects without any further delay?

## 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 monitors on-going Central Sector Infrastructure Projects costing Rs. 150 crore and above on time and cost overruns, on the basis of information provided by the project implementing agencies on the On-line Computerized Monitoring  System (OCMS) of  this  Ministry.  As  per  the  Flash  Report  of

June, 2019, 360 projects are showing cost overrun and the overall cost overruns  is  Rs.  3.88  lakh  crore.  The  details  of  these  projects  are available in the flash report at www. cspm.gov.in/publications.

- (b) The details of Central Sector Infrastructure Projects being implemented in the country including  Telangana  and  Punjab  (including projects of Ludhiana) during the last three years [2016-17, 2017-18 and 2018-19]  and  for  the  current  year  are  available  in  the  flash  report  at http://www.cspm.gov.in/English/Archive\_fr.htm and www. cspm.gov.in/publications respectively.
- (c) As on 01.07.2019, total 1608 projects are on the monitor of this Ministry.  Of  these,  550  (34.20%)  projects  are  running  behind  their original  project  implementation  schedules.  The  factors  responsible  for delay in the execution of these projects are project-specific and depend on  a  variety  of  technical,  financial  and  administrative  factors.  The details  of  delayed  projects  including  their  reasons  are  available  at http://www.cspm.gov.in/english/publication.html.

Cost overrun during the last two years are available in the flash report of March, 17 and March, 18 at www. cspm.gov.in/publications.

- (d) As per information available with the Ministry on OCMS there is no such projects.
- (e) The major action plan undertaken to ensure completion of Central Sector  Infrastructure  Projects  without  time  and  cost  overruns  include: rigorous  project  appraisal;  On-line  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 concerned Chief Secretaries  for  removal  of  bottlenecks  and  for  facilitating  the  speedy implementation of major projects.

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