Lok Sabha Question No. 499 (STARRED), answered on 2022-04-06
Subject: Cost Overrun of Projects in Tamilnadu
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: M.K. Vishnu Prasad

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA STARRED QUESTION NO.*499

## TO BE ANSWERED ON 06.04.2022 COST OVERRUN OF PROJECTS IN TAMILNADU

*499. DR. VISHNU PRASAD M.K.:

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

- (a) whether  a  large  number  of  infrastructural  projects  in  Tamil Nadu have been hit by cost overruns of nearly more than 40 per cent;
- (b) if  so,  the  details  of  each  of  these  projects  which  has  cost overrun in Tamil Nadu indicating the reasons therefor; and
- (c) the  details  of  the  steps  taken/proposed  to  be  taken  by  the Government  to  minimize  the  time  and  cost  overrun  of  the projects?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF  STATISTICS  AND  PROGRAMME  IMPLEMENTATION,  MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING  AND  MINISTER  OF  STATE  IN  THE  MINISTRY  OF CORPORATE AFFAIRS [RAO INDERJIT SINGH]

- (a) to (c): A statement is laid on the table of the house.

STATEMENT REFERRED TO IN REPLY TO PART (a) TO (c) OF LOK SABHA STARRED QUESTION NO.*499 FOR ANSWER ON 06-04-2022 BY  DR.  VISHNU  PRASAD  M.K.REGARDING  COST  OVERRUN  OF

PROJECTS IN TAMILNADU. (a) & (b) The details of infrastructure projects having cost overruns in  Tamil  Nadu  are  at  Annexure-I.  The  reasons  for  time  and  cost overruns  are  project-specific,  depends  on  a  variety  of  technical, financial  and  administrative  factors,  and  differ  from  project  to project. However, as reported by the project implementing agencies on this Ministry's On-line Computerized Monitoring System (OCMS), the  main  reasons  for  increase  in  cost  of  the  Projects  are:  Under estimation of original cost; High cost of environmental safeguards & rehabilitation measures; Spiralling land acquisition costs; Shortage of skilled manpower/labour; Changes in Project scope; Monopolistic pricing by vendors of equipment services; General Prices rise/inflation  and  Time  Overruns.  The  main  reasons  for  delay  in timely completion of the Projects are: law and order problems, delay in  land  acquisition,  delay  in  environment  and  forest  clearances, funding  constraints,  rehabilitation  and  resettlement  issues,  local body  /  municipal  permissions,  utility  shifting,  contractual  issues, delays due to Covid 19 lockdown etc. (c)The  steps  taken  by  the  Government  to  avoid  the  cost/time overrun of these projects are :Periodic review of projects under ProActive  Governance  and  Timely  Implementation  (PRAGATI)  through video  conferencing  by  Hon'ble  Prime  Minister;  Rigorous  project appraisal;  On-line  Computerized  Monitoring  System  (OCMS)  for better  monitoring;  Setting  up  of  Revised  Cost  Committees  in  the Ministries regular review of infrastructure projects by the concerned administrative Ministries.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.

*****

## Annexure-I

## STATEMENT REFERRED TO IN REPLY TO PART (a) OF LOK SABHA STARRED QUESTION NO. *499 DUE FOR ANSWER ON 06-04-2022

|   SN | PROJECT                                                                                              | SECTOR                      | AGENCY   | DATE OF APPROVAL (MM/YYYY)   | ORIGINAL DATE OF COMMISSIONING (MM/YYYY)   | ANTICIPATED DATE OF COMMISSIONING (MM/YYYY)   |   COST ORIGINAL (Rs.in crore) |   COST ANTICIPATED (Rs.in crore) |   CUMULATIVE EXPENDITURE (Rs.in crore) |   COST OVERRUN (%) |
|------|------------------------------------------------------------------------------------------------------|-----------------------------|----------|------------------------------|--------------------------------------------|-----------------------------------------------|-------------------------------|----------------------------------|----------------------------------------|--------------------|
|    1 | TIDIVANAM-NAGARI (NL)                                                                                | RAILWAYS                    | SR       | 09/2006                      | N.A.                                       | 12/2025                                       |                        582.83 |                          3444    |                                 241.49 |             490.91 |
|    2 | TIRUCHIRAPPALI- NAGORE- KARAIKKAL(SR)(GC)                                                            | RAILWAYS                    | SR       | 09/1995                      | 03/2020                                    | 03/2025                                       |                        303.98 |                          1549.09 |                                 715.89 |             409.6  |
|    3 | MAYLADUTHURAI- THIRUVARUR- KARAIKUDI-THIRU 'PONDI'- AGASTIYAMPALLI                                   | RAILWAYS                    | SR       | 09/2007                      | 02/2019                                    | 03/2025                                       |                        724.69 |                          3081.2  |                                1726.52 |             325.17 |
|    4 | MADURAI- BODINAYAKKANUR                                                                              | RAILWAYS                    | SR       | 04/2008                      | N.A.                                       | 03/2022                                       |                        164.41 |                           591    |                                 430.16 |             259.47 |
|    5 | IRUGUR- DEVANGONTHI POL PIPELINE                                                                     | PETROLEUM                   | BPCL     | 11/2012                      | 02/2017                                    | 08/2022                                       |                        678    |                          1472    |                                  19.44 |             117.11 |
|    6 | MADURAI - MANIYACHI - TUTICORIN (160 KM) DOUBLING                                                    | RAILWAYS                    | RVNL     | 02/2015                      | 03/2020                                    | 12/2022                                       |                        760    |                          1536    |                                1573.37 |             102.11 |
|    7 | PROTOTYPE FAST BREEDER REACTOR (BHAVINI, 500 MWE)                                                    | ATOMIC ENERGY               | BHAVNI   | 09/2003                      | 09/2010                                    | 10/2022                                       |                       3492    |                          6840    |                                6268.2  |              95.88 |
|    8 | EXTENSION OF MRTS FROM VELACHERY TO STN. THOMAS, MTP                                                 | RAILWAYS                    | MRTP     | 04/2006                      | 06/2013                                    | 12/2022                                       |                        495.74 |                           774.51 |                                 539.14 |              56.23 |
|    9 | PREPATION OF FEASIBILITY/DPR OF CONSTRUCTION OF NEW 4-LANE ELEVATED ROAD FROM CHENNAI PORT TO MADURA | ROAD TRANSPORT AND HIGHWAYS | NHAI     | 07/2020                      | 12/2021                                    | 12/2021                                       |                       3426    |                          5148    |                                   0    |              50.26 |
|   10 | NEYVELINEW THERMAL POWER PROJECT(2X500 MW)                                                           | COAL                        | NLC      | 06/2011                      | 12/2015                                    | 02/2021                                       |                       5907.11 |                          7980.79 |                                7429.39 |              35.1  |
|   11 | ENNORE THIRUVALLUR BENGALURU PUDUCHERRY NAGAPATTINAM MADURAITUTICORIN GAS PIPELINE                   | PETROLEUM                   | IOCL     | 05/2016                      | 12/2018                                    | 06/2022                                       |                       4497    |                          6025    |                                4270.46 |              33.98 |
|   12 | CHENNAI METRO RAIL LTD (PHASE 1)                                                                     | URBAN DEVELOPMENT           | CMRL     | 02/2009                      | 12/2015                                    | N.A.                                          |                      14600    |                         18380    |                               18051.3  |              25.89 |
|   13 | TRANSMISSION SYSTEM FOR EVACUTION OF POWER FROM NEYVELI LIGNITE CORP LTD TS - I (REPLACEMENT) IN NEY | POWER                       | PGCIL    | 05/2017                      | 07/2019                                    | 08/2022                                       |                        186.17 |                           219.66 |                                 169.82 |              17.99 |
|   14 | FOUR LANING OF TRICHY TO KALLAGAM SECTION ON NH-227 IN THE STATE OF TAMIL NADU                       | ROAD TRANSPORT AND HIGHWAYS | NHAI     | 02/2018                      | N.A.                                       | 05/2022                                       |                       1166.26 |                          1296.93 |                                 346.17 |              11.2  |
|   15 | FOUR LANING OF KALAGAM TO KARUPPUR FROM KM.38+700 TO KM. 50+382 AND TWO LANING WITH PAVED SHOULDERS  | ROAD TRANSPORT AND HIGHWAYS | NHAI     | 03/2018                      | N.A.                                       | 12/2022                                       |                       1016.92 |                          1071    |                                 383.75 |               5.32 |
|   16 | FOUR LANING OF POONDIYANKUPPAM TO SATTANATHAPURAM (DESIGN CH KM. 67.000 TO KM. 123+800) SECTION OF N | ROAD TRANSPORT AND HIGHWAYS | NHAI     | 03/2018                      | N.A.                                       | 12/2021                                       |                       2065.96 |                          2169    |                                   0    |               4.99 |