Rail Budget 2014: Project management group to be set up to overcome delays

NEW DELHI: Given the fact that Indian Railways are plagued with project delays, Railway Minister DV Sadananda Gowda on Tuesday proposed setting up a Project Management Group at the level of Railway Board to overcome delays in project execution.

Similarly to expedite the projects at the ground level, a project Monitoring & Coordination Group consisting of officials of State Government, Railways and professionals will also be set up.

Railways have been suffering heavily because of time and cost overrun due to poor project management. Giving details of the poor state of project completion, Gowda said that in the last 30 years as many as 676 projects were sanctioned worth Rs 1,57,883 crore. Of these, only 317 projects could be completed and 359 projects remain to be completed.

Bulk of future railway projects will be financed via Public-Private Partnership (PPP) route, said Gowda. Presenting his maiden Railway budget, Gowda said, "We are prioritising time lines to finish pending projects."

Lamenting that of the many projects sanctioned by Railways, only some have been completed, Gowda said, "We require Rs 5 lakh crore to complete ongoing projects."

Gowda said, "Railways bore 23 paise/passenger each km as loss in FY14. Rail Traffic Policy lacked rational approach." "FY14 Gross Traffic Receipt stood at Rs 1.39 lakh crore," he added.

"The FY14 operating ratio is at 94%; 6% is surplus. FY15 estimate for surplus is seen at Rs 602 crore," he added.