50 infrastructure projects to cost Rs 65,000 crore more, says Government

NEW DELHI: The government today said the cumulative cost overrun of 50 infrastructure projects worth Rs 150 crore and above, which are delayed by over three years period, was Rs 65,771.83 crore.


The total estimated cost of these 50 infrastructure projects was Rs 67,999.01 crore which escalated to Rs 1,33,761.84 crore resulting in a cost overrun of Rs 65,771.83 crore, Minister for Statistics and Programme Implementation Srikant Kumar Jena said in a written reply to the Rajya Sabha.

"As on December 1, 2012, there were 566 projects on the monitor of this Ministry. Out of these, 270 projects (each worth Rs 150 crore or above) were delayed with respect to their original schedules of commissioning," Jena said.

The Minister said that a study conducted by Project Management Institute of India and KPMG in 2011-12, revealed that the the factors which affected the process of projects include regulatory approvals, non-availability of funds and land acquisition.

The maximum cost overrun of 1,488.67 per cent was witnessed in the Howrah-Amta-Champadanga rail project which was envisaged at a cost of Rs 31.42 crore and now it would cost Rs 499.16 crore.

In reply to another question on MPLAD scheme, the Minister clarified that the under Member of Parliament Local Area Development Scheme, funds cannot be used for religious purposes.

"Under MPLAD scheme, works within the places of religious worship an don land belonging to or owned by religious faiths or groups are prohibited," the minister said.

However, Jena said, "Crematoriums and structure on burial or cremation grounds are permitted." These works include only common works such as boundary walls, laying of pavements, etc. But no work on individual burial structure is permissible, the minister added.