Three Hundred and eighteen government projects running behind schedule has cost an additional Rs 24,670 crore to the exchequer This money could have fed half of India's below poverty line population for close to four months.
A Ministry of Statistics and Programme Implementation report on the status of Central governments 897 infrastructure projects worth Rs 3,59,451 crores, surveyed between July and September 2007, shows that the maximum number of proj- ects delayed was in road transport followed by railways and power. The Railways ministry witnessed the maximum increase of 53 per cent in project costs because of delays.
As on September 30, 2007, the projects witnessed cost overruns of 15.32 per cent, thereby increasing the cost by Rs 24,670 crore, says the report. The reasons given for huge cost overrun were an exponential increase in the cost of raw material such as cement and steel.
The maximum number of delayed projects was in the road construction sector on various national highways under the National Highway Authority of India.
In Delhi, the record of the NHAI is very poor, says the report. After a delay in the Delhi-Gurgoan expressway, the widening of GT Karnal road has not been completed five years after the original date of commissioning in April 2003. Till September 2007 only 37 per cent of the work has been completed with a cost escalation of Rs 98 crore.
Lalitha Kumar, Additional Secretary in the Ministry of Statistics and Programme Implementation says the escalation of cost on account of delays can be minimised but the government cannot do much about cost overruns owing to general inflation.
The report, however points out that the government's performance on delayed project has, in fact, improved over the past 16 years. As against 60 per cent projects being behind schedule on March 1994, the percentage has fallen to about 36 per cent in 2007.
Source: Hindustan Times, May/03/2008
