Question : IRREGULAR COST ESCALATION OF PROJECTS



(a) whether the Government has taken note of Rs. 20000 crore of cost escalation in Maharashtra water projects in three months;

(b) if so, the facts thereof;

(c) whether the Government has set up any monitoring agency to check cost escalation of irrigation projects by the State Governments;

(d) if so, the details thereof;

(e) if not, the manner in which the Government plans to control revision of projects` cost by using unscrupulous practices by State Governments; and

(f) the details of other irrigation projects where budget estimates have gone up by 200-300 per cent at revised estimate stage, State-wise?

Answer given by the minister


THE MINISTER OF PARLIAMENTARY AFFAIRS & WATER RESOURCES (SHRI PAWAN KUMAR BANSAL)

(a) & (b) Two proposals (one Major irrigation project and one Medium irrigation project) with escalation of cost have been received in 2012 in Central Water Commission (CWC) from Government of Maharashtra. The details of cost escalation are Annexure-I.

(c) to (e) Irrigation being a State subject, the irrigation projects are planned, executed and maintained by the State Governments as per their priorities. The Detailed Project Reports (DPR) of the irrigation projects including the cost estimates/revised cost estimates are prepared by the State Governments themselves. However, Planning Commission has issued detailed procedure in August, 2011 for submission of revised estimates of major/medium irrigation/multi-purpose projects.

(f) State-wise details of those irrigation projects received in CWC and in which cost increased by 200-300% during April 2006 to August 2012 with respect to the previously approved cost is given at Annexure-I.