Question : Cost and Time overruns in Construction of New AIIMS

Will the Minister of HEALTH AND FAMILY WELFARE be pleased to state:

(a) whether the cost of construction of six new AIIMS has escalated by Rs. 2,928 crore, if so, the project-wise details thereof and the reasons therefor;

(b) whether there is time overrun in completing the six new AIIMS, if so, the institution-wise details thereof and reasons therefor;

(c) whether the Government has conducted any assessment regarding construction of new AIIMS in the last four years, if so, the details thereof and if not, the reasons therefor; and

(d) the details of the steps taken/being taken by the Government to reduce time and cost overruns of such projects in the country since 2014, year, State and project wise?

ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF HEALTH AND
FAMILY WELFARE
(SHRI ASHWINI KUMAR CHOUBEY)
(a): As per initial Cabinet Committee on Economic Affairs (CCEA) approval in March, 2006 the construction cost for six AIIMS was estimated as Rs. 1,992.00 cr. However, this was revised by CCEA to Rs. 4,920.00 cr on February, 2010 resulting in escalation of cost estimation by Rs. 2,928 cr. The reasons cited for this cost escalation in CCEA note 2010 and project wise details is given in Annexure.

(b): There has been time overrun in the implementation of the Project, due to following factors like non-availability of land at appropriate time, failure on part of Design DPR Consultants, Project Consultants, construction agencies and delay in finalization of revised cost estimates, inadequate bid responses in some cases etc.

However at present all the six AIIMS are functional with all Specialities and majority of the Super Specialities.

(c): The Ministry has been monitoring the progress of construction at six AIIMS periodically through monthly reports, progress meetings at senior level, online monitoring through dashboard etc.


(d): Following steps have been taken by the Union Government to ensure proper implementation of PMSSY :

I. The system of assigning the construction work to executing agencies on turnkey basis with empowerment to handle all contractual matters at their end has been introduced.

II. The functional AIIMS have been empowered with greater delegation of powers in construction, procurement and administrative matters.

III. The procedure for procurement of medical equipment has been simplified and made more efficient with greater delegation and empowerment of the Procurement Support Agency (PSA).

IV. Several measures have also been taken to improve the faculty availability at National level.

V. An online dash board has been created to facilitate closer monitoring of the progress of all PMSSY projects.