Question : Time and Cost Overrun of Projects


(a) whether more than one-third projects in the country are running late for several years after implementation of modern technology and the Government has to bear the additional burden of thousand crores of rupees in costs due to this delay;

(b) if so, the details thereof;

(c) whether no responsibility of higher officers of the Government related to these projects has also been fixed due to which these projects are running behind schedule; and

(d) if so, the steps taken by the Government to fix the responsibility of officers for late running of these projects, if not, the reaction of the Government thereto;

(e) the corrective steps taken by the Government in this regard?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS [SHRI VIJAY GOEL]

(a) & (b) Government in the Ministry of Statistics and Programme Implementation monitors on-going Central Sector Infrastructure Projects costing Rs. 150 crore and above on time and cost overruns, on the basis of information provided by the project implementing agencies. As on 01.11.2017, a total of 1283 projects are being monitored by this Ministry. Of these, 302 are running behind their schedule. The cost overrun of these 302 delay projects is Rs. 1,45,679.07 crore.

The details of Central Sector Infrastructure Projects which are running behind their schedule are available at http://www.cspm.gov.in/english/publication.html.

(c) & (d) A Standing Committee in each Ministry has been setup for fixation of responsibility for time and cost overruns. However, it has been observed that due to environmental clearances, statutory clearances, land acquisition, fund constrains, security clearances etc. fixing responsibility on any officer(s) become difficult.

(e) The major steps undertaken to ensure completion of Central Sector Infrastructure Projects without time and cost overruns include: rigorous project appraisal; OCMS for better monitoring; setting up of Revised Cost Committees in the Ministries for fixation of responsibility for time and cost overruns; regular review of infrastructure projects by the concerned administrative Ministries; and setting up of Central Sector Projects Coordination Committees (CSPCCs) in the States under the Chief Secretaries.

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