(a) whether delay in completion of ongoing railway projects has excessively pushed up
the cost as against the original allocations;
(b) if so, the details thereof, project-wise, cost-wise and reasons therefor; and
(c) the steps taken/being taken by the Railways to minimise such cost overrun and ensure
timely completion of these projects?
MINISTER OF THE STATE IN THE MINISTRY OF RAILWAYS (SHRI K.H. MUNIYAPPA)
(a) to (c): A Statement is laid on the Table of the Sabha.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF UNSTARRED QUESTION NO. 1249 BY SHRI P.T. THOMAS
TO BE ANSWERED IN LOK SABHA ON 03.03.2011 REGARDING COST OVERRUN IN RAILWAY PROJECTS.
(a) & (b): The targets for completion of projects are generally fixed every year based upon the progress
of the projects, their relative priority and availability of resources. Besides financial constraints,
the railway projects get delayed due to delay in availability of land, forestry & other clearances, law
and order conditions, contractual failure, etc. As on 01.04.2010, there were 327 ongoing new line, gauge
conversion and doubling projects having a huge throwforward of about Rs. 1 lakh crore. There is limited
availability of Gross Budgetary Support.
(c): Due to initiative taken by Railways, State Government / beneficiaries have agreed for sharing of cost
of 26 projects. Funds provided by State Governments for cost sharing projects will help in speedy execution
of projects. Four projects have also been taken up through Rail Vikas Nigam Limited in partnership with
strategic investors, these are Haridaspur-Paradip (82 Km) New Line, Obulavaripalle-Krishnapatanam (113 Km)
New Line, Bharuch-Samni-Dahej(62 Km) Gauge Conversion and Angul-Sukinda (100 Km) New Line.
To expedite completion of the ongoing projects as also to avoid cost and time overrun, the railways are
making efforts to generate additional funds through measures which are other than Gross Budgetary Support.
The measures adopted such as Public Private Partnership, participation by State Governments/beneficiaries,
additional funds for National Projects as also implementation through Rail Vikas Nigam Limited have started
yielding positive results. Also, a Central Organization for Project Implementation (COPI) is proposed to be
set up for expeditious and timely execution of projects.