Question : Cost overrun Projects

(a) whether Railways and Government of Andhra Pradesh (AP) entered into MoU for Vijayawada-Gudivada-Bhimavaram-Narsapur; Gudivada-Machilipatnam and Bhimavaram-Nidadavolu doubling and electrification;
(b) whether the Government of Andhra Pradesh is sharing 50% of the cost;
(c) if so, the details thereof and the present status of the project;
(d) whether there is any cost and time overrun due to COVID-19; and
(e) by when is it likely to be completed?

Answer given by the minister

MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY
(SHRI PIYUSH GOYAL)

(a) to (e) A Statement is laid on the Table of the House.
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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF UNSTARRED QUESTION NO.643 BY SHRI BALASHOWRY VALLABHANENI TO BE ANSWERED IN LOK SABHA ON 16.09.2020 REGARDING COST OVERRUN PROJECTS
(a) to (c) Yes, Sir. The project was included in Budget 2011-2012 and is on cost sharing basis with Government of Andhra Pradesh, in which Government of Andhra Pradesh is sharing 50% cost of Project. Anticipated cost of the project is ?2500 crore. and an expenditure of ?1825 crore has been incurred on the project. Railway has allocated Budget Estimate outlay of ?431 crore for this project for the year 2020-21. ?1258.51 crore is State share, out of which only ?289.39 crore has been received so far and ?969.12 crore is balance as on 31.08.2020. The project work is suffering because of non receipt of State Government share by Railway.
Out of 221 km project length, 58 km (40 km long Moturu-Akividu section and 18 km long Akividu-Bhimavaram section) has been commissioned during 2019-20.
(d) No, Sir.
(e) The project is expected to be completed by Dec, 2021.
Average Annual Budget allocation for infrastructure projects and safety works, falling fully/partly in Andhra Pradesh during 2014-19 has increased to 2830 crore per year from ?886 crore per year (during 2009-14), which is 219% more than average annual allocation of 2009-14.

Annual Budget allocation for infrastructure projects and safety works, falling fully/partly in the State of Andhra, during 2019-20 has increased to ?3,885 crore, which is 338% more than Average Annual Budget allocation of 2009-14(?886 crore/year).

Total Budget Estimate (BE) outlay for infrastructure projects and safety works, falling fully/partly in the State of Andhra for financial year 2020-21 is ?4,910 crore, which is 454% more than average annual budget outlay of 2009-14(?886 crore/year) and also 73% more than average annual buget outlay of 2014-19(?2830 crore/year).

In 2019-20, 208 km length (61 km New Line and 147 km Doubling) have been commissioned in the State, which is 185% more with respect to average commissioning during 2009-2014.

In addition, there are other important cost sharing projects suffering in progress on account of balance outstanding amount towards Government of Andhra Pradesh to the tune of ?1733 crore, which needs to be deposited by Government of Andhra Pradesh to Railway quickly to ensure timely execution.
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