Question : COST ESCALATION IN THE POWER PROJECTS



(a) the details of power projects in the country which are lagging behind, their time schedule for completion along with the reasons for delay;

(b) the cost of these power projects estimated at the time of approval and the cost escalation due to delay; and

(c) the steps taken/proposed to be taken by the Union Government for completion of these projects expeditiously?

Answer given by the minister

THE MINISTER OF POWER ( SHRI ANANT G. GEETE )

(a) to (c) : A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF STARRED QUESTION NO. 233 TO BE ANSWERED IN THE LOK SABHA ON 06.03.2003 REGARDING COST ESCALATION IN THE POWER PROJECTS.

(a) & (b) : Details of projects under execution which are delayed are given in Annexe.

(c) : Two tier monitoring system has been evolved. Central Electricity Authority (CEA) reviews the progress of projects under implementation on a monthly basis. Secretary (Power) conducts a similar review every quarter. Besides for each project nodal officer has been designated in the CEA who monitors the projects under his charge on day to day basis with a view to facilitating resolutions of bottlenecks through interactions with the concerned agencies at appropriate levels.

ANNEXE REFERRED TO IN PARTS (a) & (b) OF THE STATEMENT LAID IN REPLY TO STARRED QUESTION NO. 233 TO BE ANSWERED IN THE LOK SABHA ON 06.03.2003 REGARDING COST ESCALATION IN THE POWER PROJECTS.

A. Thermal Power Projects (5
Name of State Capacity Comm.Sch. Estimated Remarks project (MW) Original/ cost Latest Latest/ Original (Rs. in crore)
Akrimota Gujarat 2x125 12/2002 1338.42/ Due to non- Lignite 06/2003 1395.00 committal of funds Based 03/2003 by IDBI. Project Thermal 09/2003 authorities have Power now approached Plant, Power Finance Unit-1&2, Corporation for funds.
Dabhol Maharashtra 1444 Uncertain 5604.00/ 95% works Combined completed. 4 Gas Cycle Gas Turbine already Turbine synchronized. 1 Ph. II, Steam Turbine Block rolled. Work held I&II, up since 6/2001 due to dispute between Maharashtra State Electricity Board and DPC.
Neyveli Tamil 210 02/2001 1590.58/ The synchronization Thermal Nadu 7/2003 1423.47# of unit is delayed Power (For supply of critical Station-1 unit 1 materials. Expansion, & 2) Unit-2,
B. Hydro Power Projects
Name State Capacity Comm. Estimated Reasons for Delay of (MW) Sch. cost Schem Original / Original/ latest Latest (Price level) (Rs. crore)
Dhauligang Uttaranchal 280.00 1998-99 / 601.98 (12/89)/ Delay in tying up of

(NHPC) 2004-05 1578.31(8/99) funding, acquisition of land and resettlement problems.

Dulhasti J&K 390.00 July,1994/ 1262.97(10/88) / Law and order problem,

(NHPC) Dec.,2003 3559.77(11/96) withdrawal of French Consortium, poor geological strata encountered in Head Race Tunnel (Upstream) and rock burst leading to burial of Tunnel Boring Machine.
Purulia W.B. 900.00 2002-03/ 1456.56 (9/91) / Due to filing of Writ PSS 2006-07 3188.90 (4/94) Petitions by the bidders and consequential legal impediment and also the delay in diversion of forest land for the Purulia Pumped Storage Project, the commencement of Lot-4-main civil works was delayed.
Nathpa H.P. 1500.00 Dec.2001 to 1578.02 (12/88) / Landslide and need for rock Jhakri March 2002/ 7666.31 (6/98) stabilisation work, flash

(NJPC) March, 2003 floods in July/Aug.2000, to Dec., 2003 rock fall in desilting chamber no 3&4 during May,2000 and rock falls in the desilting chamber no4 during Sept-Oct.2002 .

Tehri Uttaranchal 1000.00 1997-99/ 3391.40 (3/93) / Resettlement problems St.I Dec.2004 5690.64 (8/99)

(THDC)

Larji H.P. 126.00 2002-03/ 796.98 (3/99) / Delay in award of contract 2004-05 908.64 (8/2001) packages. Rock fall in Power House area.
Sardar Guj/MP/ 1450.00 1994-96/ 1551.86 (1986-87) Resettlement problems, Sarovar Mah. 2003- 07 / 3267.25 (1996-97) court cases and withdrawal of World Bank funding.
Bansagar M.P. 20.00 1996-97/ 51.06 (9/90) Funds constraints, delay in Tons PH IV 2005-06 84.97 (2000) finalising the executing agency and relief and rehabilitation problems
Ghatghar Mah. 250.00 1995-96 / 485.96 (1992) / Delay in land acquisition PSS 2004-05 1184.60 (1999-2000) and delay in award of major works etc.
Srisailam A.P. 900.00 1993-95/ 418.00 (1985-86)/ 600 MW commissioned. LBPH 2000-03 2620.00 (2001-02) Delay in award and slow progress of civil works, etc.
Pykara T.N. 150.00 1994-95/ 70.16(1987-88)/ Delay in award of civil and Ultimate 2003-04 373.06 (1998-99) mechanical works
Karbi Assam 100.00 1985-86/ 36.37 (1979) / Delayed due to frequent Langpi 2004-05 470.86 changes in executing

(Lower agencies, fund constraints Borpani)
Baspa H.P. 300.00 2001- 02/ 949.23 (12/93) / One unit successfully St.II 2002-03 rotated on 24.1.2003.Delayed under due to flash floods in revision July/August,2000.
Maheshwar M.P. 400.00 2001-02/ 1569.27(1996- 97)/ Delayed due to withdrawal of 2005- 07 1673.00 (4/2000) foreign promoters of the project developers. Fresh financial closure required.