(a) the extent of impact of the spiralling price of steel on the on-going railway
projects;
(b) whether some of the contractors are threatening to pull out of railway projects
in view of spiralling steel prices;
(c) if so, the details thereof;
(d) the reasons for delay in the execution of work particularly in the South Central
railway;
(e) the outcome of the recently held ‘Infrastructure Builders Meet’; and
(f) the reaction of the Railways in this regard?
MINISTER OF STATE IN THE MINISTRY OF RAILWAYS ( DR. R. VELU )
(a) to (f): A Statement is attached.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF UNSTARRED QUESTION NO. 959 BY SHRI
BADIGA RAMAKRISHNA TO BE ANSWERED IN LOK SABHA ON 23.10.2008 REGARDING IMPACT OF SPIRALLING
PRICE OF STEEL ON RAILWAY PROJECTS
(a): The abnormal increase in prices of steel has been one of the major reasons adversely
affecting progress of ongoing projects.
(b) & (c): The contractors are demanding suitable compensation for such abnormal hike in price
of steel in the market.
(d): Targeted projects are not delayed except Jaggayapet-Mallacheruvu where land is yet to be
handed over to the Railways. There has been some delay in supply of sleepers for targeted works.
(e) & (f): The Infrastructure Builders’ Meet was organized to have interaction with the
Construction Industry, to make them aware of Railway Plans and to get their suggestions on
Contract Management issue. The suggestions made have been considered and appropriate action
has been initiated.