Question : IMPLEMENTATION OF POWER PROJECTS



(a) whether Government has observed the inordinate delay in implementing various power projects;

(b) if so, the details thereof along with the reasons for such delay;

(c) whether the matter has been discussed with the concerned Ministries and the Planning Commission;

(d) if so, the outcome thereof;

(e) the action taken/proposed to be taken for early implementation of power projects; and

(f) the likely cost escalation due to the delay in their implementation?

Answer given by the minister

THE MINISTER OF POWER (SHRI P.M. SAYEED)

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

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF STARRED QUESTION NO. 189 TO BE ANSWERED IN THE LOK SABHA ON 05.08.2005 REGARDING IMPLEMENTATION OF POWER PROJECTS.

(a) & (b) : Yes Sir. There has been delay in execution of some power projects. Delays at execution stage is mainly on account of following reasons:

-	Geological surprises
-	Location of Hydro sites in remote and inhospitable area
-	Rehabilitation & resettlement problem
-	Contractual problem
Project-wise details are annexed.



(c) & (d) : Yes, Sir. The issues relating to delays in execution of power projects are discussed regularly in the quarterly performance review meetings. Where necessary projects specific meetings are also organized.

Regular inter-action with Ministry of Environment & Forests, Ministry of Coal, Ministry of Petroleum & Natural Gas, Finance Ministry and Planning Commission have led to faster clearances of projects. The procedures for clearances have also been streamlined.

The average lead time for the 500 MW coal based unit has been reduced from 49 months to 38 months, for 210 /250 MW units reduced to 28 months from 32 months and for gas based projects it has come down from 24 months to20 months. The gestation time in respect of new hydro projects has also been declining.

(e) : To avoid delays in the execution of projects, monitoring mechanism has been strengthened. Measures taken include:


(i) Quarterly review by Ministry of for each Central Public Sector Undertaking.

(ii) Quarterly review by Ministry with Bharat Heavy Electricals Limited (BHEL) top level team.

(iii) Quarterly review by Ministry with Central Electricity Authority (CEA) for all projects of the country. Central Electricity Authority has deputed a Nodal Officer for intense monitoring of each project.

(iv) Video Conferencing with Chief Executives of select projects at more frequent intervals.

(v) Visits to projects.



(f) : The details about the likely cost escalation due to delay in the implementation of the project is annexed.

ANNEXURE

ANNEXURE REFERRED TO IN PARTS (a), (b) & (f) OF THE STATEMENT LAID IN REPLY TO STARRED QUESTION NO. 189 TO BE ANSWERED IN THE LOK SABHA ON 05.08.2005 REGARDING IMPLEMENTATION OF PENDING POWER PROJECTS.

TIME/COST OVERRUNS IN POWER PROJECTS.
Name of State / Capacity Commissi	Estimated	Estimated Reasons for delay
Project CPSU oning	Cost	cost (MW) Schedule	Original/	overrun Original	Latest (Price / Latest	level)	(Rs in	(Rs. in	Crore)	crores)
Central Sector
Thermal
Neyveli Tamil 420 Feb.,2001/	1590.58/	NA	Delay in placement of
Exp.I Nadu/ August ,	1566.23	order for main plant. NLC 2005	(Exp. Till	Order was placed on 10th	May, 03)	August, 1998.	Delay in supply of Bottom	Ash Plant refractory	material.
Hydro
Dulhasti Jammu & 390 July,	1262.97 2296.80	Law and Order problem,
HEP Kashmir 1994/	(10/88)	withdrawal of French /NHPC December	3559.77	Consortium, poor , 2005	(11/96)	geological strata in	encountered in Head Race	Tunnel (HRT), rock burst	leading to burial of	Tunnel Boring Machine.
Dhauliga Uttaranch 280 1998-	601.98 976.33	U-IV & U-III synchronized
nga HEP al / NHPC 1999/	(12/89)/	on 26th and 28th July, 2005-06	1578.31	2005 respectively. The	August, 1999	project was delayed due to	delay in tie up of	funding, acquisition of	land and Rehabilitation &	Resettlement problems.
Tehri Uttaranch 1000 March,	3391.40	3229.92	Resettlement problem,
HEP St.1 al / THDC 99/	(3/93)/	repeated dam safety March,	6621.32	studies to meet 2006	(March, 03)	apprehensions of seismic	stability, faulty	geological strata. There	was a mishap in tunnel T-2	on 2nd Aug 2004.
State Sector
Thermal
Akrimota Gujarat/ 250 June,	1338.43	NA	One unit commissioned in GMDCL 2003/	/1338.43	March, 2005. Sep.	Delay in readiness of 2005	material handling system	as matter was subjudice.
Parichha Uttar 420 April,	1703.00 / yet	NA	Non release of payment to Pradesh / 05/	to be firmed	M/s. Bharat Heavy UPRVUNL March,06	up	Electricals Limited by	project authority.
Hydro
Baglihar Jammu & 450 2004-05/	3810.00	NA	Law & order problems,
-I Kashmir / 2006-07	(1998)/	delay in construction of JKPDC	3810.00	dam concreting, there was	(1998)	slow progress earlier due	to funds constraints
Larji Himachal 126 2002-03	796.98 (	78.72	Delay in award of various Pradesh / / 2005-	3/99) /875.70	contract packages, Rock HPSEB 06	(8/01)	fall in power house area.
Maneri Uttaranch 304 2003-04/	1111.39	603.02	Slow progress in HRT and
Bhali-II al/ UJVNL 2006-07	(2/99)/	Surge	1714.41 (2005-	Shaft, contractual issues	06)	with National Projects	Construction Corporation.
Sardar Gujarat/ 1450 1994-96/	1551.86 (1986-	3950.14	250 MW at Canal and Power
Sarovar MP/ 2002-07	87)/ 5502.00	House commissioned. 400 MW Maharasht	(2002)	at River Bed Power House ra /	commissioned. Resettlement SSNNL	and rehabilitation	problems, court cases,	withdrawal of World Bank	funding.
Ghatghar Maharashtra/250 1995-96/	620.78(1992)	563.82	Delay in land acquisition.
PSS Irrigation 2005-06	/ 1184.60	Delay in award of major Dept. (3/02)	works, delay in completion Govt. of	of lower dam and flooding Maharashtra	of Power House due to	recent floods.
Pykara Tamil 150 1994-95/	70.16(87-88)	312.65	Delay in completion of
Ultimate Nadu/ 2005-06	/ 382.81 (99-	Transmission line due to TNEB	00)	forest Clearance.	Delay in award of Civil &	Mechanical works.
Purulia West 900 2002-03/	1456.56	1531.72	Due to filling of Writ
PSS Bengal / 2006-08	(9/91) /	Petition by the bidders WBSEB	2988.28	and consequent legal	(4/02)	impediments, delay	diversion of forest land.
Karbi Assam / 100 1985-86/	539.06	843.50	Frequent change in
Langpi ASEB 2006-07	(Dec. 03)/	executing agencies,	1382.56	shifting of project from	(5/02)	state to private and then	back to state sector.	There was fund constraints	earlier.