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Though almost three years into its second tenure at the Centre, UPA-II continues to be plagued with the virus of "policy paralysis", which seems evident from the fact that several high profile projects in significant sectors are running way behind schedule led by Railways whose projects have recorded 103 per cent of cost overruns, followed by Atomic Energy (16.6 per cent), Coal (12.4 per cent), and Civil Aviation (11.7 per cent).
According to a flash report issued by the Ministry for Statistics and Programme Implementation (MOSPI), it found that till October 2011, out of the total 583 Central projects monitored, not only several of them were found to be delayed leading to obscene amount of cost and time overruns ranging from one to 18 years, many projects under several significant sectors were sanctioned without even finalising the date of their completion. In all, the total original cost of all the 583 projects was Rs 712,812 crore while the anticipated cost after the delays stood at Rs 821,664.7 crore, leading to cost overrun of 15.3 per cent.
In the Railways sector, out of the total 132 projects, 66 projects were such which were commissioned without finalising the time of their completion while 26 projects are delayed. Only 14 of these projects were found to be running on schedule. The original cost of these 132 projects was Rs 65,054.7 crore, however due to the delay the cost overrun led to their anticipated cost of Rs 132,203.1 crore, i.e. 103 per cent of cost overrun. Significantly the time delay in railway projects ranged from two months to almost 18 years. The much in news Atomic Energy sector too features in the review as out of the total four projects reviewed under the report, while three of them are delayed, one of them has been sanctioned without fixing any date of completion.
Incidentally among the four projects monitored by the MOSPI report, one is the controversial Kudankulam Atomic Power Project which was approved in December 2001 and is yet to be completed after work on its capacity expansion was stalled due to all round protests against it in the aftermath of last year's Fukushima radiation leak. The original cost of this project was Rs 13,171 crore, while the anticipated cost after numerous delays comes to Rs 15,824 crore. The overall original cost of all the four projects was Rs 29,228 crore, which escalated to Rs 34,066 crore after the delays, thus leading to 16.6 per cent of cost overruns. Time delay in these projects ranged from 11 months to 4 years.
In the high profile petroleum sector, the report noted that out of the total 71 projects monitored, 29 were delayed, while 10 projects were started without fixing any date of completion, in other words, are indefinitely delayed. The total original cost of these 71 projects was Rs 156,539.5 crore, which escalated to Rs 164,117.8 crore due to delays.
The time delay in these petroleum projects ranged from two months to 10 years. The controversial telecom sector, already marred by the 2G spectrum scam, has performed miserably in the MOSPI report too. Out of the total 40 projects reviewed, while two of them were delayed, 38 of them were delayed indefinitely as they were initiated without fixing any date of their completion. The overall time overrun in these telecom projects ranged from 17 months to six years.
In the coal sector, which has been battling with the widening gap in demand and supply of the dry fuel to thermal plants across the country, of the total 48 projects, 17 were found to be delayed while 12 of them were delayed indefinitely. The original cost of these projects was Rs 27,241 crore, which escalated to Rs 30,628 crore, thus leading to a cost overrun of 12.4 per cent. The time delay in this sector ranged from nine months to 4 years.
The Civil Aviation sector had four projects running behind schedule against its name out of the total five reviewed by the MOSPI report. The overall cost of these five projects was Rs 5,021 crore, which got escalated to Rs 5,611 crore, leading to 11.7 per cent of cost escalation. The time delay in these projects ranged from three months to 17 months.
According to a flash report issued by the Ministry for Statistics and Programme Implementation (MOSPI), it found that till October 2011, out of the total 583 Central projects monitored, not only several of them were found to be delayed leading to obscene amount of cost and time overruns ranging from one to 18 years, many projects under several significant sectors were sanctioned without even finalising the date of their completion. In all, the total original cost of all the 583 projects was Rs 712,812 crore while the anticipated cost after the delays stood at Rs 821,664.7 crore, leading to cost overrun of 15.3 per cent.
In the Railways sector, out of the total 132 projects, 66 projects were such which were commissioned without finalising the time of their completion while 26 projects are delayed. Only 14 of these projects were found to be running on schedule. The original cost of these 132 projects was Rs 65,054.7 crore, however due to the delay the cost overrun led to their anticipated cost of Rs 132,203.1 crore, i.e. 103 per cent of cost overrun. Significantly the time delay in railway projects ranged from two months to almost 18 years. The much in news Atomic Energy sector too features in the review as out of the total four projects reviewed under the report, while three of them are delayed, one of them has been sanctioned without fixing any date of completion.
Incidentally among the four projects monitored by the MOSPI report, one is the controversial Kudankulam Atomic Power Project which was approved in December 2001 and is yet to be completed after work on its capacity expansion was stalled due to all round protests against it in the aftermath of last year's Fukushima radiation leak. The original cost of this project was Rs 13,171 crore, while the anticipated cost after numerous delays comes to Rs 15,824 crore. The overall original cost of all the four projects was Rs 29,228 crore, which escalated to Rs 34,066 crore after the delays, thus leading to 16.6 per cent of cost overruns. Time delay in these projects ranged from 11 months to 4 years.
In the high profile petroleum sector, the report noted that out of the total 71 projects monitored, 29 were delayed, while 10 projects were started without fixing any date of completion, in other words, are indefinitely delayed. The total original cost of these 71 projects was Rs 156,539.5 crore, which escalated to Rs 164,117.8 crore due to delays.
The time delay in these petroleum projects ranged from two months to 10 years. The controversial telecom sector, already marred by the 2G spectrum scam, has performed miserably in the MOSPI report too. Out of the total 40 projects reviewed, while two of them were delayed, 38 of them were delayed indefinitely as they were initiated without fixing any date of their completion. The overall time overrun in these telecom projects ranged from 17 months to six years.
In the coal sector, which has been battling with the widening gap in demand and supply of the dry fuel to thermal plants across the country, of the total 48 projects, 17 were found to be delayed while 12 of them were delayed indefinitely. The original cost of these projects was Rs 27,241 crore, which escalated to Rs 30,628 crore, thus leading to a cost overrun of 12.4 per cent. The time delay in this sector ranged from nine months to 4 years.
The Civil Aviation sector had four projects running behind schedule against its name out of the total five reviewed by the MOSPI report. The overall cost of these five projects was Rs 5,021 crore, which got escalated to Rs 5,611 crore, leading to 11.7 per cent of cost escalation. The time delay in these projects ranged from three months to 17 months.
