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GOVERNMENT OF INDIA
MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION
LOK SABHA
STARRED QUESTION NO: 499
ANSWERED ON:  06.04.2022
Cost Overrun of Projects in Tamilnadu
M.K. Vishnu Prasad
Will the Minister of



STATISTICS AND PROGRAMME IMPLEMENTATION be pleased to state:-



(a) whether a large number of infrastructural projects in Tamil Nadu have been hit by cost overruns of nearly more than 40 per cent;

(b) if so, the details of each of these projects which has cost overrun in Tamil Nadu indicating the reasons therefor; and

(c) the details of the steps taken/proposed to be taken by the Government to minimize the time and cost overrun of the projects?


ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION, MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS [RAO INDERJIT SINGH]

(a) to (c): A statement is laid on the table of the house.

STATEMENT REFERRED TO IN REPLY TO PART (a) TO (c) OF LOK SABHA STARRED QUESTION NO.*499 FOR ANSWER ON 06-04-2022 BY DR. VISHNU PRASAD M.K. REGARDING COST OVERRUN OF PROJECTS IN TAMILNADU.

(a) & (b) The details of infrastructure projects having cost overruns in Tamil Nadu are at Annexure-I. The reasons for time and cost overruns are project-specific, depends on a variety of technical, financial and administrative factors, and differ from project to project. However, as reported by the project implementing agencies on this Ministry’s On-line Computerized Monitoring System (OCMS), the main reasons for increase in cost of the Projects are: Under estimation of original cost; High cost of environmental safeguards & rehabilitation measures; Spiralling land acquisition costs; Shortage of skilled manpower/labour; Changes in Project scope; Monopolistic pricing by vendors of equipment services; General Prices rise/inflation and Time Overruns. The main reasons for delay in timely completion of the Projects are: law and order problems, delay in land acquisition, delay in environment and forest clearances, funding constraints, rehabilitation and resettlement issues, local body / municipal permissions, utility shifting, contractual issues, delays due to Covid 19 lockdown etc.

(c)The steps taken by the Government to avoid the cost/time overrun of these projects are : Periodic review of projects under Pro-Active Governance and Timely Implementation (PRAGATI) through video conferencing by Hon’ble Prime Minister; Rigorous project appraisal; On-line Computerized Monitoring System (OCMS) for better monitoring; Setting up of Revised Cost Committees in the Ministries regular review of infrastructure projects by the concerned administrative Ministries. Setting up of Central Sector Projects Coordination Committees (CSPCCs) in the States under the Chief Secretaries for removal of bottlenecks and for facilitating the speedy implementation of major projects.

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