13-year delay in some govt projects!

The government's thrust on improving infrastructure notwithstanding, over one-fourth of central projects in key sectors have reported time over-run of as much as 13 years and cost escalation of up to 43 per cent.

The Economic Survey for 2006-07 tabled in the Parliament on Tuesday said that 257 of the 837 central projects are running behind schedule by one month to 13 years.

Besides, 190 projects have reported cost escalation to the tune of 43.3 per cent. "There were 837 projects with an estimated investment of about Rs 3,69,499 crore (Rs 3694.99 billion) spread over 16 sectors. Of these, 190 projects were having cost over-run to the tune of 43.3 per cent as compared to their latest approved estimates," it said.

Most projects facing time or cost over-runs are in key sectors like atomic energy, railways, water resources, civil aviation, petroleum, power, healthcare, family welfare and urban development.

The Survey, however, observed that the incidence of time and cost escalation had declined in the past 15

years.

"Time and cost over-runs have declined because of close monitoring, policy changes and systematic improvement brought out by administrative ministries concerned," it said, adding cost over-run came down from 61.6 per cent in March 1991 to 15.6 per cent in June 2006.

The Survey noted that in the case of 476 projects, each worth Rs 100 crore (Rs 1 billion) or more, the additional cost was 10.2 per cent higher at Rs 3,44,830 crore (Rs 3448.30 billion) as against the approved estimate of Rs 3,12,878 crore (Rs 3128.78 billion).

In 2005-06, 91 projects in 13 sectors such as roads, power, shipping, telecom, coal, steel and fertilisers were completed at a total cost of Rs 27,730 crore (Rs 277.30 billion).

Economic Survey 2006-07: Complete Coverage