Government agencies are yet to learn efficient implementation of projects to save time and cost overrun. The delay in executing 476 centrally funded projects has resulted in cost overrun of almost Rs 25,545 crore. Projects in the power, petroleum and railway sectors have witnessed the maximum delay in implementation.
According to an official report, delays in operationalising 476 projects have increased cost projections to Rs 3,46,347 crore as against original projection of Rs 3,20,802 crore, implying a cost overrun of 8%.
As of October 2006, out of 476 central sector projects that are on different stages of implementation, only 167 are on schedule. Another 183 projects have been delayed while about 87 do not have a fixed date of commissioning and another 34 have been sanctioned without being assigned a date for commissioning.
During the month, 15 of the 476 projects witnessed additional delays with the poor implementation being more stark in case of petroleum sector projects where seven projects showed additional delays ranging from one month to a staggering 48 months.
In fact, the railways, power and petroleum sectors have reported maximum delays, accounting for over 90% of the total cost overrun. Out of the 183 delayed projects, delays in the power sector increased project cost to Rs 1,00,390.86 crore on 56 projects against an earlier projection of Rs 94,407.38 crore.
Similarly, delays increased cost of 141 projects being implemented by the railways from Rs 42,503.91 crore projected earlier to Rs 62,787.21 crore now.
In the case of petroleum sector, cost overrun has been to the tune of about Rs 1,000 crore on several of the 30 projects it is implementing. The cost of the sole project being implemented by the department of water resources has doubled due to improper planning and subsequent delays.
The expenditure incurred on the 476 projects till October 2006 was Rs 1,20,046.10 crore, which is 34.66% of the revised cost of the project, the report has said.
In the petroleum sector, the projects that have been delayed include ONGC’s LPG recovery plant at Dahej, Dadri-Panipat R-LNG spur pipeline and Hindustan Petroleum’s green fuel emission control unit near Mumbai.
In power, some of the delayed projects include system strengthening of the Power Grid’s Vindhyachal-Korba line and National Hydro Electric Power Corporation’s (NHPC) Sewa project. The other sectors where delays in projects have been reported include water, road and transport and atomic energy.
According to an official report, delays in operationalising 476 projects have increased cost projections to Rs 3,46,347 crore as against original projection of Rs 3,20,802 crore, implying a cost overrun of 8%.
As of October 2006, out of 476 central sector projects that are on different stages of implementation, only 167 are on schedule. Another 183 projects have been delayed while about 87 do not have a fixed date of commissioning and another 34 have been sanctioned without being assigned a date for commissioning.
During the month, 15 of the 476 projects witnessed additional delays with the poor implementation being more stark in case of petroleum sector projects where seven projects showed additional delays ranging from one month to a staggering 48 months.
In fact, the railways, power and petroleum sectors have reported maximum delays, accounting for over 90% of the total cost overrun. Out of the 183 delayed projects, delays in the power sector increased project cost to Rs 1,00,390.86 crore on 56 projects against an earlier projection of Rs 94,407.38 crore.
Similarly, delays increased cost of 141 projects being implemented by the railways from Rs 42,503.91 crore projected earlier to Rs 62,787.21 crore now.
In the case of petroleum sector, cost overrun has been to the tune of about Rs 1,000 crore on several of the 30 projects it is implementing. The cost of the sole project being implemented by the department of water resources has doubled due to improper planning and subsequent delays.
The expenditure incurred on the 476 projects till October 2006 was Rs 1,20,046.10 crore, which is 34.66% of the revised cost of the project, the report has said.
In the petroleum sector, the projects that have been delayed include ONGC’s LPG recovery plant at Dahej, Dadri-Panipat R-LNG spur pipeline and Hindustan Petroleum’s green fuel emission control unit near Mumbai.
In power, some of the delayed projects include system strengthening of the Power Grid’s Vindhyachal-Korba line and National Hydro Electric Power Corporation’s (NHPC) Sewa project. The other sectors where delays in projects have been reported include water, road and transport and atomic energy.
