Delay in the execution of the mega infrastructure projects has resulted in the escalation of the budget by a whopping 36% to the original estimate, a sum of INR 52,446 crore; the first estimate was 1,45,271 crore and it has risen to INR 1,97,716 crore as on May 31, 2012, according to the official figures. The cost overrun is with regard to 28 power projects, 36 railway projects and 84 from the Ministry of Road Transport and Highways (MoRTH). The cost overrun of the Railway projects is very high; as against the original cost of INR 25,089 crore for 36 projects , the projects are expected to cost as much as INR 62, 483 crore. On enquiry into the reasons for the delay, it was pointed out that the projects got stuck up due to late green clearances; however, the matter has been expedited and the Ministry of Forest and Environment is said to have cleared as many as 80 files related to highways projects. In fact, to facilitate and speed up the execution, Prime Minister Mr.Manmohan Singh announced some relaxation of norms for transfer of government land to any other entity.
Thursday, 23 August 2012
Delay in the execution of projects costs the nation much
Delay in the execution of the mega infrastructure projects has resulted in the escalation of the budget by a whopping 36% to the original estimate, a sum of INR 52,446 crore; the first estimate was 1,45,271 crore and it has risen to INR 1,97,716 crore as on May 31, 2012, according to the official figures. The cost overrun is with regard to 28 power projects, 36 railway projects and 84 from the Ministry of Road Transport and Highways (MoRTH). The cost overrun of the Railway projects is very high; as against the original cost of INR 25,089 crore for 36 projects , the projects are expected to cost as much as INR 62, 483 crore. On enquiry into the reasons for the delay, it was pointed out that the projects got stuck up due to late green clearances; however, the matter has been expedited and the Ministry of Forest and Environment is said to have cleared as many as 80 files related to highways projects. In fact, to facilitate and speed up the execution, Prime Minister Mr.Manmohan Singh announced some relaxation of norms for transfer of government land to any other entity.
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