20% of infra projects running late

At a time when infrastructure is topping the government’s agenda, close to 20% of the projects across sectors are running behind schedule, resulting in costs over-runs of about 10%. 105 out of the 591 central-sector projects have reported slippages of 1-18 months, according to the Union ministry of statistics and programme implementation.

The ministry’s 284th flash report for June 2009 has listed projects in atomic energy, aviation, mines, steel, petroleum, railways, road transport and highways, urban development and telecommunications which are facing delays.

Recently, the central government constituted a Cabinet Committee on Infrastructure under the chairmanship of Prime Minister Manmohan Singh, thereby implying that infrastructure is a high-priority sector for the government.

According to the report, the total cost for implementation of 591 projects, when sanctioned, was Rs 5,25,948.03 crore but due to delay in various projects the estimate has climbed to Rs 5,80,070.21 crore, implying a cost over-run of 10.29%.

The expenditure incurred on these projects till June, 2009 is Rs 2,27,430.87 crore.
In the atomic sector, Kundankulam atomic power plant (NPCIL) has been delayed on account of slippage of commitment by the Russian company, Atom Story Exports, the report said.

In the steel sector, 6 projects have reported delays in the range of 3-14 months. While extension of the Bhilai steel plant has been delayed by 9 months, expansion of the Bokaro Steel Plant is behind the target by 10 months.

The energy sector is no different, where development of Bassei (Vasai) East, western offshore project is running behind schedule. Three projects in the power sector have reported delay due to problems related to forest clearance and agitation by local people.
In the telecommunication sector, seven projects have reported delays by 1-5 months.
In Railways, as many as 10 projects are running late by 1-17 months. While the Salka Road-Anupnagar line doubling is behind target by 10 months, the Cuttack-Barang line has reported additional delay of three months.

As for the mines sector, the second-phase expansion of Nalco is facing delay of two months. Although it has not identified any specific reason for it, the civil aviation sector is also witnessing a delay in three projects in the range of 3-6 months. Delhi Metro Transit Rapid Transit System phase-II, which comes under urban development, is running behind schedule, too.