According to Ministry of Statistics and Programme Implementation, the original cost of these 216 projects was Rs 1,65,343.22 crore. The estimated cost is Rs 4,12,160.04 crore, which indicates an escalation by 149.28 per cent.
Over 60 per cent of the total 358 Indian Railways projects have accounted cost overrun due to various reasons, with their cost escalating by Rs 2.46 lakh crore, according to a PTI report. A total of 216 projects of Indian Railways are facing cost overrun of Rs 2.46 lakh crore, as per the flash report of the Ministry of Statistics and Programme Implementation for July 2018. The Ministry of Statistics monitors the central sector projects envisaging an expenditure of Rs 150 crore and above each on a regular basis. Cost overrun is the amount by which the actual cost exceeds the budgeted or estimated cost of the project.
According to the report, the original cost of these 216 projects was Rs 1,65,343.22 crore. The total anticipated cost of these projects is estimated at Rs 4,12,160.04 crore, which indicates an overall cost escalation by 149.28 per cent. The Ministry of Statistics monitored 350 projects of Indian Railways in July this year. The study disclosed that as many as 65 projects of Indian Railways out of the monitored 350 projects reported time overrun or delay of 3 months to 374 months.
After the Indian Railways sector, the power and energy sector reported the second highest occurrence of overall cost overrun. India’s power sector is one of the most diversified in the world as here, the sources of power generation range from conventional sources such as coal, ignite, natural gas, hydro and nuclear power to non-conventional sources like wind, solar, agricultural and domestic sources. Out of the 110 projects monitored by the Ministry of Statistics in the power sector, 45 reported cost overrun of Rs 63,973.82 crore. The total original cost of these 45 projects was Rs 1,78,005.08 crore which surged to a total anticipated cost of Rs 2,41,978.90 crore. Additionally, the report also stated that out of the 110 power sector projects, 36 reported time overrun (delay) of 1 month to 135 months.
The Ministry of Statistics and Programme Implementation headquartered in New Delhi is a ministry under the Government of India. The ministry is concerned with the coverage and quality aspects of statistics released. The surveys conducted by the Ministry are based upon scientific sampling methods. The present head of the ministry is DV Sadananda Gowda.