Delayed projects to cost exchequer additional Rs54,717 cr

Delayed projects to cost exchequer additional Rs54,717 cr

New Delhi: The government on Thursday said delay in implementation of 598 large projects would cost the exchequer an additional Rs54,717 crore.

“According to an analysis of 598 central government projects, costing over Rs100 crore, by Ministry of Statistics and Programme Implementation (MOSPI), the cost these projects has been revised from Rs5,43,649 crore to Rs5,98,366 crore," minister of state for planning V. Narayanasamy told the Rajya Sabha in a written reply to a question.

“The delay (in implementation of projects) would result in an additional government spending of Rs54,717 crore," he said.

About whether the Committee of Infrastructure under the Planning Commission has taken a decision for not giving its nod to a project until 70% of the land required for that is acquired, he replied that there was no such decision.

He said the MOSPI analysis pointed out the factors responsible for the slow progress of projects like fund constraints, problem in acquiring land, environment clearances, raw material price rise and others.

The MOSPI pressed for a two-stage clearance system and and stricter appraisal of projects by the government before giving investment approval. According to MOSPI, the government should approve a project only after ensuring a full tie up for funds, the minister said.