Due to limited availability of resources, projects have long gestation period.
Railways have about 327 ongoing projects under new lines, gauge conversions and doublings across the country with a huge throw forward of about Rs98,000 crore as on April 1, 2010, Minister of State for Railways, E Ahamed.
He said that due to limited availability of resources, projects have long gestation period. “The targets for the projects are generally fixed on yearly basis based on the availability of resources and the progress made. Many of the projects get completed in phases. The main reasons for delay have been paucity of funds, delay in land acquisition and forestry clearance, failure of contracts and contractors, adverse law and order conditions and other market forces affecting the progress, he added.
Ahamed said that ongoing projects undergo cost escalation on account of delays as above and change in the standard of construction and technology, scope of work, inflation etc. “No fixed time frame for completion of all the projects is feasible in such a scenario. So far about Rs 36,000 crore have been spent on these projects. There are no projects for which funds have not been sanctioned for the last two years,” he added.
To expedite completion of projects, he said, a number of initiatives have been taken to generate additional resources through non-budgetary measures like Public-Private Partnership, funding by State Governments and other beneficiaries.
“Besides, to reduce delays on account of land availability, security issues and forestry clearances, etc. meetings with State Officials are held from time to time. Contract conditions have been modified to bring in efficiency in contract management, and field units have been further empowered,” he added.
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