The government on Thursday said that delay in implementation of 598 large projects would cost the exchequer an additional Rs. 54,717 crore.
“According to an analysis of 598 central government projects, costing over Rs. 100 crore, by the Ministry of Statistics and Programme Implementation (MOSPI), the cost of these projects has been revised from Rs. 5,43,649 crore to Rs 5,98,366 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 Rs. 54,717 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 per cent of the land required for that is acquired, he replied that there was no such decision.
He said that the MOSPI analysis pointed out the factors responsible for the slow progress of projects like funds, constraints, problems in acquiring land, environment clearances, and raw material price rise and other.
The MOSPI made several suggestions like asking the government to adopt a two-stage clearance system and stricter appraisal of the projects before investment approval and approval of the project only after fully tie up for funds, the minister added.