NATIONAL

205 rail projects report cost overrun of Rs. 2.21 lakh crore

Indian Railways accounts for nearly three-fifths of 344 Central sector projects that are facing huge cost overruns due to delay in implementation for various reasons.

The total cost overrun of 205 delayed railway projects is a whopping Rs. 2.21 lakh crore, the latest flash report of the Statistics and Programme Implementation Ministry (MOSPI) for December 2018 showed.

The MOSPI monitors Central sector projects involving an expenditure of Rs. 150 crore and above.

According to the report, the total original cost of these 205 projects was Rs. 1,68,116.34 crore up to December 2018. The total anticipated cost of these projects is estimated at Rs. 3,89,745.97 crore, which indicates overall cost escalation by 131.83%.

Power sector

After the Railways, the power sector reported the second highest incidence of overall cost overrun.

Of the 95 projects monitored by the Ministry in the power sector, 40 reported cost overruns of Rs. 63,334.88 crore.

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