All ministries have been asked to share details of delay and cost overrun in implementing projects and schemes, according to a directive issued by cabinet secretary PK Sinha.
The move comes after it was observed that several proposals involving time and cost overrun or extension in time frame of implementation of projects or schemes are being referred to the cabinet or cabinet committees for consideration.
“In this context, it has now been decided that all such proposals must necessarily incorporate in the note for cabinet/cabinet committees, specific physical and financial milestones with corresponding half yearly targets for their implementation,” Sinha said in a missive to secretaries of all central government departments.
He said that at the end of every six months, the cabinet or cabinet committees would need to be apprised of the reasons for such “slippage” along with the strategy to achieve the target.
As per norms, proposals related to the revised cost estimates (RCEs) due to time and cost overrun or extension in time frame of implementation of various projects or schemes are placed for consideration of cabinet and cabinet committees.
After approval of the projects and schemes by the competent authority, it is expected that the ministries and departments closely monitor their implementation to ensure that cost and time overruns are avoided and remedial steps taken. As many as 359 infrastructure projects, each worth Rs 150 crore and above, have shown cost overrun to the tune of Rs 2.05 lakh crore owing to delays and other reasons, according to a recent government report.
“Total original cost of implementation of the 1,289 projects was Rs 16,05,157.01 crore and their anticipated completion cost is likely to be Rs 18,10,733.70 crore, which reflects overall cost overruns of Rs 2,05,576.69 crore (12.8 per cent of original cost),” the ministry of statistics and programme implementation, which monitors infrastructure projects worth Rs 150 crore and above, said in its latest flash report for November. 2017.