Press "Enter" to skip to content

Cost of 18 projects in J&K escalated by Rs 26,062 crore due to late execution

Last Updated on March 10, 2021 at 8:59 pm

According to a government of India report, delay in implementation of 18 projects in J&K has costed the administration a rise of Rs 26,062 crore.

Union Ministry of Statistics and Programme Implementation (MOSPI) report states that the total amount of implementing 18 projects was originally estimated at Rs 30,483 crore. But since there was a delay in execution of these projects, so this amount has now increased to Rs 56,545 crore. The administration has already spent Rs 40,882 crore on these schemes.

The MOSPI has responsibility to oversee infrastructure projects whose cost is Rs 150 crore or above. The report states that this delay has caused cost escalation and also time overrun. Udhampur-Baramulla rail link is late by 20 years as a result of this delay.

The report finds that the Pakal Dul hydroelectric project, which was approved in 2014, is facing a time overrun of 63 months. The Awantipora Kashmir AIIMS is also facing a delay in execution. There is also a delay in execution of the road widening project of Srinagar-Jammu National highway. The Qazigund Banihal road link is also going through a delay of 62 months.

Srinagar to Banihal road got sanctioned in 2011. Now, it is facing a time overrun of 76 months. This project was approved with a Capital Investment of Rs 1100.70 crore and was expected to complete in June 2014. As of now, it is 90% complete. Out of a total length of 65.41kms, only 57.44 KM road has been over.

Another road of Udhampur-Ramban Section of National Highway got approval in December 2015 with a Capital Investment of Rs. 2136.97 crore. It was scheduled to complete in July 2020. Its present physical progress is just 58.90%.

In December 2015, four laning of Ramban-Banihal project received approval with a Capital Investment of Rs. 2168.66 crore. It was expected to complete on December 20. Its current physical progress is 17.07%.

The report notes that the extra cost because of general price escalation can’t be avoided, however it could be minimized.

The report further adds that the system of Standing Committees (under chairmanship of Additional Secretary of concerned Ministry) in each Ministry to supervise the time and cost overruns in projects and to have the responsibility should be made more effective and realistic.