Delayed projects to cost exchequer additional Rs 54,717 cr

The government today 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 Ministry of Statistics and Programme Implementation (MOSPI), the cost 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, problem in acquiring land, environment clearances, raw material price rise and other.

The MOSPO made several suggestions like government should 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.