Cost over-run in six rlys projects of Jharkhand

Dispute over sharing the cost of six new railway projects in Jharkhand caused cost and time overruns.

The projects started in 2002, when the former NDA-led Babulal Marandi government had signed an memorandum of understanding (MoU) with the railway ministry which stipulated that the state government would share two-third of the final cost of six railway projects in the state with the balance being borne by the ministry of railways.

According to the MoU, Marandi government released Rs 421 crore to the railway ministry but successive chief ministers declined to follow the terms and conditions of the MoU in respect of the quantum of share to the project cost.

 

In 2005, former chief minister Arjun Munda had requested the railway ministry to review the MoU, considering the economic condition of the state due to its backwardness.

The pending railway projects are: Ranchi-Barkakhana-Hazaribag-Koderma (189 km) line, Ranchi-Lohardaga-Tori (113 km) line, Koderma Tilaiya (14 km) line, Koderma-Girdih (105 km) line, Deoghar-Dumka (60 km) line and Dumka-Rampurhat (64 km) line.

The six projects with an estimated cost of Rs 1,997 crore were scheduled to be completed by 2007.

According to figures submitted by the Railways to the state government, Rs 1,714 crore had been spent on the projects.

Chief minister Arjun Munda has written a letter to railway minister Mamata Banerjee asking her to ensure early renewal of the MoU for six pending projects being executed since 2002. The MoU expired in February 2007.

Munda requested her to agree on a cost-sharing of 50:50 for escalated estimates, caused due to inordinate delay in execution of the projects.

Industry sources pointed out that railway connectivity could uplift the economic condition Jharkhand by passenger and goods transportation.

An official source claimed that despite several reminders in the past three years, the agreement had not been extended even as the state continued to share costs incurred in the projects during the time.