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Cost-overrun on infra projects pegged at ` 520 bn till Mar 2012

Cost-overrun on infra projects pegged at ` 520 bn till Mar 2012
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At the end of the 11th Five Year Plan on March 31, 2012, cost overrun for various infrastructure projects monitored by government was Rs 52,150.68 crore.This information was given by the Minister of State for Statistics and Programme Implementation Srikant Kumar Jena in Lok Sabha.

The largest cost overrun was observed in the Delhi MRTS Phase-II implemented by the Delhi Metro Rail Corporation (DMRC) at Rs 10,218 crore during the 11th Five Year Plan (2007-12), he said.

The other project with a massive cost overrun of Rs 3,426.10 crore, is Lumding to Silchar rail line gauge conversion, the ministry said.

The minister pointed out inflation, change of scope, fluctuation of exchange rate and higher tender value as reasons for the cost overrun in the projects.
He said his ministry was monitoring the central sector infrastructure projects costing Rs 20 crore or more till March, 2010.

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