Economy Dec 20, 2012
New Delhi: The government today said there was cost overrun of Rs 52,150.68 crore in infrastructure projects at the end of March that were monitored by it.
"The cost overrun observed in infrastructure project was Rs 52,150.68 crore at the end of the 11th Five Year Plan on March 31, 2012," Minister of State for Statistics and Programme Implementation Srikant Kumar Jena said in a written reply to the Lok Sabha today.
He said the cost overrun in the projects was mainly due to inflation, change of scope, fluctuation of exchange rate and higher tender value.
The ministry was monitoring the central sector infrastructure projects costing Rs 20 crore or more till March, 2010.
This financial limit of projects on the monitor of the ministry was raised to Rs 150 crore from April 1, 2010, the minister added.
According to the information provided by the minister to the House, 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).
The other project with a massive cost overrun of Rs 3,426.10 crore, is Lumding to Silchar rail line gauge conversion, as per the information provided by the ministry.
More From Firstbiz Staff.