1. Maharashtra: More than 85 irrigation projects incomplete for past 30 years
BHUBANESWAR: EVEN as the State Government claims to have implemented 110 projects under the Centrally sponsored Rastriya Krishi Vikash Yojana (RKVY) in 2015-16, 29 of the sanctioned projects still remain incomplete. Of Rs 328.96 crore released for 29 projects, Rs 37.66 crore have been utilised.
A report of the Ministry of Agriculture and Farmers Welfare stated that the funds for 29 projects were sanctioned in 2015-16 and thoe are under implementation as on date.
While Rs 184 crore was sanctioned under BGREI (Bringing Green Revolution to Easter India), Rs 35.78 crore has been utilised. Similarly, Rs 1.87 crore out of an allocation Rs five crore for Gomata Samridhi Praklpa has been utilised.
Some of the projects, which were sanctioned last fiscal but are under implementation till date, include strengthening of mobile veterinary units (Rs 39.21 crore) and District Diagnostic Laboratory (DDL)/Clinical Investigation Laboratory (CIL)/State Veterinary Laboratory (SVL) with a cost of Rs 12.94 crore. A fully funded Central scheme since 2007-08, the fund sharing pattern of RKVY was changed to 60:40 in 2015-16 with reduction of Central share to 60 per cent. As a result, the State received Rs 292.36 crore from the Centre during the last financial year under the scheme. With the State’s share of Rs 199.72 crore, the total allocation under RKVY was Rs 492 crore.
Meanwhile, the Centre has indicated an interim allocation of Rs 227.39 crore for the State under normal RKVY and the assistance is for production growth and infrastructure development.
As per the scheme guidelines, the State will be eligible to receive RKVY assistance only after indicating its baseline share for agriculture and allied activities and submission of district agriculture plan (DAP) and state agriculture plan (SAP).
The Centre has relaxed the norms for the current fiscal in view of the drought situation in many parts of the country including Odisha.
The Ministry has cautioned that allocation of fund under normal RKVY will be made only after submission of utilisation certificates for 60 per cent of the funds released last year.
Delays in completing rail projects resulted in cost overruns of Rs 1.07 lakh crore ($16.4 billion)–equivalent to the yearly salary bill of its three million employees–according to an IndiaSpend analysis of a December 2015 audit report.
As of March 2014, the railways needed Rs 1.86 lakh crore ($28.6 billion) to complete these projects, said the report, “Status of ongoing projects in Indian Railways“, conducted over five years (2009-14) by the Comptroller and Auditor General of India (CAG).
Of 442 incomplete projects–new railway lines, gauge conversion and doubling–only 156 (35 percent) had deadlines, but despite targets, 75 were incomplete after more than 15 years.
The combined cost overrun of projects with a budget of more than Rs 150 crore (319 of 442) was Rs 1.01 lakh crore ($15.5 billion); for projects less than Rs 150 crore (123 of 442), the combined cost overrun was Rs 5, 614 crore ($0.89 billion), the report said.
|Project Type||Projects||Original Cost||Revised Cost (March 2014)||Cost Overrun||Cumulative Expenditure (March 2014)||Money required to complete projects as of March 2014|
|Projects costing more than Rs 150 crore||319||144,751||246,045||101,294||84,892||175,031|
|Projects costing less than Rs 150 crore||123||10,819||16,433||5,614||7,923||10,528|
Cost, Expenditure in Rs crore
Three projects unfinished after 30 years; 22 not started, although cleared 16 years ago
Of the 75 projects incomplete for more than 15 years, three were unfinished after 30 years. Further, 22 projects had not started, although some were cleared up to 16 years ago.
Here are two examples:
1. An 83.74-km railway line from Nangal Dam in Punjab’s Rupnagar district to Talwara in Hoshiarpur district: Cleared 34 years ago, the 43.91-km first phase of the line (from Nangal Dam to Amb Andaura, a town in Himachal Pradesh) was completed after nine years, in 1991. The 17-km second phase, from Una in Himachal Pradesh to Charuru Takrala, a village in Una district, started in 1998 and opened seven years later. There has been no construction since, because no money was available. Rs 383.89 crore had been spent on 46-km until March 2014, and 45 percent of the line is incomplete, the CAG report said.
2. A 42-km railway line from Howrah, West Bengal, to Amta in the same state, with a 32-km branch line to Champadanga, a town in Hooghly district: Cleared for construction 45 years ago, the first stretch of 24 km from Howrah to Bargachhia took nine years; the second 18-km stretch, from Bargachhia to Amta, was stalled for several years. Construction restarted in two phases, in 2000 and 2004, but was never completed because land could not be acquired between Bargachhia to Champadanga. In 2014, the railways wanted the project cancelled. But it is presently considered “ongoing”, with an anticipated “throw forward” cost–meaning the money required for completion–of Rs 356 crore. These are extreme examples, but they reveal how projects are started without clear plans and preparations; many fail the railways’ own financial standards.
Only 30 percent of projects meet financial requirements, rest are unviable
A provision of the Indian Railway Finance Code states: “No fresh investment proposal would be considered financially justifiable unless the net gain (Rate of Return) expected to be realised as a result of the proposed outlay, after meeting the working expenses or the average annual cost of service, is 14 per cent or more”.
The rate of return is based on the earnings from anticipated traffic. Only 30 percent of the incomplete projects had a net gain or rate of return of 14 percent, whereas 126 projects had a negative rate of return. This means 70 percent of the projects were not financially viable.
The CAG report included recommendations for future projects. Some of them:
- Indian Railways need to revisit all projects that are incomplete after more than 15 years and assess their financial viability.
- Indian Railways need to prioritise projects and ensure these are adequately funded, so they can be completed on deadline
- The Railway Board and zonal offices need to monitor projects better, so no more money is wasted.
(IndiaSpend.com is a data-driven, public-interest journalism non-profit)
And, so on there are many of these uncomplete Govt. projects, hope that the govt should complete what they say within the said time frame.