major factors causing delay in central projects

Wednesday, August 17, 2005

Of the 674 Central Projects costing Rs.20 crore and above including major and mega ones, 294 are encountering delay of varying periods and due to a variety of reasons. The Status Report of the Infrastructure and Project Monitoring Division, Ministry of Statistics and Programme Implementation for the period January-March 2005, just released also says that 37 projects suffer due to fund constraints, 155 projects because of slow progress, 43 due to land acquisition problems i.e. 12 for want of forest clearances and 31connected with other clearances.

16 projects reported delay due to non-supply of equipment in time, almost all of them indigenous, 11 following law & order problems, 8 due to delay in the awarding of contracts, 6 because of delay in civil works and 3 for selection of technology. One project delayed due to failure in signing agreement for supply of technology, two, because of geo-mining problems, four, due to inadequate infrastructure and 7 relating to environmental problems.

Only one project, as per the Report, is delayed due to court case and one more due to governmental clearance. No project is said to be suffering either because of unavailability of imported technology or weather conditions. The Report also points out that no Telecom or Mines project is encountering delay because of any of these reasons.

Railways at the top, with 141 projects associated with slow progress 34 due to fund constraints, 23 due to land acquisition problems, 3 awarding of contracts, 1 for technology, 2 supply of equipment, 2 delay in civil works, 5 law and order problem and one due to court case. In Petroleum, 5 projects delayed due to problems in the supply of equipment and one, because of slow progress. In Power, 4 projects are encountering land acquisition problems, 2 geo-mining, 4 law and order, 6 slow progress and 2 inadequate infrastructure. Coal, 7 projects suffer because of environmental problems, 8 delayed due to land acquisition, 1 fund constraint, 1 awarding of contract, 2 law and order and 2 delay in the supply of equipment. One project in Steel is affected due to delay in supply of equipment, while in Petro-Chemicals, no project has reported delay due to any of these factors. No project is affected due to supply in imported equipment. In Civil Aviation, one, project is encountering delay due to selection in technology, one because of awarding of contract and the third, due to governmental clearance.

VKS/SR