neigrims - cost escalation rs.350 crore

Thursday, January 06, 2005

Of the two central projects in the Health Sector, i.e. the setting up of the North-Eastern Indira Gandhi Regional Institute of Medical Sciences at Shillong, Meghalaya has registered a cost over-run of more than Rs.350 crore and a time delay of 74 months. Upto September last year, an expenditure of over Rs.166 crore has already been incurred on the projects. When originally approved in May 1986 with a capital cost of about Rs.72 crore, it was to be completed in March 1999. Due to various constraints, the revised cost of the project in February 2001was put at Rs.422.60 crore and completion in March 2005.

The project being monitored by the Ministry of Statistics and Programme Implementation is now expected to be completed by May this year. According to the Project Monitoring Division of the Ministry, this scheme did not make progress to the desired extent in the initial years, due to inadequate project preparedness. Having already been examined by the Standing Committees, constituted for fixing the responsibility for time and cost over-runs, the project is now being closely monitored also by review/planning committees in the Ministry of Health, under the chairmanship of the Secretary.

The projects to be completed in five phases comprise 500 beds, 254 dwelling units, guest houses, OPD, Emergency and Diagnostic blocks and faculty building. Most of the works relating to these have been completed and the Project Monitoring Division has rated this under category A & B i.e. no problems in some areas while constraints exist in others.

VKS/SR