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As part of the initiative to cut down time delays and cost over-runs in Central Sector Projects, the Ministry of Statistics and Programme Implementation has embarked on a number of programmes including Focussed attention on delayed projects, Standing Committees to review and fix responsibility for time and cost over-runs and Reformations in project formulation, implementation and monitoring. It carried out a detailed study on various types of clearances and analysed their relevance in the present environment. In all, 103 types of clearances were considered and the findings made available to the High level Committee headed by Dr.Govindrajan.
The Ministry assisted the Govindrajan Committee in bringing out its report in two volumes on Extant Procedures for Project Formulation, Appraisal, Implementation and Monitoring. The recommentations of the committee have already been accepted by the government and these are under implementation by all the agencies concerned. Along with it, the Ministry of Statistics and Programme Implementation is also in the process of taking up post-evaluation of completed projects, which formed a part of the recommendations of the Govindrajan Committee.
The institution of Standing Committees to review time and cost over-runs in Central Projects and fixing responsibility there for, has been made more effective by introducing a system of furnishing Action Taken Reports on the recommendations of these committees, while forwarding proposals for Revised Cost Estimates to the Project Investment Board or the Cabinet Committee on Economic Affairs, for approval. At the end of the last quarter of 2004-05, the Ministry mounted a special analysis of 263 delayed projects with respect to their original schedule and surprisingly found that only 16 projects accounted for more than 90 per cent of the total cost over-run. This has energised the ministry to take up more intensive monitoring of these projects with a view to expediting corrective actions by the agencies concerned. Inter ministerial issues, if any, relating to these projects will be taken with the authorities/departments concerned.
It may be recalled that the status of implementation of projects has already been reviewed by the officials of the Ministry of Statistics and Programme Implementation, Planning Commission, Cabinet Secretariat and the PMO. Particular attention was devoted to major factors like, delay in land acquisition, fund constraints, delay in award of contracts and civil works, supply of equipment etc. Efforts were also made to identify system-deficiencies relating to Project Formulation, Functioning of Empowered Committees, Contract Management System and Arbitration. Accordingly, some policy issues were identified for minimizing the delays. These are under consideration and in the process of implementation.
VKS/SR
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