Contents HIGHLIGHTS FOREWORD ABBREVIATIONS USED INTRODUCTION PART-I OVERVIEW PART – II SECTORAL ANALYSIS AND PROJECT STATUS 1. ATOMIC ENERGY 2. CIVIL AVIATION 3. COAL 4. FERTILISERS 5. INFORMATION AND BROADCASTING 6. MINES 7. STEEL 8. PETROLEUM & NATURAL GAS 9. POWER 10. HEALTH & FAMILY WELFARE 11. RAILWAYS 12. ROAD TRANSPORT & HIGHWAYS 13. SHIPPING & PORTS 14. TELECOMMUNICATIONS 15. URBAN DEVELOPMENT 16. WATER RESOURCES APPENDICES Appendix-I List of Projects completed during (April, 2005 – September, 2005) Appendix-II Projects due for Commissioning during 2005 – 2006 Appendix-III List of added/complted/dropped/frozen projects (as on 30.9.2005) Appendix-IV Major factors of delay Appendix-V Summary of the Central Sector Projects in States/UTs (as on 30.9.2005) HIGHLIGHTS Total number of projects on the monitor : 683 (July –September 2005) Total original estimated cost of these projects : Rs. 2,47,204 crore Total latest approved cost of these projects : Rs. 2,66,914 crore Total anticipated cost of these projects : Rs. 2,91,890 crore Total expenditure up to September, 2005 : Rs. 1,14,200 crore Overall percentage cost overrun : 18.1% with respect to original estimates Overall percentage cost overrun : 9.4% with respect to latest sanctioned estimates Total number of projects showing cost overrun : 218 w.r.t. original approved cost Total number of projects showing time-overrun : 265 w.r.t. original schedule (Range 1- 252 months) Percentage of cost overrun in 265 delayed projects : 36.81% Total number of projects due for commissioning : 251 during the year 2005-06 (as on 30.9.2005) Total number of projects completed till 30.9.2005 : 43 Total cost of the completed projects : Rs. 12,922 crore. FOREWORD The Quarterly Project Implementation Status Report on the Central Sector Projects (costing Rs.20 crore and above) for the quarter July -September, 2005 covers 683 projects. It provides information on 52 mega projects (costing Rs.1,000 crore and above), 310 major projects (costing between Rs.100 crore and Rs. 1000 crore ) and 321 medium projects (costing between Rs.20 crore and Rs. 100 crore). The anticipated cost of these 683 projects is Rs. 2,91,890 crore. The total expenditure till 30.9.2005 was Rs.1,14,200 crore, which is about 39.12% of the total estimated cost. Against an approved outlay of Rs.42,369 crore for the year 2005-06, the expenditure up to the end of the 2nd quarter is Rs.15,161 crore. Major and Mega projects account for about 53% of the total number of projects and about 94.36% of the total anticipated cost. At the beginning of the year 2005- 06, 184 projects were scheduled to be completed during the year. In addition, 67 projects were added upto the end of 2nd quarter with dates of completion by March, 2006. Out of these 251 projects due for completion during the year, only 43 projects have been completed and another 43 projects have been partially completed. Part I of the Report gives an overview of implementation of projects during the quarter. Part II gives a sectoral analysis and the status of individual projects. 2. Out of a total of 683 projects on the Monitoring System, the approved completion schedules or anticipated Date of Completion (DOC) have not been indicated in respect of 225 projects. A major portion i.e.166 of these projects are accounted by the projects in Railway sector. The sector-wise details of the projects showing status w.r.t original and latest schedule as on the quarter ending September, 2005 is given in the table below. Table Sector wise Implementation Status of Projects with reference to original and latest schedule (Number of Projects) Ahead On schedule Delayed Without DOC Sector original Latest original Latest original Latest original Latest Atomic Energy 2 2 4 4 1 1 3 3 Civil Aviation 0 1 6 9 7 3 5 5 Coal 1 1 50 57 32 25 10 10 Fertilizers 0 0 1 1 1 1 0 0 I & B 0 0 0 0 0 0 2 2 Mines 0 0 1 1 0 0 0 0 Steel 1 1 11 11 4 4 0 0 P & NG 3 3 13 13 16 16 1 1 Power 8 8 26 26 24 24 1 1 H & FW 0 0 0 0 2 2 1 1 Railways 0 0 52 58 42 36 166 166 RT & H 0 1 8 8 85 85 8 8 Shipping & Ports 0 0 1 2 16 15 7 7 Telecom 0 0 5 5 22 22 15 15 UD 0 0 0 0 12 12 6 6 Water Resources 0 0 0 0 1 1 0 0 TOTAL 15 17 178 195 265 247 225 225 P&NG: Peroleum and Natural Gas; H&FW: Health and Family Welfare; RT&H: Road Transport & Highways; UD: Urban Development 3. Time and cost overruns have been a major problem affecting the central sector projects. The analysis shows that 265 delayed projects have accounted for a cost over run of Rs. 28,662 crore during the July-September, 2005 quarter. 4. The Chart below depicts the number of projects on schedule with respect to the original approved schedule. Project on schedule w.r.t original schedule 800 700 600 683 674 500 568 540 Total Project 400 469 462 458 454 418 414 300 401 No. of projects 371 370 No. of projects 200 185 100 178 152 148 148 135 131 123 120 119 0 108 112 88 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Sept, 05 Years 5. There has been a continuous decline in the extent of time and cost overrun attributable to closer monitoring and system improvements brought about by the Ministries concerned with the support of the Ministry of Statistics and Programme Implementation. An analysis of cost overrun in the last 13 years with respect to the originally approved cost shows that the cost overrun has declined from 62% in March, 1991 to 18.1% in September, 2005 resulting in a substantial reduction in the potential savings of the order of Rs. 1,40,480 crore. 6. The chart below gives the trend of cost overrun ( with reference to originally approved cost). Trend of Cost Overrun 70 61.6 56.8 57.5 55.8 53.9 60 51.4 46.9 50 45 40.9 37.3 36 36 40 26 30 22.3 22.4 17.7 18.1 20 % of cost overrun 10 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Sept, 05 Years 7. While the cost overrun due to general inflation cannot be avoided, the escalation on account of delays can be minimized. The institution of Standing Committees to review the time and cost overruns in projects and to fix responsibility, therefore, has to be made more effective by introducing a system of furnishing an action taken report on the recommendations of these Committees. The report of the Standing Committee is to be appended with the main note for approval of revised cost estimates by the PIB/CCEA. It is hoped that through focused attention and constant monitoring by the administrative Ministries/Departments, the declining trend in time and cost overruns in project implementation can be accelerated. (P.S. Rana) Secretary to the Government of India Ministry of Statistics and Programme Implementation Abbreviations used in the report AAI Airport Authority of India AERB Atomic Energy Regulatory Board AIBP Accelerated Irrigation Benefit Programme AIR All India Radio APW Active Process Water ATU Atomic Treating Unit BCM Billion Cubic Meter BHEL Bharat Heavy Electricals Ltd. BHPV Bharat Heavy Plates & Vessel Ltd. BLU Boiler Light Up BOLT Build , Operate, Lease & Transfer BPST Bureau of Parliamentary Studies & Training CCEA Cabinet Committee on Economic Affairs CCU Catalytic Cracking Unit CDS Crude Distribution System CDU Crude Distillation Unit CEA Central Electricity Authority CEC Central Empowered Committee CHP Coal Handling Plant CLW Chittaranjan Locomotive Works CMPDI Central Mine Planning & Design Institute COS Committee of Secretaries CPP Captive Power Plant CRIS Centre for Railway Information System CRL Cochin Refinery Ltd. CSL Cochin Shipyard Ltd. CTU Crude Topping Unit DAE Department of Atomic Energy DB Dumb Barges DCME Digital Circuit Multiplexiing Equipment DGMS Director General Mines Safety DHDS Diesel Hydro Desulphurisation project DOC Date of Commissioning DOT Department of Telecommunication DVC Damodar Valley Corporation ECL Eastern Coalfields Ltd. EIL Engineers India Ltd. EMP Enivronment Management Plan EOT Electrical Overhead travelling crane ESP Electrostatic Precipitator FCCU Fluidised catalytic Cracker Unit FE Foreign Exchange FOIS Freight Generation Information System FPU Feed Preparation Unit GAIL Gas Authority of India Ltd. GC Gauge Conversion GDS Gateway Digital Switch GIS Gas Insulated Station GT Gas Turbine GTPP Gas Turbine Power Plant HCU Hydro- cracker Unit HEC Heavy Engineering Corporation HEMM Heavy Equipment & Mining Machinery HEP Hydro Electric Project HPCL Hindustan Petrochemicals Ltd. HRT Head Race Tunnel HSCL Hindustan Steel Construction Ltd. HVDC High Voltage Direct Current IAAI International Airport Authority of India ICT Inter Connecting Transformer IDC Interest During construction IFFCO Indian Farmer Fertilizer Co-operative IMG Inter Ministrial Group IOC Indian Oil Corporation IPCL Indian Petrochemicals Ltd. KV Kilo Volts. L&T Larsen & Toubro LEP Life Extension Program LOI Letter of Intent LPG Liquified Petroleum Gas LSTK Lump sum Turnkey contract MAMC Minning & Allied Machinery Copn. MFL Madras Fertilizer Ltd. MGCL Madras Gas Cracker Complex MIS Management Information System MMSCMD Million Metric Standard Cubic Meter day MMT Million Metric Tonnes MOE&F Ministry of Environment & Forest MT Metric Tonnes MTY Metric Tonne per year MU Million Unit MW Mega Watts NALCO National Aluminium Company NBCC National Building Construction Copn.