Massive hike of Rs 21,000 cr in PMDP due to cost escalation

Sanjeev Pargal
JAMMU, Oct 7: The Centre has revised Prime Minister’s Development Package (PMDP) from Rs 80,080 crores to Rs one lakh crores in view of cost escalation of various ongoing projects in both Central as well as State sectors. The Government of India will be bearing increased cost of the PMDP.
Official sources told the Excelsior that there has been an increase of about Rs 21,000 crores in the PMDP due to revised cost of various projects, which were either under execution or were in the process of being taken up and the Centre Government has briefed State leadership that they would bear increased cost of the projects.
“The PMDP, which was Rs 80,080 crores when it was announced by Prime Minister Narendra Modi in Srinagar on November 7, 2015, has increased to Rs one lakh crores in just a month short of two years,” sources said but added that this was being anticipated as some of the projects were very big in nature and delay in their start and execution was on expected lines.
They said the cost of major projects like under-construction and upcoming National Highways and roads, power projects etc has gone up drastically during the last two years prompting the Centre Government to revise cost of the PMDP and increase it to facilitate construction of the approved projects.
Not ruling out more increase in cost of the projects, sources pointed out that delay in start of two All India Institutes of Medical Sciences (AIIMS)-one each in Jammu and Kashmir, Smart Cities for Jammu and Srinagar and some other mega Projects could further increase cost of the PMDP.
However, they said, cost of the projects would be revised later especially when work starts on them and the executing agencies are in a position to work out their enhanced cost in view of delay.
“The Union Ministry of Home Affairs (MHA), which deals with the PMDP, has assured the State Government that the Government of India has decided to bear increased cost of the PMDP by revising it,” sources said, adding that the PMDP has accordingly been revised from Rs 80,080 crores to around Rs one lakh crores.
The project wise increase in the PMDP is being worked out by the Home Ministry officials in consultations with the State Government. After finalization of the details, the MHA would brief the State Government to accordingly work out revised cost of the projects.
While bearing enhanced cost of the PMDP, the Centre has given a word of caution also to the State Government that it should try to complete the projects, which were within their jurisdiction, within the time to ensure that their cost doesn’t go up further, which could lead to further enhancement of the PMDP.
Sources said the Centre has so far sanctioned Rs 62,236 crores from out of Rs 80,068 crores worth PMDP.
Sources said a total of 63 projects were being implemented through various Central Ministries and State Government Departments in the State under the PMDP.
Around Rs 40,000 crore out of the Rs 80,068-crore package have been earmarked for improving road infrastructure, including semi-ring roads in Jammu and Srinagar and upgradation of important highways besides others.
The connectivity projects taken up under PMDP include roads under Bharat Mala with a total length of about 105 kilometers covered under tourist connectivity at  a cost of Rs 2700 crore, Zojila Tunnel Rs 9090 crore, upgradation of Kargil-Zanskar road Rs 4200 crore, Srinagar-Shopian-Qazigund highway Rs 1800 crore, upgradation of Jammu-Akhnoor-Poonch highway Rs 5100 crore, Chenani-Sudhmahadev-Goha  road Rs 2100 crore, construction of tunnels at Lachulunga pass and Tanglang pass Rs 5000 crore, semi Ring Road in Jammu Rs 1400 crore, Semi Ring Road in Srinagar Rs 1860 crore, double lane road Batote-Kishtwar-Sinthan Pass-Anantnag Rs 130 crore, Udhampur-Ramban road Rs 2137, Ramban-Banihal road Rs 2169 and 4-laning of Srinagar-Banihal section of highway including tunnel Rs 2121 crore.
The PMDP also included up gradation of Srinagar-Uri-Kaman Post Road and double laning of Srinagar-Leh road at a cost of Rs 233 crore and upgradation of Nimu-Padam-Darcha road at a cost of Rs 1707 crore.
In addition, Rs 11708 crore were meant for power and new and renewable energy. This includes augmentation of power infrastructure and distribution systems, solar power and small hydro projects.
In the power distribution sector, Rs 3790 crore have been earmarked for augmentation of infrastructure for distribution systems including capital cities and tourist destinations. It excludes normal entitlement of J&K under DDUGJY and IPDS, Rs 105 crore were kept for advance technology interventions including smart grids and smart meters, Rs 4153 crore have been sanctioned for Pakal Dul hydropower project while Rs 1115 have been earmarked for Srinagar-Leh 200 KV Transmission Line.
An amount of Rs 7854 crore has been earmarked for flood relief, reconstruction and flood management. This includes Rs 1458 crore for comprehensive flood management of River Jhelum and its tributaries.
Rs 1350 crore have been kept as matching grant for $250 million World Bank-funded Jhelum-Tawi flood reconstruction project.
A total of Rs 2241 crore is meant for promoting tourism by developing new projects and tourist circuits and setting up of 50 tourist villages and conservation of Wullar Lake.

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